Will help

[Twospaniels]

Dad is almost 82 and Mum 81
Mum is about to move into a care home. Dad to remain their home.
Mum is self funded for the care home

They are going to update their Wills as they were last done about 30 yrs ago.

Is there anything in particular they should be doing?

We realise it’s too late to leave everything to me and my sisters as they are unlikely to live for 7 yrs from now due to health conditions.

Is straight leaving to each other the way to go?

Think you are confused . They can leave property or cash etc to you and your sister in their Wills. They may need to take advice about ownership of their House, but that can be difficult if your DM has dementia.
More importantly, they may need advice about Powers of Attorney for Health and Finance

The 7 years would apply if they gave money or property to you and DSis while alive, they would need to live 7 years to take it out of consideration for inheritance tax.
I am not an expert but have gleaned this info from advice we have received recently.

We already have LPAs, 3 yrs ago.
Neither have dementia

Can you parents leave everything to you? I think (not legally trained though) that if your dad leaves everything to your Mum and goes first, what he's left will just get swallowed up paying for care.

We realise it’s too late to leave everything to me and my sisters as they are unlikely to live for 7 yrs from now due to health conditions. They can leave everything to you. And it's the sensible way to go, if you don't want it all swallowed up in care (or you want to retain control about how it's swallowed up).

as PP said, what the 7 years is about is making gifts while they're still alive. If someone expected their estate to be £450000, ie £125000 aboce the tax free allowance, then on their death, 40% of the £125000, ie £50000 would be taken as tax. So the person naturally says "I know - I'll give my children £125,000 now, and avoid any tax". So they've closed the loophole by saying if someone is trying to avoid tax by giving their money away shortly before death (and shortly is defined as 7 years), the tax still has to be paid.

I think (also not a lawyer, but have dealt with some of this recently)... If they own their house as joint tenants (rather than tenants in common), the surviving parent will automatically own the whole house on the death of the other parent - they can't each leave 'their' half to the children. So if the parent in care was the surviving parent, the house money would be liable to be used for care home fees. While they are doing the wills it might be worth seeing if they can change to tenants in common - but this might then come under deprivation of assets under the 7 year rule.

While they are doing the wills it might be worth seeing if they can change to tenants in common - but this might then come under deprivation of assets under the 7 year rule. Might come under deprivation of assets, but the 7 year rule is a tax rule.There isn't any time limit under deprivation of assets, it's about when it could be foreseen that care fees would be payable - if somebody lives in a care home for 8 years off their savings, and just before going into care passed the house to the children, the financial assessment would still regard the house value as being available for care fees even though the disposal was more than 7 years ago.

I don't think it could reasonably be deprivation of assets, but you would be advised to seek professional advice.

Yes, sorry, Dint is correct is about the 7 years not being relevant. And about seeking professional advice!

(I find Dint is generally very wise about most things.)

I find Dint is generally very wise about most things. I've been on this board for a long time and have learnt a lot from everyone. As for wisdom, I usually get a right kicking if I venture on to AIBU. You'd think I would have learnt by now

Yes beware AIBU And not wanting to embarass you further, it's when you say things taking the perspective of the elderly person that it resonates most with me (and sometimes makes me cry - but that's my issues, not your fault!).

Sorry for the slight derail, Twospaniels, how are you getting on?

@maddywest Thanks I think that may be because my father is very old, so I myself am older (and my DH is older than many of the elderlies in this thread) so I'm facing the elderly problems myself. Like the panic over loss of autonomy, the terror over the functioning of my brain, and which of my treasured possessions to keep and enjoy and which to get rid of so they're not a burden to my DC.

@maddywest
We have the Wills drafted with a Property Protection Trust.
So if one parent dies their half of the property goes to me and my two sisters. But cash, bonds, etc goes to the surviving spouse.