Clarification care cost calculation when house is 50% in trust to dependant child living in house

[Soli99]

Hi,

I've been getting a little confused by the whole care cost calculations and if the value of a house is included in a specific circumstance.

I care for my mother, she lives in her house but 50% of the house is in trust in my name after my father died. I own my own house but I have been living at my mothers for 18 months looking after her.

Up until now my understanding was that if she goes in to care 50% of the value of her property would be taken in to account and taken as part of her assets for the calculation. This would not be the case however if a son or daughter lived at the house and they were 16 or under or 60 or over, I'm 57.

As I am on only carers allowance and money is getting a little tight I did consider selling my house and moving properly in to my mothers house. I asked a solicitor (who drew up my fathers will) about the implications of this and he said it wasn't a good idea because if my mother went in to care I would have to move out of her house as it would potentially need to be sold as 50% would be included in the care cost calculations. So that was it, I haven't sold my house, which by the way was a doer upper that I'm still working on when I get chance.

Today I went on to my local councils website (Solihull) where there is a care cost calculator and a question it asked was 'are any dependant children living at the property' and if I selected yes it reported that the value of the property would be disregarded for the purposes of the calculation. Nothing was asked about the dependant children's age!!!

So I'm now a bit confused. If I live at the house permanently (which I own 50% in trust) and don't have my own property, would my mothers house been disregarded for care home calculations or not. Anyone have experience of this situation ?

I've not yet contacted the council as I don't want to start causing any future red flag type issues with them.

Thanks for any info.

 

[Jessbow]

You are not classed as child, nor dependant, are you? I think it means under 18's
Are you her POA?

 

[Soli99]

Yes you might be right, maybe I've miss interpreted it.

Yes I'm the POA.

 

[maisiecat]

Hi @Soli99 others will come on later with accurate advice but this is what I know. I have just changed my will to leave my portion of our house to our family. I have had to do various changes to tenancy etc and I have had to set up a trust for my husband to have a lifetime interest but the capital is protected.
If I die before my husband the house will be sold and his share will be used for his care costs. He will also receive interest from my share but the capital will be protected.
In your situation I think if the house is sold half the value will be yours. I cannot see how you can be forced to sell the house but they may accrue a charge against the house. The downside of this is you are only given a few weeks to sell before the interest becomes punitive.
As I say others will come on with good information

 

[Soli99]

Thanks @maisiecat that sounds just the same as how my late father's setup his and my mother's wills.

My concern is I reach the point financially that I have to sell my house because I can't afford the bills and upkeep on carers allowance and then move into my mother's and at some point have to move out in a short period of time. Not a great position to be in!

Thanks

 

[SAP]

@Soli99 , it could happen as you have described above so do be careful. You would not be classed as a child or dependant and unless you have a disability or reach the age of 60 your mums 50% will probably be required for her care costs. The following link explains the exceptions.

Do I have to sell my home to pay for care? | Age UK

We explain the means test and property and when you have to sell your home to pay for care. Find out more information from Age UK. Read now.

www.ageuk.org.uk

I’m not sure about this but could you sell your home and purchase your mothers 50%? I think as attorney you could in theory but you would need legal advice and information from the OPG as you can’t act for your mum if you are the purchaser.

 

[Soli99]

Thanks @SAP I did consider buying my mother's 50% but I need to look more into the tax implications of seeking my house and buying my mother's. As you mention I would need advice as I am the only attorney.

 

[nitram]

I did consider buying my mother's 50% but I need to look more into the tax implications of seeking my house and buying my mother's

No CGT if these conditions are met
https://www.gov.uk/tax-sell-home .
Just don't buy mother out before you sell.

 

[Soli99]

Ah thanks @nitram , so only have to pay the costs of selling and moving then, oh and then buying ! I've never sold a property so assumed there was some tax involved.