I want to help my vulnerable sister

[NigellaAwesome]

My DSis is very, very unwell. She has 2 DC, and can't work due to her illness - she will only deteriorate. She has severe mobility problems.

She lives in a tiny housing association house, and still shares a room with her 8 yo son as her teenage DD has the other room. The house is really unsuitable, as it has steep stairs, an upstairs bathroom, and I think the damp in the house exacerbates her condition. She is on a list to get a different house, but has been for ages with no sign of movement. The only alterations the HA have made is to add rails on either side of the stairs.

I just don't know how to best help her. I have a bit of capital that I was thinking of using to buy a house through a limited company to rent to her, but I couldn't buy the house outright. My DM also has some capital that she could put in, in lieu of any inheritance. If my DM was a shareholder in the limited company, could that be ring fenced so the shares could be kept in trust for DSis's DC? Should I be posting in Legal? How can I get specialist advice on this? Should I be speaking to a solicitor?

I just don't know enough to know whether it is the right thing to do, but I worry about her so much, and would love to see her living somewhere with enough space which meets her needs.

There are strict rules on renting to close relatives. usually I think you have to have rented it out before otherwise it's seen as a contrived tenancy. I'm not 100% sure on the rules but just saying make sure you check everything out if she is claiming housing benefit/ Universal credit.

Hi I have no advice for you on buying the house, just wanted to write to say your sister is very lucky to have you , I think it’s very sweet that you want to help your sister.

Babyroobs that's why I was thinking of buying through a limited company, but I don't know if it is far enough removed to meet the rules. There wouldn't be any profit in renting, and the capital I have is invested elsewhere, so I would be diverting it at a loss, and I know I would be sinking the capital with no prospect of ever getting it back - I want a house which will meet my DSis needs for the rest of her life.

I'm seeing my solicitor about another matter, so I will discuss it with him - I might see if I can research discretionary trusts as an alternative.

The other thing is that (and it is horrible to contemplate) when my parents pass on, they will divide their estate between me & my 2 siblings. I hate to think that my DSis & her DC wouldn't benefit from their hard earned assets, as it would all be cancelled out from her benefits. That's why I was thinking that they could become shareholders in the limited company - that it would somehow ring fence her share. My parents provide a lot of emotional support to her (and I suspect day to day financial), and I know they will worry about her in the future, and I just want to make sure she is ok.

There is a sort of Discretionary Trust arrangement you can use if leaving money to someone disabled. My parents are looking at setting one up for my son in their will. A lawyer would know about it.

Thanks Frazzled I'll look into that.

If you purchase a second property you probably need to pay stamp duty. If it will be a BTLet, most of these mortgages need a higher deposit & the interest rate will be higher. Landlord insurance may not cover unemployed person
It may be better if your family gifted her money to buy her own property in her own name
Or
Try to get her moved to a bigger HA or council property sounds a better option
Perhaps ask the HA what the process & waiting times are