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Putting Mums house in my name - benefits

Hello, any help or advice much appreciated:

I live at my mums (she's mortgage free) with my two kids. Both kids are autistic and I work one day a week, the other 4 taking care of my children's needs. 

She wants to place her house in my and my sisters names. Would I lose my benefits? 

Is there a better solution? She wanted to initially take equity from the house but has decided against it. Then about downsizing and we live near each other. But she wants to live with us, so is now wanting to keep the house and sign it over and she live here always (unless needing care but right now, she's fine, able to drive etc).
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Comments

  • sheramber
    sheramber Posts: 21,871 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Has she made a will?

    She can leave it to you both in her will.




  • This would be a very foolish thing to do for several reasons, the primary one being her long term security, which could be threatened if you or your sibling die before her her, run into financial difficulty or get involved in a messy divorce.

    Also look up deliberate deprivation of assets.

  • Olinda99
    Olinda99 Posts: 2,042 Forumite
    1,000 Posts Third Anniversary Name Dropper
    yes the key question here is most definitely why is she doing it what does she want to achieve
  • She's 76 and worried that the care home, if she were ever to go in one, would swallow the money her and Dad had in the house. She wants the house kept in the family.
    She was suggesting signing the house over but have it written thru solicitors that she can't be evicted so we all know where we are.
  • 400ixl
    400ixl Posts: 4,482 Forumite
    1,000 Posts Third Anniversary Name Dropper
    This is not a good idea on many fronts.

    1) She will be seen as having deprecated assets - https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/
    2) she may (if above is not identified) only get the care the Local Authority is willing to pay for which is not allways very good. Do you want to see your mother in that position
    3) If care needs didn't occur she would be swapping potential tax free inheritence for you both into Capital Gains tax liability.

    There are recent threads on this same topic as recently as this weekend which go into detail about why this is a bad idea.
  • Thank you, I will better search for those now then.
  • With dependant relatives living with her, it is likely the house would be disregarded in any financial assessment anyway.

  • theoretica
    theoretica Posts: 12,689 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Also, situations change, and you or your sister might want to move. Owning her house while *not* living in it would open up a heap of complications for benefits, capital gains tax, stamp duty...
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
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