Universal credit pip, house and inheritance

Grumpy_chap

[Deleted User] said:

1)Just on this I will look after my parents when they get old in the house, they will not go to a care home.  If I need any money spent on my parents and I don't have it I will ask my brother or sister.

Your intent is positive.  Reality may prevent you from providing the care that is required.  None of us can predict what level of care your parents may require or for how long.

I am confused by the need to ask your siblings for money to care for your parents.  Won't your parents fund any care from the £500k they have as stated upthread?

[Deleted User] said:

The house is worth £450k and the money is around 250k each

But the house no longer belongs to the parents, does it, as transferred to son.😜 No offense to anyone.Well, I am not sure, I thought the house (worth £450k) plus the cash assets (£500k) were all currently owned by the parents (presume both still alive).
When parent 1 dies, everything transfers to parent 2.
When the second parent dies, the house transfers to the OP and the remaining cash from the current £500k is split equally to the OP's two siblings.

That is how I read it from the OP:

[Deleted User] said:

when my parents pass away the house I currently live in with my parents, which is in my parents name is set to be transferred into my name and my brother and sister who live in their own houses are set to receive all of the money my parents had, split between the two of them.

If it is not like that and the house and cash assets are to be transferred ahead of death, it will change things in quite a high number of ways, some of which may have complex outcomes.

[Deleted User]

elsien said:

[Deleted User] said:

1)Just on this I will look after my parents when they get old in the house, they will not go to a care home.  If I need any money spent on my parents and I don't have it I will ask my brother or sister.

2) if the house was transferred into my name now instead of when they die, would this affect my UC or pip in anyway

For what purpose, exactly? 

So it wouldn't need to go into a will.  It may be easier to get it done now if it doesn't affect my UC or pip

As for care for my parents my brother and sister will help, there are no worries there, there will be enough of us around to help, I can get up to another 4 people to help if needed constant care aswell as carers

[Deleted User]

Grumpy_chap said:

[Deleted User] said:

1)Just on this I will look after my parents when they get old in the house, they will not go to a care home.  If I need any money spent on my parents and I don't have it I will ask my brother or sister.

Your intent is positive.  Reality may prevent you from providing the care that is required.  None of us can predict what level of care your parents may require or for how long.

I am confused by the need to ask your siblings for money to care for your parents.  Won't your parents fund any care from the £500k they have as stated upthread?

[Deleted User] said:

The house is worth £450k and the money is around 250k each

But the house no longer belongs to the parents, does it, as transferred to son.😜 No offense to anyone.Well, I am not sure, I thought the house (worth £450k) plus the cash assets (£500k) were all currently owned by the parents (presume both still alive).
When parent 1 dies, everything transfers to parent 2.
When the second parent dies, the house transfers to the OP and the remaining cash from the current £500k is split equally to the OP's two siblings.

That is how I read it from the OP:

[Deleted User] said:

when my parents pass away the house I currently live in with my parents, which is in my parents name is set to be transferred into my name and my brother and sister who live in their own houses are set to receive all of the money my parents had, split between the two of them.

If it is not like that and the house and cash assets are to be transferred ahead of death, it will change things in quite a high number of ways, some of which may have complex outcomes.
How about transfering the house now to me but not the cash until after the death for my brother and sister

kaMelo

I don't understand what it is you're trying to achieve here by transferring ownership of the house now and I don't think  you're aware of the pitfalls of doing so.
If home ownership transferred to you and you predecease your parents, what happens then?   If you're married what happens should you divorce? Are you're other siblings okay with you becoming the home owner?  There is nothing they can do to stop it but it doesn't mean they have to like it.
Whilst there is currently no IHT liability transferring the home into  your name does not remove the house from their estate for IHT purposes as, unless you're charging them rent at a market rate, it would be a gift with reservation. Should it's value increase to the point IHT is due the value of the home would be included in full in their estate.

If there was a reason to do so then maybe,  however from the information you've given I only see potential negatives and no benefits.

peteuk

[Deleted User] said:

How about transfering the house now to me but not the cash until after the death for my brother and sister

So you get the house now and then your parents need care so bang goes the £500K…result is you get the house and your brother and sister get FA.

How many times are you going to rehash a question that has already been answered?

Your PIP is not means tested so owning or not onwing a house will have no effect on you payment.  Equally if there is a change and you get £500K will have no effect on your payment.   Your PIP is safe. 

Your UC will not be effected if you live in a house you own, regardless of the cost of the house.   You wont get any housing element of UC but as your currently living in the house with your parents you wont be getting that anyway.  If you own the house now or in 5 yrs it wont change your UC.  If you own the house and move out then it will change your UC.

The effect of giving you the house now is the potential of your parents going into care, but with £500K in the bank they can afford this.  Are they in reasonable health at present to not be at risk of going into care.  If not although you suggest the family will look after them there is never a 100% on this.  But they have the £500K to fall back on.
 




 

theoretica

If the only/main reason for transferring the home now would be potential care home fees, I think you would be wise to look at when a property is not taken into account for such fees.  Are you over 60?  Unfortunately 'incapacitated' is not clearly defined for this purpose, but you getting PIP indicates it may apply.

'A property must be disregarded where the relative meets the qualifying conditions (i.e. is aged 60 or over or is incapacitated) and has occupied the property as their main or only home since before the resident entered the care home.'  https://assets.publishing.service.gov.uk/media/5a7e21d040f0b62305b81026/Relatives_Property_Disregard_Guidance_final.pdf

[Deleted User]

Ok thank you for everyone's help