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Original poster

Protecting dc s inheritance

52 replies

Travelplease · 28/02/2023 18:26

As identified in earlier thread , we dont have massess of savings .
we own the house and would like to pass this on to dc .
if we get frail and need care homes then the house would have to be sold to fund this .
is there a way that we can sign over house to dc ?
or even sign over a quarter each , so that if we ho in care at least some-of the money can go to dc ?
they are both working hard and we wd like to leave them something .
i feel guilt about asking this as i am aware it would be to help the dc and not lose the house for care fees. However, apart from child benefit neither of us have ever claimed any benefits ever .. which i am using to salve my guilt somewhat / ish .. with this plan .

OP posts:
Corsica2023 · 28/02/2023 18:36

You could sign your house over to your kids, but what then for you?

I'll set aside the moral question of getting other people to pay for your care when you get old.

So say one or both of your children marry and divorce, your house could become an asset that needs to be sold as it won't belong to you any more. If you fall out with one of your children they could boot you out of the house.

If you become incapacitated you would have to rely on the council to provide the most basic care for you. You wouldn't be able to do an equity release scheme if you needed it because the house would no longer belong to you.

That's just for starters

Farmageddon · 28/02/2023 18:39

How old are you both OP? I'm not sure how long they can go back in terms of deprivation of assets when you are being assessed, but I think it's around 7 years.
Although I believe if one of you is still living in it, then you won't be forced to sell up (someone may correct me on this).

However I would worry about transferring your property to your children's names while you still need to live in it - what if you had a falling out and they kicked you out or sold it from under you or something, or if one of them got divorced your house could then be considered an asset in their settlement. There are a lot of pitfalls to think about..I would tread carefully to be honest.

MrsBunnyEars · 28/02/2023 18:40

So you want other people to pay for your care, rather than yourself?

Not having previously had free money doesn’t make this any less dubious.

Farmageddon · 28/02/2023 18:41

Corsica 2023 also makes a good point - if you have no assets left then you will be put in a care home that the Local Authority chooses, you won't be able to pick something more suitable.
Don't you want to be able to pay for the best care when you are elderly and vulnerable? I'm sure your children would want you to have proper care when you need it.

MrsDanversGlidesAgain · 28/02/2023 18:42

I'm not sure how long they can go back in terms of deprivation of assets when you are being assessed, but I think it's around 7 years

IF councils suspect deprivation of assets, they can go back as far as they want.

Motnight · 28/02/2023 18:44

Travelplease · 28/02/2023 18:26

As identified in earlier thread , we dont have massess of savings .
we own the house and would like to pass this on to dc .
if we get frail and need care homes then the house would have to be sold to fund this .
is there a way that we can sign over house to dc ?
or even sign over a quarter each , so that if we ho in care at least some-of the money can go to dc ?
they are both working hard and we wd like to leave them something .
i feel guilt about asking this as i am aware it would be to help the dc and not lose the house for care fees. However, apart from child benefit neither of us have ever claimed any benefits ever .. which i am using to salve my guilt somewhat / ish .. with this plan .

My child also works hard and I would prefer that she doesn't end up paying for the care of people like you who are out to fleece the system.

9outof10cats · 28/02/2023 18:45

I assume you both own 50% of the house. You could each make a will leaving your share to your children so they will own 50% and your partner will own the other 50% (or vice versa, depending on who dies first) with the proviso that the living partner can live in the house for the rest of their life. I think that is what my parents have done.

MrsDanversGlidesAgain · 28/02/2023 18:45

is there a way that we can sign over house to dc ?

Leaving aside the morality of it, the house would then belong to your DCs. Who could then boot you out if they felt so inclined.

LizzieMacQueen · 28/02/2023 18:48

Your child would own a house which means they'd be subject to the second home charge when they come to buy their 'first' home. Just something to consider alongside all the rest.

RaininSummer · 28/02/2023 18:50

And also apart form the morals of this being dodgy, if adult children own your house and need to claim benefits in the future, they wouldn't be entitled to help as would have capital assets over the threshold.

DorotheaHomeAlone · 28/02/2023 18:52

Do you not feel embarrassed posting this? You’re essentially asking: how can I ensure all of you cover the cost of my care so my money goes to my kids instead. It’s immoral.

AloudAlot · 28/02/2023 18:52

Leaving aside the morality of it, the house would then belong to your DCs. Who could then boot you out if they felt so inclined.

I read about a sad case like this many years ago, a widow signed her house over to her son, he then sold it and left her homeless. She was trying to go through the courts to get something back but failed, hence it being in the newspaper.

OP why exactly do you feel you shouldn’t have to pay for your own care?
DM & siblings inheritance was a pittance after DGM spent her last 4 years in a home, but none of them begrudge her house & savings paying for her much needed round the clock care.

MrsDanversGlidesAgain · 28/02/2023 18:53

DorotheaHomeAlone · 28/02/2023 18:52

Do you not feel embarrassed posting this? You’re essentially asking: how can I ensure all of you cover the cost of my care so my money goes to my kids instead. It’s immoral.

For some people entitlement overrides embarrassment.

GnomeDePlume · 28/02/2023 18:56

The most we will be doing is making sure that joint assets are held in joint names so that the other spouse is not pursued to give over more than the cared for partner's share of any assets.

RunTowardsTheLight · 28/02/2023 18:59

There's (rightly) no easy way to do this OP.

DuvetDownn · 28/02/2023 19:01

Shame on you OP.

ClimbingRoseBush · 28/02/2023 19:02

Is your concern about them having a deposit for a house? If so, a legitimate way to do it would be to downsize your house and use the excess to gift each child enough for a deposit. You then still have the main asset to sell if you need care. Which you might not.

TrainTucker · 28/02/2023 19:02

£1 million of care home fees paid by parents so far!

WeAreBorg · 28/02/2023 19:07

Yeah you’ll have to downsize and give your kids the money now I think.

Although I’m sure your children would like their parents to end their days in a nice care home - it will be good to have the choice if/when the time comes.

1980sfookup · 28/02/2023 19:07

MrsBunnyEars · 28/02/2023 18:40

So you want other people to pay for your care, rather than yourself?

Not having previously had free money doesn’t make this any less dubious.

Why not? Who pays for benefit scroungers living rent free in council properties?

TheFretfulPorpentine · 28/02/2023 19:12

Most people don't end up in care homes. Try to focus on staying physically and mentally healthy rather than screwing the system.

DuvetDownn · 28/02/2023 19:14

Having just viewed 10 residential and nursing homes I have to say a lot of the cheapest ones (the ones the OP will move into if he/she needs one) are not great.

HolidayHappy123 · 28/02/2023 19:17

It’s called deprivation of assets: www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

HTH

TennisWithDeborah · 28/02/2023 19:18

Other posters have outlined pitfalls. I’m adding another -Capital Gains Tax when your children sell the house, which they will have to pay. It won’t be their principal residence so CGT will be due.

Kendodd · 28/02/2023 19:20

TrainTucker · 28/02/2023 19:02

£1 million of care home fees paid by parents so far!

Wow! Your parents must have had a very wealthy or lucky life to accumulate so much.