My wife and I are planning to buy a house, to share with her parents. Some of their capital will be used in the purchase. If they have to go into a nursing home, is this capital taken into account to be used to fund their care.Is there a time limit after which the capital cannot be taken into account?
2006-12-01 03:48:53 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I think its possible that the share of the property would be taken into account if or when they go into a home and I don't think there is a time limit. I would strongly suggest you go see a solicitor urgently and get some answers, etc., before you sign anything, please.
2006-12-01 03:53:11 · answer #1 · answered by DeeDee 4 · 0⤊ 0⤋
Yes, thier share would be taken into account if they are formally mentioned on the deeds and own part of the house. This is regardless of how long you jointly own the house.
It is a common approach to try to avoid inheritance tax or paying care home fees. After a little research most people realise there is no loophole there.
One way to free up thier capital is for them to gift the money to you. You then pay captial gains tax, and it must be done many years before they go into care. There is no defined limit but they can consider any transfer "avoidance" if they think its suspisious. Norrmally 15 years is safe.
So, in summary, if you jointly own a home and money is needed for care, you could be made to see the house. This risk remains for as long as your parents on on the deeds
2006-12-01 12:01:24 · answer #2 · answered by Michael H 7 · 0⤊ 1⤋
That will depend upon whose name(s) is (are) on the deed. Speak with your solicitor before proceeding.
2006-12-01 12:25:35 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋