Selling family home to pay for care home

Holty71

Our mum is in a care home with Dementia, myself and brother have  option but to sell the house to fund the care. , House is registered 50% to mum 25% to us siblings .  We are told that the funds from house sale must go into some form of separate account otherwise it will all be eligible to pay for care ? Struggling for help and guidance on this. 

Albermarle

Can you first clarify a couple of points?

Is the house currently empty, or is someone living there? If so, who?

How did you and your brother each get 25% of the house? Did your Mum give it to you? If so how recently?

theartfullodger

Sorry to read your story.

Does anyone have power of attorney for mum?  

Do land registry deeds reflect what you say about ownership% etc?

Keep_pedalling

If you inherited share from your father was your mother given a life interest or was it left to you outright? If the former what did the will say about the capital raised from a house sale.

Normally a will would create an immediate post death interest trust giving the surviving spouse the beneficial interest tin the house and the children would not inherit until the second spouse died. 

As you and your sibling have been registered as owners you are likely to have a CGT liability on your share.

Holty71

House is empty ,  we have POA ,  as dad left his share to us  in his Will  this has been legally changed by deed of variation on Land Registry

elsien

Who has told you the funds need to go into a separate account? Separate account to what?

Surely if you have power-of-attorney for your mother the solicitor completing the sale will send her share of the money to whatever account you are using for her, and the share of the money for the siblings will go to them?

Bookworm105

as above, upon completion of the sale the funds will be paid over to the people they belong to.
end of discussion

Annie1612

Is this a will trust by any chance? Where your father’s share of the house has been left in trust to you with your mother having the right to live in the house for her lifetime?  I have been dealing with one of these as executor/trustee and it has been an utter pain and still not resolved after 18 months due to HMRC delays, but that’s by the by. 

If it is, then yes you are right, the proceeds from the house sale would need to be split with the money from your fathers share going in a trustees bank account (where it cannot be touched) and the rest going in your mothers account. 

If it’s not a trust, then please ignore the above. Also, I am not a solicitor so you could perhaps check with the solicitor who drew up the will.