We are trying to support parents, one of whom has dementia. They have recently been very stressed by comments made about their house being taken away if one has to go into care. Everything that have, accounts and the hourse is inpoint names. Is it worth the expense of getting a 'tenancy in common'. They have been married for over 60 years but do not have spare cash for this sort of thing. I have been reading up and getting more and more confused. A local support officer has said there is nothing to worry about and if this happens assessments will only be made on 50% of their assets and anyway will not be payable immediately and she will not be made to move. Don't really know where to start and who to ask for the best advice but do want to go back and give her clear information as this is really worrying her and she does not need that! Pointers for a newby to this area trying to do their best would be very much appreciated. Thanks
Tenancy in Common
- Thread starter Schoolhouse
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If one has to go into care it should not affect the other during their lifetime. No one is going to make them move out of their house. Tenants in common is increasingly used to protect the property for the heirs ie you. They can each leave their half to you so that if there was a charge against your Mums half after they both died the remainder would be protected for you.
In reality even if there was a charge against the house for your Mums fees in care these could not be realised while your father was still living there and did not want to sell or alternatively if both died and you did not want to sell.
It would only be if you were willing to sell the house that the fees for a care home would be realised.
If they are making a will that is the time to ask the solicitor to change to a Tenants in common. Ring round and get quotes.
In reality even if there was a charge against the house for your Mums fees in care these could not be realised while your father was still living there and did not want to sell or alternatively if both died and you did not want to sell.
It would only be if you were willing to sell the house that the fees for a care home would be realised.
If they are making a will that is the time to ask the solicitor to change to a Tenants in common. Ring round and get quotes.
Hello and welsome to TP.
First of all, your local support officer is right. The spouse that does not have to go into care will be able to remain in the house for ever and the house will be absolutely discounted for any assessment.
Some people think that a charge will be placed on it when the surviving spouse dies. That is not so.
However, if the spouse that is not in care should die first, then the situation can change as the house will then belong solely to the person in care. If the Local Authority is involved with supplementing Care home fees, then the house will become part of the assessment.
This is where Tenants-in-Common can help. This will protect half the house if the spouse not in care shoud die first as it is presumed that a new Will will have been made, leaving the half house to others and it is not easy to sell half a house to fund fees though the LA may try to encourage it!
Changing from Joint ownership to tenants-in-common is not difficult and all that is required is for a letter of severance of the joint ownership to be made. If both parties still have some mental capacity, it makes it even easier. I had to change mine unilaterally as my husband no longer had the mental capacity to do so. I went via a solicitor but that is not essential. The most expensive part was the writing of a new will, leaving my half of the house to my daughters.
In addition only half of any capital held in joint names will be included in the LA assessment.
I hope this helps and can give some reassurance.
Just to add that if the spouse remaining in the house should wish to move, then half the proceeds will be considered as belonging to the partner in care. This does make it difficult if one should want to downsize as another property for half the value is often hard to find. I always thought it was half the equity but apparantly, no, it is half the proceeds!
First of all, your local support officer is right. The spouse that does not have to go into care will be able to remain in the house for ever and the house will be absolutely discounted for any assessment.
Some people think that a charge will be placed on it when the surviving spouse dies. That is not so.
However, if the spouse that is not in care should die first, then the situation can change as the house will then belong solely to the person in care. If the Local Authority is involved with supplementing Care home fees, then the house will become part of the assessment.
This is where Tenants-in-Common can help. This will protect half the house if the spouse not in care shoud die first as it is presumed that a new Will will have been made, leaving the half house to others and it is not easy to sell half a house to fund fees though the LA may try to encourage it!
Changing from Joint ownership to tenants-in-common is not difficult and all that is required is for a letter of severance of the joint ownership to be made. If both parties still have some mental capacity, it makes it even easier. I had to change mine unilaterally as my husband no longer had the mental capacity to do so. I went via a solicitor but that is not essential. The most expensive part was the writing of a new will, leaving my half of the house to my daughters.
In addition only half of any capital held in joint names will be included in the LA assessment.
I hope this helps and can give some reassurance.
Just to add that if the spouse remaining in the house should wish to move, then half the proceeds will be considered as belonging to the partner in care. This does make it difficult if one should want to downsize as another property for half the value is often hard to find. I always thought it was half the equity but apparantly, no, it is half the proceeds!
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Thanks
The prompt and clear responses are very much appreciated. They already have wills which we updated a few years before Dads capacity started to fail. The bungalow is small so no need for down sizing. I can appreciate the situation regarding inheritance and while I know they would love to leave something behind that is not an expectation on our part and as updating is a rather expensive business (although I will check out the fees again) I would much rather any spare cash was spent on themselves making life as easy and confortable as possible. They are an ordinary couple from a generation who throught that paying the NI for all their working years would give then a reasonable pension and were never in a position to have a private pension and additional income.
Thanks again - I already feel reassured that I can talk to people with similar concerns
The prompt and clear responses are very much appreciated. They already have wills which we updated a few years before Dads capacity started to fail. The bungalow is small so no need for down sizing. I can appreciate the situation regarding inheritance and while I know they would love to leave something behind that is not an expectation on our part and as updating is a rather expensive business (although I will check out the fees again) I would much rather any spare cash was spent on themselves making life as easy and confortable as possible. They are an ordinary couple from a generation who throught that paying the NI for all their working years would give then a reasonable pension and were never in a position to have a private pension and additional income.
Thanks again - I already feel reassured that I can talk to people with similar concerns
Hi and welcome from me too.
How refreshing to hear someone say that an inheritance is not wanted, the money should be spent on making sure the best care possible is obtained.
There are so many incorrect pieces of information that seem to float around and it can be frightening.
Saffie will have set your mind at rest that no one will be homeless if one of your parents go into care.
Jay
How refreshing to hear someone say that an inheritance is not wanted, the money should be spent on making sure the best care possible is obtained.
There are so many incorrect pieces of information that seem to float around and it can be frightening.
Saffie will have set your mind at rest that no one will be homeless if one of your parents go into care.
Jay
For anybody else another advantage of Tenants in Common is if the surviving spouse gets married again at least the deceased's half of the house would not go to the new spouse.
In theory the survivors half could go to the new spouse but on the estate I live on it says no sale. charge or transfer without the consent of both owners.
On a newer property ''or by order of the court'' is added on to the above statement.
It looks as if my father had tried to will his half to a new spouse I could have blocked the transfer as the other owner.
William
Changing to tenants in common costs about £50.00 ish, plus the cost of making new wills.
If your parents want to protect any investment in their property, then it is worthwhile doing, especially if they would like to leave anything to you, and tenants in common may protect up to 50% or more.
However, if you do not wish to benefit from inheritance, or you do not want to protect any of your parents investment, from possibly being claimed in the future by the local authority, then you do not need to change from joint owners.
