Tenants in Common, 50% in trust

BungalowBel

My husband and I own our bungalow as 50-50 tenants-in-common (ever since we bought it in 2015), and each of us have left our share to our son.  When the first of us dies, our son inherits 50% in trust.  He does not live in the bungalow.  We are in our early 70s with no major health issues.

If  the remaining parent has to go into care, will our son's 50% be counted in the means test?

Keep_pedalling

No, his share will not be included in the financial assessment.

BungalowBel

Thank you for your reply.

Any idea how it would work then, as half a house isn't going to have any value?

Mojisola

BungalowBel said:

Any idea how it would work then, as half a house isn't going to have any value?

The person going into care would be assessed as having capital amounting to half the value of the property.

The council would put a charge on the house which would have to be repaid on the sale of the property or the death of the person in care.

Keep_pedalling

BungalowBel said:

Thank you for your reply.

Any idea how it would work then, as half a house isn't going to have any value?

Assuming this is an immediate post-death trust on the first death the surviving spouse becomes the beneficial owner of the whole house with the trust holding 59% of the legal ownership. If the surviving spouse has to go into residential care then the house can be sold, the trust dissolved with half the proceeds going to your son and the rest going to the surviving spouse which will hopefully be sufficient to purchase quality care in a decent home for as long as needled.

BungalowBel

Thanks both.

Mojisola

Keep_pedalling said:

Assuming this is an immediate post-death trust on the first death the surviving spouse becomes the beneficial owner of the whole house with the trust holding 59% of the legal ownership. If the surviving spouse has to go into residential care then the house can be sold, the trust dissolved with half the proceeds going to your son and the rest going to the surviving spouse which will hopefully be sufficient to purchase quality care in a decent home for as long as needled.

Should be 50%?

Keep_pedalling

Mojisola said:

Keep_pedalling said:

Assuming this is an immediate post-death trust on the first death the surviving spouse becomes the beneficial owner of the whole house with the trust holding 59% of the legal ownership. If the surviving spouse has to go into residential care then the house can be sold, the trust dissolved with half the proceeds going to your son and the rest going to the surviving spouse which will hopefully be sufficient to purchase quality care in a decent home for as long as needled.

Should be 50%?

Whoops! Typo.

ameliapipers

No, his share will not be included in the financial assessment.

I was just about to say that.

gentlepurr

I have been through exactly this. Mom died in 2008 and her share of the property was in a trust. Dad went into care in 2015 and at that stage we sold their home to fund dads care home fees. 50% went to dad, and 50% went to the trust and was dispersed as per moms wishes xx