Parents House Question
My parents house was transferred to me to me 10 years ago, in order to avoid losing it to care fees. They are both still alive and in fair health at 90 and 85 respectively, father and mother. I now need to use the equity in the property to raise some funds with their knowledge and agreement.
My question is if any of them were to go into a nursing home, they have no real savings to speak of, would the council authority take into account that they transferred the house to me to alleviate them paying for the care?
At present they are quite capable of looking after themselves with help from myself and family. They live in Wales.
Parents House Problems I am afraid….
The council can go back as far as they like to detect and rectify deliberate deprivation. It looks, by your own admission, pretty clear cut in this case!
So if there was no sound reason for the transfer of your parents house, other than avoiding Care Fees, they will attempt to claim back the full current value of your parents house from you, irrespective of any mortgage one it. Remember, local Councils have to pick up the tab for care fees if there are insufficient assets, and they are very short of cash. Inevitably, they are going to become far more confrontational in pursuing “hidden” assets.
A properly organised transfer (ideally into a trust such as ours) can be effective after 6 months or so, sometimes even less.
I have attached details for your information.
Do bear in mind that if you went bankrupt, your parents would be made homeless whether or not you take out this mortgage. If you get divorced, your wife would probably get half the value of your parents house, and wish to sell it! If you died, Inheritance Tax would potentially have to be paid on the value of your parents house as it is part of your estate.
Stephen Pett 0800 298 5208 = 01323 741200
Allied Professional Will Writers Ltd