Inheritance/house/care

[Greenkit]

I'm posting this for advice for my husband

His father is 85 and has had a few falls, which has caused him to consider his future and look into writing a will.

So he has three dependants, My husband (46), and two daughters (Both in their 50s), one daughter has learning difficulties, has lived at home all her life and been cared for by husbands father and Mother (Deceased).

Husbands Father would like to leave the house to my husband and his daughter and nothing to the daughter with learning difficulties as she will need to go into care. He has never clamed any money for this daughter and has looked after her using his own means all her life.

So if he dies and the house is left to husband and his sister, and 2nd daughter goes into care, what claim will the state have on the house.

I think they will be able to claim a share to pay for costs, husband seems to think if its in the will there is nothing they can do..

Well that's complicated as in fact he has only one dependent, his daughter with additional needs. Your dh and sil aren't dependent.
He needs to see a solicitor asap about this matter. The fact he's never claimed benefits is wholly irrelevant. I would suggest he thinks asap about a placement for his dd. Her father dying and her going into care would be very traumatic. He might also have to go into care himself. In which case, has has he thought about providing care for his daughter in his own home or I should say in her own home?

This is my thoughts, he has cared for 'C' her whole life, he cant just cut her out of the will so the money wont be used to pay for her care.

However if one of the children takes on the care of their sister, they would be able to do this, and later if deemed necessary she could be placed in a care home.

I don't like discussing this really as father in law is still here. I guess he needs to speak with a solicitor and get some advice as you say.

I think he has the right plan. It is very common not to leave money to a child with difficulties like this as it messes up their state provided support.

If after the money is distributed after the death the state wants to bring some kind of challenge to the will based on the legislation allowinc such challenges a = a 1975 Act then the state can but it is very unlikely in my view that it would. I agree that getting her settled now in some care provision might be a good idea however before the father dies or may be one of the siblings wants to take her in? In fact as you say that might be best on the death and dealing with it at that point. That is probably best.

The other issue is is his estate over the inheritance tax limit.If so unless you are careful the state will take 40% whereas if he gives it away now and survives 7 years the state doesn't get a penny. He might want to write the house over to the 2 children now and if he stays in it then he should pay market rent for it - that may not work for him but it is worth doing the sums for it as if he has a very expensive house 40% of that is a massive sum to give to the state. If however he is well under the inheritance tax limit that is not something to consider yet.