7 year rule?

km1500

no they won't

Silvertabby

If he does need a care home, then surely the daughter would use the proceeds from the house to fund somewhere decent, rather than dump him in 'over my dead body grove'?  Mind you, she may then be in CGT territory, which leads us back to why on earth this transfer was done in the first place......

Linton

km1500 said:

no they won't

As I understand it, the 7 year rule applies to IHT, not care home benefit.

The local authority wont come after the home. They would need the authority of the courts to do anything like that..  If the LA believe that the house was given away to avoid care home fees, no matter how long ago that was,  they are entitled to take the value of the house into account as part of the means assessment, which could leave the family in a difficult situation.

They could:
 - care for Dad themsleves in the house,
 - use their own money to pay for Dad's care
 - throw Dad out onto the street.

Spendless

My parents did something similar in the mid 90s after my Grandad died, because my Nan couldn't afford the mortgage. Though they paid that off and then the house was transferred I think. It was done through a solicitor and my Nan who is 98 still lives there for a peppercorn rent. My parents are aware they'll pay CGT. It wouldn't have fallen into IT rates. Just my Nan wanted to stay in the same home and it being 'bottom of the market' downsizing wasn't an option anyway.  Maybe it was for reasons like this?