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Mother in Law - house - potential care - can anyone advise

(7 Posts)
BasiliskStare Fri 11-Oct-19 17:53:38

Background is - Mother is not well but could live for some years. She has told her daughter that she will inherit her house . This is on the condition that her son and wife come to live with her , and look after her. Daughter ( and husband and a dependent - not son or daughter but a family relative ) has an HA flat which is not fit for purpose and HA managers for some years have not fixed the property . It is untenable.

There is an idea which may not work but could someone give advice

If Mother would sell her house and buy jointly with daughter and her husband , would this be a problem?

Facts are

1) Mother is 81
2) She has COPD - but this is being managed - oxygen dependent
3) Refuses to go into care home / having carers at home.
4) Mother has said she wants to leave the house to her daughter, as long as daughter and husband move into the house
5) The house is not suitably located for their jobs and other family responsibilities.
6) Daughters HA flat is problematic & therefore is thinking about options.

If mother bought a house - in joint names with her daughter and husband what would be the legal implications as and when things become more serious .

1) if she died
2) the care that daughter cannot give means she has to go into a nursing home.

So my question is , are there any tax implications or inheritance implications in this situation

Daughter does not want to do anything which may lead to a big bill later on. And if she gives up HA flat - probably not available later on.

Obviously she will go to a solicitor , but can anyone advise as to any big problems with this plan .

Thank You

OP’s posts: |
user1499775533 Fri 11-Oct-19 20:15:26

Hi, I would advice that whatever the mother does regarding buying a new property with her Daughter that she takes steps to sign the property over to her and not just in her will, because if something was to happen and she’d need to go to a care home she would have to sell her property or in this case half if she’s buying with her Daughter. I would see a solicitor to get the ball rolling. I’m in the same situation with my grandmothers property at the moment but because there was never anything put in place prior to her will she will possibly have to sell her home if it’s decided she needs nursing care. Hopefully all will get sorted out for them eventually.

CMOTDibbler Fri 11-Oct-19 20:24:36

As she is ill already, and so there is a reasonable expectation she'll need care in the future (and from the refused carers/refused nursing home I guess she has been assessed as needing care already) then I would strongly advise against this. There is nothing that can be done that would result in her care costs being disregarded, and any suggestions such as putting a house in joint names etc would be wilful deprivation of assets and the council would be able to force a sale as soon as any liquid cash ran out

DianaT1969 Fri 11-Oct-19 20:34:20

As well as deprivation of assets for paying for care, wouldn't there be inheritance tax to pay? I think it kicks in if assets were signed over/given away within 7 years of death. But Google to check. I'm no expert.

BasiliskStare Thu 17-Oct-19 16:37:42

Thank you all - I am not a solicitor but I thought deprivation of assets and inheritance tax. ( from DFILs situation. ) I think this is a idea they need to think about very very much more. Thank you all for advice - I suspect even if they went halves on the house - so equal money - my friend would not be able to afford to buy out his half. ( I do not know )

Thank you for advice I think this is a non starter for reasons given above

Thank you

OP’s posts: |
BasiliskStare Thu 17-Oct-19 16:41:59

Her half - sorry I was thinking about DFIL whilst typing. Certainly my SIL who is a solicitor said there was no way DFIL could sign over his house to her and her siblings or indeed sell it and give money away. ( He was old and had various medical conditions. )

OP’s posts: |
zsazsajuju Fri 18-Oct-19 20:53:07

If she sells it and buys a property in sil name she should be fine in no more than 7 years from an iht perspective- she isn’t reserving a benefit as they are living there to care for her. How much is the property worth? Is it in the SE?

As for deprivation of assets re care, you say she is determined not to go into a care home anyway. But ofc her daughter may not be able to care for her at home

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