Hello everyone
I'd like your views on a problem. I know that everyone on TP will give an honest opinion.
I hold joint power of attorney with my siblings for my parent.
Their view is that we rent parents house, and do deferred payment arrangement with the council to cover the substantial shortfall.
My view is that we sell the house, invest the proceeds. Even at the low rates today, the interest income is more than the rental income, particularly since there is substantial work to be done to the house, to be paid for by my parent, to get it into a rentable condition, the work is not necessary if we sell.
Long term, selling is best too. The dpa only covers 80% of the valuation of the house, so the funds run out quicker, plus there's interest charges and so on to add. And no guarantee of either house prices rising or tenants being available to rent.
The quandary is - as an attorney the decision to be made is solely what is in the best interests of the donor. Which would clearly to be sell. Or am I just being too strict in my interpretation?
Views gladly received. Thanks.
I'd like your views on a problem. I know that everyone on TP will give an honest opinion.
I hold joint power of attorney with my siblings for my parent.
Their view is that we rent parents house, and do deferred payment arrangement with the council to cover the substantial shortfall.
My view is that we sell the house, invest the proceeds. Even at the low rates today, the interest income is more than the rental income, particularly since there is substantial work to be done to the house, to be paid for by my parent, to get it into a rentable condition, the work is not necessary if we sell.
Long term, selling is best too. The dpa only covers 80% of the valuation of the house, so the funds run out quicker, plus there's interest charges and so on to add. And no guarantee of either house prices rising or tenants being available to rent.
The quandary is - as an attorney the decision to be made is solely what is in the best interests of the donor. Which would clearly to be sell. Or am I just being too strict in my interpretation?
Views gladly received. Thanks.