Own half the house with a parent? Any advice

Idpullthecurtain

https://forums.moneysavingexpert.com/discussion/comment/81899606#Comment_81899606

Thanks so much for suggesting that, I hadnt thought of that. Its the type of thing I think we should be considering.

Its an unfortunate position, and it shouldn't have ended up like this. The Dad didnt realise this could be a factor and he doesn't want his Daughters house to be vulnerable if it doesnt need to be.

I think this is something we should suggest to legal counsel.

As you say the issue is still there, but the can is kicked down the road.

I guess it will come down to which one of the parents needs Residential care first or ever.

MWT

https://forums.moneysavingexpert.com/discussion/comment/81898751#Comment_81898751

my Partner does have POA for him yes.

This is potentially a significant problem when it comes to dealing with the assets of the donor (father) for the benefit of the attorney (daughter).

Is this an LPA or an EPA and has it actually been activated if it is an EPA?

Idpullthecurtain

https://forums.moneysavingexpert.com/discussion/comment/81900300#Comment_81900300

https://forums.moneysavingexpert.com/discussion/comment/81900300#Comment_81900300

My partner and her Brother are the LPA for the parents.

Could this be a conflict of interest?

However, though she is an LPA, and despite Dads condition, he does still make his own decisions at this point.

silvercar

First step would be to find out if they are joint tenants or tenants in common. If they are tenants in common, I'd consider changing that to joint tenants while the father has mental capacity. That way the daughter automatically has sole ownership on his passing with no tax to pay. No CGT to pay now as notionally they both own 50% but just held differently. No CGT on death, full stop.

MWT

https://forums.moneysavingexpert.com/discussion/comment/81900409#Comment_81900409

I certainly agree with that approach, but it will not stop the council including the 50% share in their capital assessment if there is a need for support with care fees.

Idpullthecurtain

https://forums.moneysavingexpert.com/discussion/comment/81900482#Comment_81900482

I see.

But if the Dad wanted to give his share to the Mum, it might change things?

Idpullthecurtain

https://forums.moneysavingexpert.com/discussion/comment/81900409#Comment_81900409

Thanks. We do need to establish this. My partner doesnt like dealing with this sort of stuff, thats why the details are vague.

MWT

https://forums.moneysavingexpert.com/discussion/comment/81900498#Comment_81900498

At this stage that would certainly be considered as deprivation of assets I would have thought.

Idpullthecurtain

https://forums.moneysavingexpert.com/discussion/comment/81900504#Comment_81900504

But can you deprive assets by transferring something to a spouse? Aren't assets within a marriage a different matter?

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81900541#Comment_81900541

I don’t know the answer to that, but I would have thought there isn’t an automatic assumption that one can be forced to sell an asset to support care for a spouse because second marriages often lead to spouses not inheriting homes that are earmarked for the children of a first marriage. So I would have thought that a transfer between a spouse could be used to avoid care fess and hence may be considered a DoA