DH talking about transferring our home to DSD to save care costs.

[Pleasemrstweedie]

DH and I are both early sixties, have been together 15 years and married for 13. We have no DC together but both have DC from previous relationships. The house we live in is in DH’s sole name. He bought it ten years before he met me and had paid the mortgage off by the time we got together. We have both made Wills and under the terms of his Will I have a life interest in the property ad be able to live there as long as I do not re-marry or co-habit. I can also, if necessary, buy another, more suitable property as I get older, on the same basis. On the death of the last of the two of us, the house is to be sold and the proceeds split, 90% to my DSD and 10% between my two DC. This reflects a contribution I made to refurbishment after we married. Our Wills were made eleven years ago and I think they are due for redrafting, given the fact that we have managed to stay married. I have mentioned this to DH a couple of times lately, but he’s not responded as yet.

However, if DH and I were to divorce, I could rely on my rights under the Matrimonial Homes Act, notwithstanding the terms of the Will, and I believe I would likely get more than the 10%.

Looking into the future, my understanding is that if DH needed care, the house would not be taken into account for funding purposes as long as I was still living there, and if I needed care, which is the more likely situation, then I would have no house to take into account anyway, because I only have a life interest.

DH has been talking to a friend who was able to keep his DF’s house in the family by having it transferred to other family members before care costs were incurred and now he wants to transfer his house to my DSD. He says that, as part of the deal, we would get to live there as long as we need to, presumably under a licence rather than a tenancy, but I’m really not sure that this would be a good idea. I think we might be able to show that there was no deprivation of assets as we are relatively young and healthy at the moment, but I believe it would leave me in a very vulnerable position, especially as DSD has been hostile to me through all the years I have known her.

DH seems to trust this friend who he thinks is a bit of a financial wizard, but I’d be interested to hear what others think.

His Dd would be liable for CGT on the transfer. A hefty bill if today's property prices are to go by. He may have to inform tax people, as it has implications both inheritance tax and deprivation of assets. You both need to speak to a solicitor ( one each not jointly). Your DH and his DD need to take advice from a Tax Specialist.

He is very naive if he thinks this is just a simple way to,avoid tax and carehome fees.

If it's his main residence no CGT on transfer to daughter
The thing I always think is paramount is that all the risk is on the person making the transfer and all the benefit is to the person getting the property

You are in a more vulnerable position by not owning the house and it being a step child

There is always a risk
Wills can be changed

Take proper advice yourself on your position
Look after your interests which may differ from your husband 's and certainly from your dsd

Gifting a property to a son or daughter is only tax exempt if they are living with you. If they have their own residence it is entirely different and therefore both need tax advice.

I cannot understand why someone would want to live in a care home, financed by the council, when they could have a far superior old age in a self funded home.

Why are you letting him treat your children so poorly compared to his?

You are married. You have equal right to the house.

You sound like you are being walked all over

Sofabitch - because the op's DH had paid off the mortgage on the house before he got together with op. Her only contribution was to pay for some refurbishment.

Thats irrelivant.

10+ years of marrige and the Op is expected basically nothing at 10%

I agree that you're getting a rum deal, only having a claim of 10% after (assuming you stay together) several decades of marriage.

If you put the house in DSDs name and your Dh dies... you'll be left potentially homeless.

You can't put conditions on a house sale. DSD could at anypoint decide she wants to sell.

Possibly the OP had her own property on marriage and the sale of that is her safety net and inheritance for her own children. From what is posted, the existing set up seems fair, but not the proposal to potentially make her lose her home on his death.

Sofa - it's really not irrelevant.

You are married. You have equal right to the house.

No she doesn't. Its' a myth that you automatically get half the house if you are married.

If you do this (assuming it's legally possible) and one or both of you need care, you'll then be at the mercy of the local authority as to what that care consists of - it may well be in a home you really dislike, but you'll have no choice. Or visits from a carer that are nowhere near as frequent as you would want. If you/DH are paying, then you get much more choice. And that's leaving aside the morality of getting the state to pay for care that you could afford.

I am afraid I woudl want to do this too and not let a new partner have assets which are due to my children accumuldated before the relationship. His position is logical and fair to his child in my view.
It will be far too early a transfer to be likely to be a deprivation of assets by the local authority although I very mmuch doubt he wants to transfer for that reason. More likely he wants to divorce you and this is the initial plan.

Secondly for inheritance tax he will have to pay the daughter a market rent adn survive 7 years if he is over the inheritance tax limit - most people are under it as properties not worth over it so do not assume inheritance tax is a problem or issue.

As advised above from your point of view assuming you are married this is bad news. The pre nup which is sounds like or trust might be valid and in my view is fair but if I were he I would have just lived together not taken the massive risk of divorce and financial costs of that - I don't know why he thought marrying rather than just living together was a good idea! Register at the Land Registry your right over the matrimonial home if you want to stop him trying to transfer into the daughter's name. If there is a mortgage then she will have stamp duty to pay but not otherwise.

If I were you I would go out there and earn a a lot and buy yourself a buy to let or other property so that when you die your children inherit from their mother's earnings and efforts. Never rely on men for money.

When my grandmother went into care, we were given a pamphlet about finances that basically stated that if you do this even if it is several years before you need social care, they can see what you've done and make you pay anyway. I can't remember the exact wording, but it basically implied that it's fraud and you will get caught!

I'd be concerned about doing this. Local authorities are going to start getting much stricter on this. They have to given the costs of social care.

At the moment you have to demonstrate you didn't know you were going to need care but as the population ages there's a high chance most people will and the current laws won't last.

Rightly so. If your DH does this- and anyone else reading this - good luck in your spit and sawdust dump of a Local Authority funded (IF they will even fund it as you've conned them) care home!