Is this legal? Elderly dad buying house

[BarbaraVineFan]

My elderly dad is widowed and currently lives about an hour and a half away from me and DD in his house, which he owns outright. Due to personal circumstances, I have never bought a house and currently rent. Recently Dad and I have been discussing the possibility of his selling his house and buying one in the town where DD and I currently live, and for us all to live there together. Is this possible , or is there anything dodgy about it financially or legally- for example, if my dad passes away soon after we all move in together?

Would I need to pay rent to dad, for example? I would obviously be fine with that, just want to know how we can do everything above board.

Whose name will the house be in?

Do you have siblings?

Legally you don’t need to pay your dad anything to live there.

but this doesn’t necessarily get you a stake in the house either if he dies or if he wants to boot you out.

Plus also if he needs a care home the house if it’s in his name only might need sold to cover, leaving you homeless

as others have asked siblings and a will as well as mortgage / deed info are important for future.

Which part of your Dad buying a house and you living with him do you think might be illegal?

I don’t have siblings and the house would be in his name.

We are planning on buying a house which is worth less than his current one, thereby leaving some funds for care if necessary.

Provided he's mentally capable, your dad can buy a house wherever he wants and have whomever he wants living with him.

Or are you asking about inheritance tax?

I know it’s not illegal for me to live with him! Just that I know there are rules about inheritance and wanted to make sure we are not breaking any rule. The house will be left to me on his death.

Put it in joint or your name now.

Why? To avoid inheritance tax? It’s ok, his estate doesn’t meet the threshold of £1m

I’m not sure why you think this would break any inheritance tax rules when he’s not even dead yet? Just run your plans past the conveyancer and they can tell you how
best to sort the paperwork. Also you know care can cost hundreds of thousands of pounds? Putting a small amount aside is pretty pointless.

The Inheritance Tax threshold is £325k, not 1 million.

I imagine you would want to protect your interests. Talk to a solicitor

I am not talking about a small amount.

Your name needs to go n the house as well. That way you can’t be booted out if he needs care in future.

What are the sort of numbers we are talking about OP? To know if IHT is relevant.

Care is expensive! I've been looking at fees at the moment and the average is £1200 per week so £62,400 per year. Savings will deplete at an alarming rate, especially as the house will need insuring and maintaining until it is sold as well as the care home fees. If your name isn't on the deeds you can be forced to sell the house to cover care fees and you have no idea how long your father might need care for.

I would be extremely wary of presuming this. I currently have a relative in a care home costing over £100,000 a year... Having said that, you’re currently renting anyway, so even if you did need to sell the house for care costs, you wouldn’t necessarily be any worse off than you are now?

If you like each other I’d say give it a try 🙂

Is this possible if I don’t put in any money though?

Could it be seen as deliberate deprivation of assets which is where maybe OP thought it may be illegal from if he needed care in the near future if her name was on it

It’s ok- we are in this position (pic attached)

That may well fall into the deprivation of assets category. Be very careful if you do this!

Yes exactly- I am happy for my name not to be on it. My priority is my dad

Dad’s house is worth £750,000. We are looking at buying a house worth £550,000 or thereabouts (my area is cheaper).