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Selling Dad's Property

Not sure which section to put this in but here seemed the obvious place.

My 73 year old dad has just been offered a flat in a very sheltered housing complex, his health has been poor for a while and his care needs have increased so this is just what he needs, getting more care but keeping his independence.

As he owns his flat can the place he is going to is rented we now need to look at selling his property.

The query is now that if we sell the flat and invest the money for him, what are the implications for the future should he deteriorate and have to go into a care home? Will he still need to pay for that from the money in the bank?

I know he has really been keen to make sure my wife and I get the benefit of his flat when he dies but obviously we need to make sure we are not breaking any rules.
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Replies

  • Sparx8Sparx8 Forumite
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    Why not rent his property out assuming he owns it outright ? Wouldn't that pay for his care
  • Sparx8 wrote: »
    Why not rent his property out assuming he owns it outright ? Wouldn't that pay for his care

    We have thought about that option but just a little wary of it after seeing the mess that tenants left in a friends house that was rented out.

    As far as care and rent costs are concerned he will be able to cover those costs from his income.
  • getmore4lessgetmore4less Forumite
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    Deprivation of assets and care.

    This is the area you need to research.

    One of the best way to preserve a relatives assets from care fees is to care for them.
  • G_MG_M Forumite
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    The query is now that if we sell the flat and invest the money for him, what are the implications for the future should he deteriorate and have to go into a care home? Will he still need to pay for that from the money in the bank?
    Unless you have POA you cannot sell or do anything. Only he can do this.

    If/when he goes into a car home, he can apply to the Local authority for funding. They will assess his assets. If the value of his assets (investments, savings, property etc) is greater than (around £18K I think?) they will not fund him. He will have to self-fund until his assets drop below the threshold.

    before you ask, he cann give the property/money to you (or others). The LA would look at this and define it as 'Derivation of Assets' (use google).

    Look at the Age Concern website for more.
  • xylophonexylophone Forumite
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    If the house is sold, the money belongs to your father and should be deposited/invested by him or for him if you have Power of Attorney.
    It would appear that your father still has capacity but it might well be a good idea to look into LPA if you have not done so already.


    https://www.gov.uk/power-of-attorney/overview

    If your father should need to go into a home, his means will be assessed - in view of his current state of health, any gift to you of the property or large amounts of cash would almost certainly be regarded as deprivation of assets/capital.

    See

    http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS10_Paying_for_permanent_residential_care_fcs.pdf?epslanguage=en-GB?dtrk=true

    http://www.ageuk.org.uk/latest-press/age-uk-unravels-the-mystery-of-the-social-care-reforms-and-says-read-the-small-print
  • edited 5 February 2015 at 2:29PM
    BeancounterBeancounter Forumite
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    edited 5 February 2015 at 2:29PM
    Thanks, I knew all about "deprivation of assets" and thresholds for paying fees etc but just wasn't sure if that would still be the case in the event of him selling but then going into care years down the line.

    Yes, I do have POA, he isn't really in any state to look after such complex matters.

    I just want to make sure we are doing the best thing for him.

    Just incase anyone thinks we are just wanting our hands on his money that is certainly not the case. I know he will try to give us a large chunk of it but obviously that is not possible.
  • teddysmumteddysmum Forumite
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    Whether he still owns his flat or has the money from its sale , the value will still be considered as part of his assets for care provision assessment.


    Whether or not he can leave you premises or money will depend on what is left when care debts (if any) are paid and not on his passing them to you now, especially as he is aware that he has needs already.
  • knightstyleknightstyle Forumite
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    Just a thought, DD in a similar place with inlaws is selling direct to a developer the estate agent keeps on his books, fair price, no survey and he will clear the house of old furniture etc.
    They think the care home costs will be OK as inlaws are renting a bungalow and will almost certainly live at least 7 years.
  • CattiCatti Forumite
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    No 7 year rule for deprivation of assets.

    I would also think about keeping the flat and renting it - you can keep the additional income to one side should it be needed for funding care in the future!
  • G_MG_M Forumite
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    Just a thought, DD in a similar place with inlaws is selling direct to a developer the estate agent keeps on his books, fair price, no survey and he will clear the house of old furniture etc.
    They think the care home costs will be OK as inlaws are renting a bungalow and will almost certainly live at least 7 years.
    7 year rulle pplies to gifts and Inhertance Tax, not Deprivation of assets.
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