Lease for life

Zebedee2001

Hi all,

Appreciate some thoughts on this. My partners mother is trying to transfer her house to my partner under a lease for life so that government won't get any money if she goes in to a home. My partner is being told that will have no affect on her. It seems too simple.

I have seen the "tenancy" agreement which says her mother pays zero rent for a period of 30 years (she is in her 80s). It says my partner has to keep the house maintained and insured. 

Surely there are tax implications from being given the house. Also, my partner is still married to her husband although they are separated. What happens if they do get divorced, surely her mother's house could become part of her equity. 

Appreciate your thoughts

itsthelittlethings

If your partner ever needs to claim means tested benefits they might struggle as they will be treated as having capital.

swingaloo

That's a complete non starter.
The government don't get money if she has to go into a home. The money is still hers and it  is used to pay for her ongoing care.
She cant just give her home away and then expect the taxpayer to pay for he care.

Slinky

Bet the ex-partner will be rubbing hands with glee at this mad idea.

km1500

i wonder why everyone else doesn't do this wonderful idea

elsien

Tell her to google deliberate deprivation of assets and also gift with reservation of benefit because there will be tax implications as well. 

Then of course, if your partner becomes ill and can’t work, needs to claim means tested benefits, gets in debt and goes bankrupt a property they are not living in will count as an asset in all those circumstances.