Can I buy my mums house ?

[My bestfriend]

Hi am looking for advice , I sold my home to go live and care for my mother who has mixed dementia .
Currently my mum & dad equally own 50% for the home each !
I am living there with my children and would like to buy the house for security for my own family too , I am POA.
Can anyone tell me what is allowed and what isn’t with this kind of situation !
Thankyou in advance

 

[canary]

Yes you can buy it. It is not altogether straightforward, though, but a solicitor will know and be able to guide you through the process.

The main thing to remember, though, is that you have to pay the market price for the house - it is illegal for someone to use POA in a way that benefits themselves. You also have to make sure that the money from the sale is divided equally between your parents and must go into accounts in your parents names

The only other thing to bear in mind is that while either of your parents are living in the house it will be automatically disregarded when care is needed (either care at home or residential care ie a care home) and only their savings will be taken into account when being assessed for financial assistance. If they have more than £25,000 they will be paying the full amount.

 

[My bestfriend]

Yes you can buy it. It is not altogether straightforward, though, but a solicitor will know and be able to guide you through the process.

The main thing to remember, though, is that you have to pay the market price for the house - it is illegal for someone to use POA in a way that benefits themselves. You also have to make sure that the money from the sale is divided equally between your parents and must go into accounts in your parents names

The only other thing to bear in mind is that while either of your parents are living in the house it will be automatically disregarded when care is needed (either care at home or residential care ie a care home) and only their savings will be taken into account when being assessed for financial assistance. If they have more than £25,000 they will be paying the full amount.

That has been very helpful Thankyou for your prompt message ! Do you know if the £25.000 is money in an account in my fathers name also ?
Also do you know anything about money gifts ?

 

[Jessbow]

Money gifts are limited,

Is whoever owns the house in whatever shares willing to sell.

You say you moved in the care for your Mum, but that Dad owns 50% of it-

 

[My bestfriend]

Yes my mum & dad want me to buy it so the house stays in the family ! I already live here with my family to care for mum , My dad feels as if there money and home isn’t there own to do what they want with incase mum had to go into care and the government wanted to take some or all of what they have ! I know there are lots of rules about what you can’t do with your assets ! Just not sure what they all are it’s a mind field

 

[Galanthus]

I have heard that there are specific financial advisors for this area, and that some don’t charge for the first consultation. It might help to at least have all the dos and don‘ts set out for you, and some are very canny too at finding ways forward. Good luck.

 

[canary]

When someone needs care the LA will look at finances for that person only when deciding how much they would need to contribute. So if it is for your mum they will look at all bank accounts ISAs, shares etc in her name and 50% of accounts joint with your dad. They dont look at his accounts at all. They also dont consider the house at all so long as either your mum or your dad is living there.

Gifts will be looked at very carefully. Please dont even think about selling the house and then your dad giving away large sums from it as this is considered Deprivation of Assets and the LA can take steps to get it back again - they also have no time limit and can go back years if necessary.

There is a lot to be said for not buying the house now, but leaving their assets in the property they are living in. If your mum goes into a care home and dies before your dad, then you will inherit part of the house and no-one will come looking for care fees. The only problem will be if your dad dies first and then your mum moves into a care home - at this point neither of them will be living in the house and it will have to be sold so that her half can be used for the fees. This might be the point at which you could buy it.

 

[Shedrech]

hi @My bestfriend
these pages on the main AS site may explain the position on paying for care

Paying for dementia care in England

Dementia care isn't free, and you may need to pay for some of the care you or someone you know needs. We help you understand the different ways to pay for care, and the amount you might be expected to pay.

www.alzheimers.org.uk

the financial assessment re your mum's care:
disregards the marital home as long as she and/or your dad live there
considers her income and individual assets/savings
considers half of any joint assets/savings
does NOT consider your dad's income and individual assets/savings unless it is to ensure the spouse has enough to live on

so your dad need not worry about being forced to sell his home .... they may want to consider separating out any joint savings and possibly having separate current accounts for income to be paid into ... and keep a joint account for each to pay into monthly and from which to pay shared household bills