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selling house in dad's name to buy smaller for mum

Evieflo

New member
Aug 2, 2019
5
0
Hi, please could anybody help? My father has recently moved into a care home. He and my mother have lived in the same house for 55 years. The property is in his sole name. I have LPA and want to sell his house and buy my Mum a house closer to his care home and the family, with the proceeds of the sale. The LA have agreed there are happy with this. The house builder say they are not happy as I will be gifting the house proceeds to Mum. It is their matrimonial home so I understood it would t be a gift? Please help.
 

nitram

Registered User
Apr 6, 2011
23,366
0
North Manchester
You need informed legal advice.

I think buying the new house in your father's sole name could be a better approach avoiding many potential problems.
 

Evieflo

New member
Aug 2, 2019
5
0
You need informed legal advice.

I think buying the new house in your father's sole name could be a better approach avoiding many potential problems.

Yes, thanks. I thought that may be a better way round it. Thanks
 

Kevinl

Registered User
Aug 24, 2013
4,764
0
Salford
Hi, welcome to TP
As Nitram says you do need some oroper legal advice. The 2014 Care Act does allow a partner to move house and use all the proceeds from the sale to purchase a new property, however, as the holder of an LPA you are not allowed to benefit financially.
If your dad owns a house he should come out of the deal still owning a house so it would have to go in his name along with any equity released.
Normally couples own a house as joint tenants or tenants in common so both names go on the deeds to the new house and any equity released is split 50/50 but what happens when only one name is on the deeds, who knows?
The LA may have agreed to the house sale but did you tell them you're intending to put it in your mum's name because they could see this as a "deprivation of assets" as should your dad's money run out and you ask the LA to fund there could be an issue.
You're presumably going to use a solicitor for the conveyancing so I'd see one now and run the plan past them first. I suspect they will tell you the new house has to be in dad's name and any equity released should go in his name too but that's just my opinion, anything else would mean your mum is benefitting financially which as an LPA holder isn't allowed.
K
 

canary

Registered User
Feb 25, 2014
15,698
0
South coast
Dont forget about the money left over from the sale. I think that would belong to your dad too. And what about moving costs? Would these be coming out the money from the sale of the house. I think you definitely need expert legal advice.
 

Evieflo

New member
Aug 2, 2019
5
0
Thanks. The local authority currently pay for the care about from Dad’s contribution and our Top Up. I have a letter from them saying they are content for the house to be sold and one bought for Mum with the proceeds and any profit must be split. We are seeing a solicitor next week. Thank you
 

Shedrech

Volunteer Moderator
Dec 15, 2012
10,728
0
Yorkshire
hi @Evieflo
welcome from me too.

It may be worth contacting the OPG to get their take on this ... if you e-mail, so there's a 'document trail', their reply may help you with the builder
 

Kevinl

Registered User
Aug 24, 2013
4,764
0
Salford
Thanks. The local authority currently pay for the care about from Dad’s contribution and our Top Up. I have a letter from them saying they are content for the house to be sold and one bought for Mum with the proceeds and any profit must be split. We are seeing a solicitor next week. Thank you
Remember that his half of any equity cannot be used to pay the top up that will still have to be paid by a third party and if the capital takes him over the limits he may become self funding until he drops back below the capital limits, assuming his LA funding is means tested and not CHC or another non means tested payment, so you may need to consider to amount of capital/equity you release.
K
 

Beate

Registered User
May 21, 2014
12,152
0
London
Is this really a good idea? The house is currently disregarded from any financial assessment due to your mother living in it. As soon as it's sold the money will make him self-funding, and due to deprivation of assets ruled it cannot simply be gifted to your mother. If you buy a smaller property, it will still have to be in your father's name, and any left-over proceeds will have to go onto your father's care, safe for the last £23,250. This might be a raw deal you're inadvertently cutting for your parents.
 

Kevinl

Registered User
Aug 24, 2013
4,764
0
Salford
Is really a good idea? The house is currently disregarded from any financial assessment due to your mother living in it. As soon as it's sold the money will make him self-funding, and due to deprivation of assets ruled it cannot simply be gifted to your mother.
The house can be sold and a new one purchased for the mother to live in, selling the house and moving isn't a deprivation of assets, see the link below to the Mandatory Guidance notes to the 2014 Care Act where it examples in Annex E, section 10:
"At the time the property is sold, Max’s 50% share of the proceeds could be taken into account in the financial assessment, but, in order to ensure that David is able to purchase the smaller property, Max makes part of his share of the proceeds from the sale available.
In such circumstance, it would not be reasonable to treat Max as having deprived himself of capital in order to reduce his care home charges." and the LA have already agreed to this happening anyway so they're obviously happy that although the house is in dad's name the mother has equal rights over the property.
The issue is the ownership of the new house, put it in mum's name and she's benefitted financially as an LPA, even if you put it in joint names it could be argued that she is still benefitting although the LA have also agreed that she can keep half of any equity released so although there is no joint ownership the LA seem to be treating it although there is which is only right and proper as this old thing about only the man's name being on the deeds of a house is a historic injustice because that's how they did things in the old days.
Using the capital to buy a new house isn't gifting anything nor (according to the LA) is her keeping half of any equity released, the issue of gifting only arises if her name goes onto the deeds of the new house as far as I can see, then she has something she didn't previously have so has benefitted which is the issue.
K



https://www.gov.uk/government/publi...ce/care-and-support-statutory-guidance#AnnexE
 

canary

Registered User
Feb 25, 2014
15,698
0
South coast
although there is no joint ownership the LA seem to be treating it although there is which is only right and proper as this old thing about only the man's name being on the deeds of a house is a historic injustice because that's how they did things in the old days.

You may be right (I hope so), but if it were me Id want to check it.
 

Kevinl

Registered User
Aug 24, 2013
4,764
0
Salford
You may be right (I hope so), but if it were me Id want to check it.
Evieflo has already said in post 6 "
Evieflo, Today at 8:57 PM
Thanks. The local authority currently pay for the care about from Dad’s contribution and our Top Up. I have a letter from them saying they are content for the house to be sold and one bought for Mum with the proceeds and any profit must be split. We are seeing a solicitor next week"
So it's in writing from the LA that they've OK'd it and they're seeing a solicitor on Monday plus the link to the 2014 Care Act says it's allowed to sell the house and buy a new one, the grey area is the ownership of the new house.
If, for example the new house went into mum's name only and she passed away first, might the LA want to know how it happened, that they have to keep funding dad's care when he used to own a house and now he doesn't and they have to keep funding?
K
 

Beate

Registered User
May 21, 2014
12,152
0
London
I haven't said that she isn't allowed to sell but that selling might not be the best idea in these circumstances, that money or a house ownership cannot be gifted to the spouse, and that any surplus after sale and purchase of a new property might then have to be contributed to care costs. Currently the house is entirely safe from being swallowed up in care costs as the spouse is still living in it.
 

Havemercy

Registered User
Oct 8, 2012
147
0
Good luck with all this and I am glad you will be getting proper legal advice next week when you see a lawyer. Best wishes.