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Tenants in Common

Flashharry

Registered User
Sep 4, 2018
16
I think I already know the answer to this but, my Dad (90's) and my Mum jointly own their house. Mum has just gone into a carehome. I believe if we set up a Tenants in Common arrangement now it will be deemed as too late as it should have been done at least 7 years before Mum went into the home to prevent it being used to pay towards Mum's care home fees if my Dad, for example was to move into care himself. Is this correct? I'm guessing the only way to prevent the house being sold to pay for Mum's fees is if Dad remains living there.
 

canary

Registered User
Feb 25, 2014
13,374
South coast
The thing about tenants in common is that it allows you to leave your portion of the house to someone other than your spouse in your will .

All the while that both your parents are alive it will make little difference to funding as the house will be disregarded all the while your dad lives there - whether or not they are tenants in common or own it jointly. If they both go into a care home then the house will be considered an asset and both of them will be considered as owning half the value, whether its tenants in common or jointly. It is only once one of them dies that it changes because then the remaining spouse will automatically inherit the remaining portion of the house, but if they are tenants in common then they can leave their half to someone else eg children.
 

marionq

Registered User
Apr 24, 2013
6,131
Scotland
Perfectly put @canary . That is why as early as possible people need to get their affairs in order amongst which is the switch to Tenants in Common. If you leave it too long then the situation is as canary says.
 

nicoise

Registered User
Jun 29, 2010
1,806
I think I already know the answer to this but, my Dad (90's) and my Mum jointly own their house. Mum has just gone into a carehome. I believe if we set up a Tenants in Common arrangement now it will be deemed as too late as it should have been done at least 7 years before Mum went into the home to prevent it being used to pay towards Mum's care home fees if my Dad, for example was to move into care himself. Is this correct? I'm guessing the only way to prevent the house being sold to pay for Mum's fees is if Dad remains living there.
Ignore the reference to 7 years - that applies to gifting assets and Inheritance Tax, it is a red herring in this situation as it has nothing to do with Tenants in Common.

Here is the Gov.UK guidance on joint property ownership:

https://www.gov.uk/joint-property-ownership

And on Inheritance Tax and the 7 year rule:

https://www.gov.uk/inheritance-tax/gifts
 

witts1973

Registered User
Jun 20, 2018
731
Leamington Spa
I wish we had planned for this,45 years in the same house from birth and I will be homeless if at sometime mum goes in to a home,we hadn't thought of any of this planning for the future,it's quite easy for the LA to drag your home off you when you have dementia isn't it
 

canary

Registered User
Feb 25, 2014
13,374
South coast
Please be careful when gifting assets. Even if it is legal according to inheritance tax rules, if it leaves the person who gifted the assets without funding to pay for care then the Local Authority will look to see if it is Deprivation of Assets (DoA). This is a completely separate thing from Inheritance Tax and the LA are willing to go back more than 7 years. If they deem that DoA has taken place they will take action to get the money returned, or treat that person as if they still had the assets.