Finances

Simon65

New member
Aug 18, 2023
3
0
Good evening all ,

2nd post here , although have been lurking for a few months and found this site incredibly helpful. Appreciate everybody's experience is very different , however in some respects very similar.

My Dad has recently been diagnosed with Dementia , he is 92 and physically very fit and active. He currently lives alone and supported by his children. However we aware that more needs to be done as sadly unaware where this may go . My sister has proposed building an annex on the side of her home for my Dad, of which we all agree and that is being planned right now. We know we do not have a crystal ball on how this may develop or how quickly , but feel this is our best option for our Dad right now.

My Dad has a house which in reality is completely his , however my mum and dad ( mum passed away 8 years ago ) signed their house or put into trust their house to their children many years ago. As siblings we know this is our Dads house and at the time my parents did this for the right reasons.

My Dad also has some savings which will help with the annex conversion. However we are left with do we sell the house or rent it . All of us are lent to selling the home , but proceeds belong to our Dad. I am trying to understand the implications of this . We aware the money may well be needed later for his care . So I am trying to understand what to do with the proceeds. Or namely where to put the proceeds. I am not even sure whether 5 people can have a joint bank account , or can the sale of the house still remain in trust as it is . I know we will need to get some Financial advice , capital gains tax alone is an implication , but just wondering if anyone has had something similar.

I have just re read the above, please for one moment don't think we are a wealthily family , all thankfully keeping their head above water , but we are just a normal working class family where my parents bought a modest house and have modest savings over the years and important we get this right.

Any thoughts / experiences appreciated

Thanks

Simon
 
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sue31

Registered User
Oct 2, 2023
204
0
Medway
Good evening all ,

2nd post here , although have been lurking for a few months and found this site incredibly helpful. Appreciate everybody's experience is very different , however in some respects very similar.

My Dad has recently been diagnosed with Dementia , he is 92 and physically very fit and active. He currently lives alone and supported by his children. However we aware that more needs to be done as sadly unaware where this may go . My sister has proposed building an annex on the side of her home for my Dad, of which we all agree and that is being planned right now. We know we do not have a crystal ball on how this may develop or how quickly , but feel this is our best option for our Dad right now.

My Dad has a house which in reality is completely his , however my mum and dad ( mum passed away 8 years ago ) signed their house or put into trust their house to their children many years ago. As siblings we know this is our Dads house and at the time my parents did this for the right reasons.

My Dad also has some savings which will help with the annex conversion. However we are left with do we sell the house or rent it . All of us are lent to selling the home , but proceeds belong to our Dad. I am trying to understand the implications of this . We aware the money may well be needed later for his care . So I am trying to understand what to do with the proceeds. Or namely where to put the proceeds. I am not even sure whether 5 people can have a joint bank account , or can the sale of the house still remain in trust as it is . I know we will need to get some Financial advice , capital gains tax alone is an implication , but just wondering if anyone has had something similar.

I have just re read the above, please for one moment don't think we are a wealthily family , all thankfully keeping their head above water , but we are just a normal working class family where my parents bought a modest house and have modest savings over the years and important we get this right.

Any thoughts / experiences appreciated

Thanks

Simon
It all depends on the wording of the Will I think. I’m sure someone with more legal knowledge here may be able to help.
My parents had mirror wills, stating that their half of the property went to the 3 children, but with the condition the remaining parent retained their own half until death or into care etc.
we were advised to make sure we did this with land registry - which we did ourselves for £250.
So the house when we sell in (mums now going into care) will be 50% going into her account and the remaining 50% being split 3 ways.
 
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SAP

Registered User
Feb 18, 2017
1,690
0
Yes you definitely need financial and legal advice. A lot will depend on the wording and you need professional eyes on this.
Just wondering how the annex is going to be funded. As you have stated, your dad will very likely need care and probably residential care for which there will be a financing assessment needed to see how or who will fund this. So before anything is done you must ensure that there will be no deprivation of assets.
 

Simon65

New member
Aug 18, 2023
3
0
Thanks for replies. The annex will be funded from my Dads savings. The house was legally put in trust in 2007. We will of course take some legal advice , today is the 1st time I have heard the term 'deprivation of assets' ever used. His savings then feel very easy to show no deprivation as was used to build annex for his well being and care. Regarding house in trust to his children , I really do not know as this was done 17 years ago.

Thanks again
 

Veritas

Registered User
Jun 15, 2020
338
0
Thanks for replies. The annex will be funded from my Dads savings. The house was legally put in trust in 2007. We will of course take some legal advice , today is the 1st time I have heard the term 'deprivation of assets' ever used. His savings then feel very easy to show no deprivation as was used to build annex for his well being and care. Regarding house in trust to his children , I really do not know as this was done 17 years ago.

Thanks again
You need specialist advice on what you can and can't do - it would be a false economy not to get this before doing anything like building annexes. Even if your father didn't have dementia, at 92 the likelihood of him needing care support sooner rather than later is pretty high, and you don't want to end up with an argument about deprivation of assets. Also, the terms of the Trust need to be clarified, as this is a complex area with many pitfalls for the unwary.