Setting up a Trust for Property
Malibusmash
Posts: 109 Forumite
My elderly Father recently fell ill and needed to go into a care home, however he passed away just before this occurred. During the process, we learned that because he had £30,000 in savings (over the £23,250 care cap), he would have to pay the full cost for the care home fees.
We also learned that because he co-owned his home (worth approximately £200k with no mortgage) with my elderly (and also sick) Mother - who lives there - the home itself wasn't in jeopardy.
We now need to transfer Dad's half of the house into my name, however have been told that we would be better putting this half 'in trust' so that if and when my Mother suffers the same fate, the State won't be able to take the house from her to pay for her care.
I have also heard however that setting up a Trust is quite expensive and wonder if it might be better to just transfer the whole property into my name (my Mother is happy for this to happen) to avoid any complicated process and expensive Solicitor fees and she can just continue to live there.
There is no other family to speak of - only myself and my Mother. Also I have never lived in the property and do not myself currently own a property.
Could you advise on the best way to move forward please?
We also learned that because he co-owned his home (worth approximately £200k with no mortgage) with my elderly (and also sick) Mother - who lives there - the home itself wasn't in jeopardy.
We now need to transfer Dad's half of the house into my name, however have been told that we would be better putting this half 'in trust' so that if and when my Mother suffers the same fate, the State won't be able to take the house from her to pay for her care.
I have also heard however that setting up a Trust is quite expensive and wonder if it might be better to just transfer the whole property into my name (my Mother is happy for this to happen) to avoid any complicated process and expensive Solicitor fees and she can just continue to live there.
There is no other family to speak of - only myself and my Mother. Also I have never lived in the property and do not myself currently own a property.
Could you advise on the best way to move forward please?
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Comments
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How is/was the home owned? Joint Tenants or Tenants in Common.How's it going, AKA, Nutwatch? - 12 month spends to date = 2.31% of current retirement "pot" (as at end March 2024)0
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If your mother gives away assets to avoid care fees, that is called deliberate deprivation, and the local authority can come after the assets.
From a moral standpoint, why do you think that (hardworking) UK taxpayers should pay for your mother's care if needed, rather than your mother who could afford to pay herself?I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0 -
HappyHarry wrote: »If your mother gives away assets to avoid care fees, that is called deliberate deprivation, and the local authority can come after the assets.
From a moral standpoint, why do you think that (hardworking) UK taxpayers should pay for your mother's care if needed, rather than your mother who could afford to pay herself?
You do, of course, raise a valid point, although £30,000 is not going to go far SHOULD she need a care home in the future and we indeed hope she won't. Since her half of the property is going to pass to me anyway in her Will (as there are no other family members), I am interested to learn more about the side of setting up a trust.0 -
If your dad had left his half of the home to you it would be protected. It's too late now to try to stop the house being used for care fees if your mum needs nursing.0
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If your dad had left his half of the home to you it would be protected. It's too late now to try to stop the house being used for care fees if your mum needs nursing.
Quite right - my parents wouldn't hear of it when I suggested when father was still alive, now mother upset that they didn't become tenants in common as she has discovered that other relatives have. Our next move will be post retirement - planning to sort it then0 -
Malibusmash wrote: »My elderly Father recently fell ill and needed to go into a care home, however he passed away just before this occurred. During the process, we learned that because he had £30,000 in savings (over the £23,250 care cap), he would have to pay the full cost for the care home fees.
We also learned that because he co-owned his home (worth approximately £200k with no mortgage) with my elderly (and also sick) Mother - who lives there - the home itself wasn't in jeopardy.
We now need to transfer Dad's half of the house into my name, however have been told that we would be better putting this half 'in trust' so that if and when my Mother suffers the same fate, the State won't be able to take the house from her to pay for her care.
I have also heard however that setting up a Trust is quite expensive and wonder if it might be better to just transfer the whole property into my name (my Mother is happy for this to happen) to avoid any complicated process and expensive Solicitor fees and she can just continue to live there. it's too late for that, that would be transparent deprivation of assets
There is no other family to speak of - only myself and my Mother. Also I have never lived in the property and do not myself currently own a property.
Could you advise on the best way to move forward please?
Incorrect, as has been pointed out, had your father left his half to you, then his half would be protected. Her half would not be, and has also been pointed out, it's too late now as it's transparently deprivation of assets.
To answer your last question, there isn't really a best way to move forward because you'd need a time machine.0 -
Understood. Many thanks. Back to planning to funeral.0
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Malibusmash wrote: »Understood. Many thanks. Back to planning to funeral.
Sorry, didn't realise it was as so recent, my commiserations.0 -
Commiserations on your recent loss Malibusmash.
Might a deed of variation be possible to pass your late father's half of the house to you?If your dad had left his half of the home to you it would be protected. It's too late now to try to stop the house being used for care fees if your mum needs nursing.
Suggest you seek legal advice.0
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