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Mum’s interest house in Dad’s name

Discussion in 'Legal and financial issues' started by Stoic, Feb 10, 2019.

  1. Stoic

    Stoic New member

    Feb 10, 2019
    3
    I have only just found out that the house is in my Dad’s sole name. If he has to go into care will the local authority expect his care to be funded by 100% of the house value which would leave my mother with nothing to look after her future interests? She may need her half to pay for her own care for example.

    My mother has a LPA which has not been triggered but could be. Could she activate the LPA and put the house in joint names to protect her interest. If she were to get divorced tomorrow she would get half the value of the home so there is no question that after 60 years of marriage she has a 50% benificial interest in the property even though it is in my fathers sole name. They bought it together in 1966.
     
  2. Beate

    Beate Registered User

    May 21, 2014
    11,719
    Female
    London
    She doesn't need to do anything. As long as she lives in the house, the property is a mandatory disregard, so there is nothing to worry about here. It's good that she has LPA but please tell her not to put anything in her name as that would be classed as deprivation of assets. If she were to need care as well then the house, which is 100% not in her name, cannot be used to fund her care, although if she were to move into a care home as well, the property would then be financially assessed for your Dad's care.
     
  3. jenniferpa

    jenniferpa Volunteer Moderator

    Jun 27, 2006
    39,439
    @Beate - I wouldn't be so certain that the mother wouldn't have a claim on some part of the value of the house. She may well be considered to have a beneficial interest in it.
     
  4. Normaleila

    Normaleila Registered User

    Jun 4, 2016
    674
    She might have a claim to 50% but I don't think she can use LPA to change the legal ownership to 'joint'.
     
  5. jenniferpa

    jenniferpa Volunteer Moderator

    Jun 27, 2006
    39,439
    Oh absolutely - that would be completely inappropriate. I think the only way that could happen is if the attorney applied to the cop for a judgement. And as I say, I’m not sure that would even be necessary, because i think she already has a beneficial interest and funding guidance takes such a possibility into account.
     
  6. Stoic

    Stoic New member

    Feb 10, 2019
    3
    Just to clarify, are you saying that whilst my mother lives in the house it is disregarded as an asset and that no charges accrue against the house. What happens if she moves out does the local authority then seek to re-claim back charges against this property.

    The way I see it my mother has a beneficial interest in half the house and she may need that money for her own care at some future point. I find it hard to believe that using the LPA to put the house in joint names is a deprivation of assets as the half transferred was not really his in the first place(only on paper).
     
  7. Beate

    Beate Registered User

    May 21, 2014
    11,719
    Female
    London
    Yes, that's what I'm saying, and to my knowledge no back charges would be asked for if she moved out, only charges from that point.

    There are people who know more about beneficial interests than I but what I would say is that if your mother needed care herself and had less than £23,250 as assets, she would be funded by the local authority. She wouldn't not be able to get care.
     
  8. Stoic

    Stoic New member

    Feb 10, 2019
    3
    Ok Thanks.
     
  9. AbbyGee

    AbbyGee Registered User

    Nov 26, 2018
    21
    Female
    Portsmouth, South Coast
    Wow! I came on site tonight because of a situation not too far removed. The home my husband (P) and I live in - fully paid up & with no remaining mortgage - is in his name only. It may sound very selfish but I am looking at my own security should he need long term care. I have to be careful about broaching such subjects to him as he has become quite mistrusting and agitated about many things but ... I'm at a loss knowing what to do for the best. I may have to look at LPA sometime soon - goodness knows how that will pan out - but we really don't have the finances to start dealing with any of the legal eagles right now. What a pile of doggy-doo. It's not the future we'd planned by any means.
     
  10. witts1973

    witts1973 Registered User

    Jun 20, 2018
    710
    Male
    Leamington Spa
    That doesn't sound selfish in the slightest,I imagine you're very worried about the situation,I'm sure your home will be disregarded as you live there as his wife,I'm sure somebody else will clarify this for you later xx
     
  11. Theresalwaystomorrow

    Theresalwaystomorrow Registered User

    Dec 23, 2017
    345
    This unfair subject raises its head time and time agsin with this dreadful disease.
    Off load assets, put property in children’s names as you reach midlife to avoid this stealing from those who have saved !!!
    Once this disease gets complicated and 24hr care needed it should be funded end of.
    Steels your mind your life and your money if you got any.
     
  12. nitram

    nitram Registered User

    Apr 6, 2011
    19,043
    Male
    North Manchester
    Not forgetting to warn them of potential CGT bill when the property is sold.
     
  13. Theresalwaystomorrow

    Theresalwaystomorrow Registered User

    Dec 23, 2017
    345
    Hi @nitram
    From a tax perspective if parents lived in property all years of ownership as main residence then transferring is exempt from CGT
     
  14. nitram

    nitram Registered User

    Apr 6, 2011
    19,043
    Male
    North Manchester
    Their ownership ceases at midlife after which it is owned by children.
     
  15. Theresalwaystomorrow

    Theresalwaystomorrow Registered User

    Dec 23, 2017
    345
    Yes their own ship would cease at midlife but they would of lived in it all of Their ownership, which makes it exempt
     
  16. jenniferpa

    jenniferpa Volunteer Moderator

    Jun 27, 2006
    39,439
    And what happens when these “children” have their own midlife crisis and get divorced? Suddenly the property is part of the marital pot to be divided between the child and the ex-spouse. And what happens if the parents and children have a falling out? You can’t assume every family are all rowing in the same direction - all too often we have adult children who are more concerned in protecting their inheritance than ensure that the person with Dementia has the right care.

    Frankly I find your advice on this issue to be bad, both morally and legally.
     
  17. nitram

    nitram Registered User

    Apr 6, 2011
    19,043
    Male
    North Manchester
    As I understand your proposal the vendor (the children) would not meet this condition.
     
  18. Theresalwaystomorrow

    Theresalwaystomorrow Registered User

    Dec 23, 2017
    345
    It’s not advice it’s my opinion along with thousands of others who have worked hard and feel the same
    It’s unfair
     
  19. Normaleila

    Normaleila Registered User

    Jun 4, 2016
    674
    It's the children who would be liable to CGT when they eventually sell the house and have never lived in it while they (the children) owned it.
     
  20. Normaleila

    Normaleila Registered User

    Jun 4, 2016
    674
    I agree. I can't recommend a particular care home or IFA here, for good reasons, but I often read very dodgy advice. I don't think it should be allowed.
     

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