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DH on deeds or not - big age gap

(10 Posts)
peppersquint Sun 30-Mar-14 08:18:59

DH and I are in the process of looking at homes to buy - we have lived abroad for a decade (sold property in UK to buy abroad). We are now relocating back to the uK and I am working in a new full time/permanent job.

DH is 20 years older than me (mid 60s now) and we know that any mortgage will be based on my earnings and not his. We will be putting down a substantial deposit from the sale of our property abroad.

Even though DH won't be on the mortgage we always presumed we would own the new house in joint names i.e: his names would be on the deeds as well.

However after speaking to friends with elderly parents they have suggested it may not be the best approach.

They say that if DH were to get too poorly for me to care for (he's fine now by the way) and had to go into a nursing home then the property may be under threat - eg: we may have to sell to finance his care.

Does anyone know if this is the case?

What would people with more knowledge than me recommend we do?

Obviously if I were to predecease DH then life assurance would pay off the mortgage and he could inherit (or I could leave to DD if he prefrerred)

I am not trying to get out of paying care costs (should the situation arise) I just wouldn't want to lose our home to do so.

I know this is a "what if" scenario but just trying to work out what is best.

Many thanks if you have read this far!

VivaLeBeaver Sun 30-Mar-14 08:45:17

I didn't think it was the case that you could be made to sell the house to finance a care package if someone else who co-owned it was still alive and living there?

Hope not because dh is 15 years older than me and on the deeds.

mumblechum1 Sun 30-Mar-14 09:05:31

What I'd suggest is that you buy the house as tenants in common and make a will leaving each person's share in trust on a Life Interest Trust.

I started typing out a long explanation but tbh, probably quickest if you have a look at this:

www.marlowwills.co.uk/protecting-your-estate-from-care-home-fees.aspx

This covers the possibility that you die first and he goes into a home. It protects at least your share from the Local Authority.

As Viva said, the La can't force you to sell to release your husband's share if he goes into a home and you still live in your property.

Does he have grown up children btw, as if so, he may be interested in doing a life interest trust within his will to ensure that they get a share of his estate if he dies first and you then remarry, otherwise they may get nothing.

babybarrister Sun 30-Mar-14 14:26:08

Do LAs really just look at the legal title though and not the reality of the beneficial interest? Wouldn't they put a charge on the house over DH's share?

mumblechum1 Sun 30-Mar-14 15:51:55

Yes they could put a charge over either share if it isn't on a life interest trust. If they both do a LIT, on the first death that person's share is held for the benefit of his children (or whoever they choose) so at least one half of the equity is safe from the LA.

peppersquint Sun 30-Mar-14 18:26:20

Thank you all - a lot to think about!

TeenageMutantNinjaTurtle Sun 30-Mar-14 18:34:59

You can't be made to sell if an owner is still living in the property. But also there is very little you can do to protect your share as suggested above. There are some very unscrupulous "legal" firms out there offering to draw up clever wills/trusts to protect your assets from the Local Authority. Generally these aren't worth the paper they're written on. My in laws were recently scammed for £2k by a company who set up a Life Interest thing, when we had it checked out we were told it wouldn't hold up against an LA claim.

I would get proper legal advice, but I think you'll be ok having him on the title.

mumblechum1 Sun 30-Mar-14 20:09:58

As Teenage says, you do need to be careful. I recently did wills for a couple who had been advised by a so-called will writer (I checked them out and could not find them on the Institute of Professional Willwriters database) to transfer their home to their adult children to avoid care home fees.

Quite apart from the fact that the LA would have applied for the transfer to be set aside as a clear attempt to deliberately disadvantage themselves, if their children had died or divorced the house would be vulnerable and there would also have been tax implications without a tenancy agreement.

It's important to use a qualified lawyer when drawing up your will. I happen to have retired from high street practice and am now a freelance willwriter and member of the IPW but there are an awful lot of cowboys around.

UnexpectedItemInShaggingArea Tue 01-Apr-14 16:00:45

I am in a very similar position except the house and mortgage is solely in my name. I would assume that it would be disregarded for care home fees.

I see loads of threads advising SAHMs to get their name on the deeds of the house for financial security so I suppose I could be seen as unreasonable...

peppersquint Tue 01-Apr-14 21:10:13

Thanks Unexpected.. DH is happy for me to soley be on the deeds so not an issue there - maybe that is the simplest way forward - would save any hassle (I hope!)

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