Moving in with dependent mum - financial implications

[PurpleFlower1983]

Looking for some hypothetical advice. I understand the cost of care and am not looking to dodge this but want to know what may happen in this scenario.

My parents are both 70, dad is pretty well and is mum’s carer. Mum has significant mobility and other complex medical issues and requires round the clock care. She is cognitively capable but the amount of opioids she takes for pain means that sometimes she is ‘out of it’. Dad is amazing and provides this care.

Due to a recent health scare of dad’s we have started to talk about the future. While it always seems more likely that mum would go first, if dad did go first mum would need us to move in with carers during the day. The alternative would be a home which will not happen if she remains as she is now. Their current house is my family home, it has 4 bedrooms, one of which is adapted for mum on the ground floor. She spends a lot of her time here. The rest of the house is big enough for our family of 4.

I love our home but it is Victorian and not suitable for mum’s needs so her moving to us would not be an option.

If we sold our house and mum’s house was transferred to us would the house be taken into account if she ran out of capital if we eventually had no alternative but to put her in a home? Mum’s house is worth more than ours so funds raised from ours would be around a third less than what hers would be worth as an asset.

In this scenario my ideal would be to ultimately pool resources and opt for somewhere with a connected annexe for mum but I’m not sure what the implications of this are.

Sorry for the long post!

Have a look at age uks advice on deprivation of assets.

You could buy her houseat market value. That would be fine.

If you simply transfer it - at a financial loss to her, at a time when It's very likely she will need care - that will count as deprivation of assests. If shebcarries on living there it may also count as a gift with reservation of benefits, which has additional tax implications.

Buying a share of her house might be an option, but you'd need specialist advice on how this would affect the calculation of her assets for care. You could end up having to sell, if you're unable to buy her out at the relevant time.

Thank you, I do understand about this but I am wondering what happens if the home becomes our home too. Obviously any funds from our home would contribute to mum’s care in this scenario but what if the funds ran out and it was deemed mum’s house was worth more?

We would absolutely step up for her care with the support of carers but I’m thinking more long term implications if the funds ran out. Would our home be at risk? There would be no point keeping two homes.

She does have savings but they would quickly go I think.

See a lawyer- as your father is still alive could they own as tenants in common ie 50% each rather than joint tenants? Then if he goes first he could leave his share to you with a life interest to her. Might be worth exploring

Thank you.

Thank you, this sounds like it may be a good option to explore.