My mum is about to go into a care home near where I live. While she has savings and pension that will cover a year or so's care home fees, I will have to use her house 75 miles away as an asset to continue paying them. I have POA. I'm mulling should I sell or rent mum's house?
The obvious pros of selling are:
- lump sum in the bank, that can be drawn on for fees
- simpler once its done
Cons:
- capital gains tax due?- deciding what to do with the capital
Pros of renting it out:
- won't depreciate her assets as quickly - subsidising her care home fees
Cons of renting out:
- income tax liable on income
- hassle
Has anyone already been through this and got any advice to help?
What would you have done differently?
Thanks very much.
The obvious pros of selling are:
- lump sum in the bank, that can be drawn on for fees
- simpler once its done
Cons:
- capital gains tax due?- deciding what to do with the capital
Pros of renting it out:
- won't depreciate her assets as quickly - subsidising her care home fees
Cons of renting out:
- income tax liable on income
- hassle
Has anyone already been through this and got any advice to help?
What would you have done differently?
Thanks very much.