Q&A

Answer a question


Do you want to follow this topic? You need to be signed in for this feature
Do you want to save this article to read later? You need to be signed in for this feature


If my father were to sign his house over to his siblings what would happen if he ever needed to go into care?

He is 78 years old and perfectly healthy. He has more than £23k in savings. We are not anticipating that he will require care so it's just a hypothetical question.

2
Answers


Do you want to answer this question? You need to be signed in for this feature

Answers




Did you really mean to say siblings rather than children? That would seem to be rather strange. I don't see what it would achieve. If someone gives away their home and continues to live there, without paying rent, it classify as a Gift with Reservation and liable for Inheritance Tax. So far as Care is concerned, the transfer could be set aside. Mike



I've just been through a similar situation with my late Father. His house was transferred to his children Nov 2011, he died May 2012 and our Solicitors have just finished preparing his Estate accounts. MikeGG1 is absolutely right, however... If appropriate your Father's Executors / LPRs may be able to utilise his late Wife's IHT allowance - see this link - http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm#1 Also - if you can prove you took responsibility for paying household / repair bills for a reasonable period prior to his death (say 2 years) this could help establish your claim to own the house. Care charges are interesting. Each County Council has its own rules regarding setting the house transfer aside. My Solicitor told me that Durham CC for example would consider setting the transfer aside if it was made within a year of his death. Newcastle on the other hand worked on 6 month. These time limits are likely to change as County Councils seek new and interesting ways to get Care money! It can get complicated and you need to do lots of reading and get a Solicitor's advice before taking any action - to avoid unintended consequences. For example if your Dad transferred the house to you and you then sold it (after his death of course) it would not be your primary residence - and you may be liable to pay Capital Gains Tax. Good luck whatever you do..