Mum wants to gift her house to me

paul2louise

itsthelittlethings said:

paul2louise said:

itsthelittlethings said:

If you ever need to claim benefits I think this could be an issue for you as you’ll be treated as having capital.

my husband earns too much for me to claim benefits

You can’t say you will never need to claim benefits - he could lose his job. Personally I think it’s too risky even without the other problems.

he is retiring in April, but i take your point thanks

lookstraightahead

The 7 years is nothing to do with deprivation of assets. Theoretically I think it can be taken back for care costs etc at any time. 

Who should pay for your mum's care costs do you think? 

Keep_pedalling

paul2louise said:

Keep_pedalling said:

It would be extreamly foolish for her to do this. For starters this would be deliberate deprivation of assets (Google it). Secondly even if the LA did not apply that she would be at risk of not getting care until she was sufficiently decrepit to have funding approved and could end up in over my dead body grange instead of a care home of her choosing.

If she did this she risks her long time security in the event that you die before she dies, you run into financial difficulty or get divorced. 

From your point of view you would face an unnecessary CGT liability when the house was eventually sold and if you don’t currently own a house you will loose your first time buyers status and will pay additional SDLT when you do buy a home.

You really should discourage her from doing this.

ok but i am not sure why her friends have told her that is what they have done. She is fit and well at the moment so wouldnt need care at any point just yet. 

Perhaps because her friends are extreamly foolish. 

Keep_pedalling

Chances are that your mother will never need residential care, but if she does do you really want her to be dependant on the LA to provide it? From experience I can tell you that she would not get it until she was a long way past the time she really needed it and the choice of care home will be very narrow.

Have been through this with my mother (who never owned property and had little in the way of savings), there is no way we are going to put ourselves in that situation.

greyteam1959

Keep_pedalling said:

paul2louise said:

Keep_pedalling said:

It would be extreamly foolish for her to do this. For starters this would be deliberate deprivation of assets (Google it). Secondly even if the LA did not apply that she would be at risk of not getting care until she was sufficiently decrepit to have funding approved and could end up in over my dead body grange instead of a care home of her choosing.

If she did this she risks her long time security in the event that you die before she dies, you run into financial difficulty or get divorced. 

From your point of view you would face an unnecessary CGT liability when the house was eventually sold and if you don’t currently own a house you will loose your first time buyers status and will pay additional SDLT when you do buy a home.

You really should discourage her from doing this.

ok but i am not sure why her friends have told her that is what they have done. She is fit and well at the moment so wouldnt need care at any point just yet. 

Perhaps because her friends are extreamly foolish. 

And have not had the technicalities/ legalities of 'signing over ' a property properly explained to them.

lookstraightahead

paul2louise said:

Keep_pedalling said:

It would be extreamly foolish for her to do this. For starters this would be deliberate deprivation of assets (Google it). Secondly even if the LA did not apply that she would be at risk of not getting care until she was sufficiently decrepit to have funding approved and could end up in over my dead body grange instead of a care home of her choosing.

If she did this she risks her long time security in the event that you die before she dies, you run into financial difficulty or get divorced. 

From your point of view you would face an unnecessary CGT liability when the house was eventually sold and if you don’t currently own a house you will loose your first time buyers status and will pay additional SDLT when you do buy a home.

You really should discourage her from doing this.

ok but i am not sure why her friends have told her that is what they have done. She is fit and well at the moment so wouldnt need care at any point just yet. 

They're wrong then. And your mum could (unfortunately) become unwell at any point. Like anyone's parents. And what if she needed specialist care? It's a really, really bad idea. 

lookstraightahead

Keep_pedalling said:

Chances are that your mother will never need residential care, but if she does do you really want her to be dependant on the LA to provide it? From experience I can tell you that she would not get it until she was a long way past the time she really needed it and the choice of care home will be very narrow.

Have been through this with my mother (who never owned property and had little in the way of savings), there is no way we are going to put ourselves in that situation.

I feel your pain. We've lost most of our parents now and I'm so glad we had some choices x

SVaz

Has your Mum got large savings / pension income that would cover £60k a year care costs?   If not then she shouldn’t even consider giving you the house.
Local Authorities do forensic accounting level checks when doing financial assessments for care, giving away your only house even 10/20 years ago will be a big signpost to DoA and they WILL come after you. 

You will also have to pay CGT on selling the house and if she dies within 7 years then it potentially comes back into her estate for IHT . 

Keep_pedalling

SVaz said:

Has your Mum got large savings / pension income that would cover £60k a year care costs?   If not then she shouldn’t even consider giving you the house.
Local Authorities do forensic accounting level checks when doing financial assessments for care, giving away your only house even 10/20 years ago will be a big signpost to DoA and they WILL come after you. 

You will also have to pay CGT on selling the house and if she dies within 7 years then it potentially comes back into her estate for IHT . 

The house will not even fall out of her estate after 7 years unless she also pays the OP full market rent to live in her own home.

Florafauna

Plus, how is it fair for you to expect every other taxpayer to fund your mum's care whilst you own two properties?