Cookie policy
Follow this topicFollow this topic Q&A » Savings

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

marko
by marko 12 February 2013  |  Comments 2 comments  |  Love Love  0 loves

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.

Report

Enjoyed this? Show it some love

Twitter
General

Comments (2)

  • MikeGG1
    Love rating 881
    MikeGG1 posted

    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

    Posted on 12 February 2013 | Love Love  1 love Report
  • David60
    Love rating 0
    David60 posted

    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..

    Posted on 13 February 2013 | Love Love  0 loves Report

Post an answer

Sign in or register to post an answer.

Something you're dying to ask... or answer?

Register with lovemoney.com to start asking and answering questions on Q&A.

Get started now

Sign in for a better Q&A

Registered already? Great! You can just sign in to ask and answer questions.

Sign in
W3C  Thank you for using Three Kings