is it possible to just change the title deeds or sell house to her two sons for a small amout the reason being if she had to be taken into a old folks home the goverment can sell house to pay for her keep in old folks home
2007-02-09 03:19:33 · 8 answers · asked by j123g111 1 in Business & Finance ➔ Renting & Real Estate
If your mother has transferred or sold the house then the Government will not then be able to sell it to pay for an old folks home. Her two sons would have to sell it and use the funds. No doubt her sons are honest and devoted people but we have instances where the children have been sold the house by their elderly parents and then basically thrown the parents out on to the street or refused to finance a nursing home place.
Your mother should take professional legal advice because at present the house is probably her greatest financial asset and she shouldn't give it up, sell it, remortgage or join an equity release scheme unless she has fully considered all the possibilities (many of which might involve a visit from the tax man or making your mother less financially secure).
If the intention is to use the house to pay for nursing home care later on then there shouldn't be any problem with the house remaining in her own possession until that time comes - then the local authority can handle all the details rather than you paying legal fees, etc to sell or transfer it.
Selling a house at below value is dodgy if you do it to avoid Stamp Duty - the Inland Revenue have a database of house prices and if the sale goes through at a greatly reduced price they will come after you for the Duty. Similarly, selling the house to avoid Death Duties later on won't work either.
2007-02-09 03:23:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There are inheritance tax laws and tax laws that make this not advisable. Go to CAB and ask them. I don't think that this is advisable. Also look at releasing some capital in the house - be a little wary on this one as there are some sharks out there.
Also ask Saga - they may have some information.
It's a common problem and there are legal solutions that don't land the sons with a large tax bill - just you need legal/financial advice.
2007-02-09 03:29:45 · answer #2 · answered by Biz Guru 5 · 1⤊ 0⤋
Talk to a lawyer. That is what my mom is doing. It is very possible that she will wind up in a nursing home as she has survived cancer twice now. The lawyer said that it will have to go in a trust or something a specific amount of years before she were to go into the nursing home otherwise the state could still take it.
Good Luck!
2007-02-09 03:24:11 · answer #3 · answered by Jo 6 · 0⤊ 0⤋
Consult a solicitor(free ones in every town ask at library or citizens advice).this is a tricky area what with the rules on nursing homes capital gains and inland revenue.You will need a solicitor anyway if you do manage to effect a transfer.
2007-02-09 03:27:37 · answer #4 · answered by Xtine 5 · 0⤊ 0⤋
i'm so sorry you and your mom are having the variety of problematical time. you elect some counselling and help. Is there all people at your college (counselor or instructor) who you are able to desire to speak to? somebody who could want that can assist you you and your mom mend your relationship (a friends mom, an aunt or grandmother) you have a superb to stay in a house with the two your mom or dad. you may no longer be out on the line. Do you have a church you bypass to (consistent with probability a pastor or somebody there can help) Please attain out to an person on your life. you do no longer could face this on my own. good luck, i'm hoping it works out.
2016-11-02 23:47:12 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Not as straightforward as that. If you try and evade care costs by selling the house cheap or giving it away, within 7 years of needing residential care, the local authority can recover costs. It's worth taking legal advice on this one.
2007-02-09 03:29:39 · answer #6 · answered by Anonymous · 1⤊ 0⤋
My late mother suffered that fate and had to pay for two years care as she owned her house at the time she became ill.
My understanding of this situation is that it could be described as a contrived situation and possibly 'deprivation of capital' ....... I was very angry when my mother had to pay mind you and of course it is all morally wrong but you cannot win some times against bureaucracy. You must take advice on this one, it may be worth it.
2007-02-09 03:33:51 · answer #7 · answered by Anonymous · 0⤊ 1⤋
yes you will need to get a solicitor to do this but you buy the house for a small fee, like 1p then rent it back to your mother for a small fee on a fixed term lees, (99 years for 1p)
we have recently been through this with my nan
2007-02-09 03:24:43 · answer #8 · answered by jim G 2 · 0⤊ 1⤋