Problem with property law and care fees

[cardiffgirl]

If a man and wife were to leave half of their property each to their special needs daughter in the event of their deaths, would she still have to pay for any care home needs from the inheritance ?

[ubasses]

Is the inheritence property or liquid assets? If the former on first death if remaining parent was living in the property no, but they could register a charge on the property to get their money when the property was sold. On second death, when she became sole owner that would be the most likely outcome.
If a Power of Attorney has been appointed and they could fund the fees from other assets or rental income from the property that would be an alternative.

[factor-fiction]

As I understand it it doesn't become the daughter's inheritance until after the parents die

[BradyJa]

Hi cardiffgirl

A man and wife could see a solicitor and ask to change the property ownership from joint ownership to tennants in common.
My mother and father did this. My husband and my father passed away the same year and my father's tennant in common share was willed to me so my mother was only left with half the house and I had the other half.
I went to live with my mother and sadly she had to go into a home 6 years later.
The social worker tried to say the house would have to be sold but I showed him Age Concern Factsheet 38 paragraph 8 and he backed down.
What this basically says my mothers share was worthless on the open market as nobody would want to buy half of a house with me living in it.
Sadly my mother passed away last year but I now own all of the house and the council could not put a charge on the property. The council had to pay most of the care fees.
If I downsized before my mother passed away the council could have taken some of the surplus proceeds.

Brady

[BradyJa]

Hi factor30

If you read what I said to cardiffgirl my fathers half share of the house was passed to me before my mother passed away and I owned half of the property.

Brady

[factor-fiction]

No, I hadn't read what you said before I posted my comment, but that's probably because I typed mine several hours earlier. However I have now read it and think that it's an idea worth pursuing. If it works though I'd have thought that most families with a little planning in this way could make sure care home fees are always avoided, so I'm wondering if there is a catch

[cathfromsaron]

if it is her ongoing and permanant home, why not become tenants in common with her now?

[factor-fiction]

I'm not sure that the fact that the daughter has special needs has any bearing on things here, although if course she needs care herself then I'm not sure what would happen to her and the house when the second parent passes away

[ubasses]

The catch for the family is that the son/daughter who is left the house on 1st death would have to live with the remaining parent, at least until they went into care and then remain in the house.
Where this case differs is, it is the daughter who will need care after the parents death, so on second death she will own the whole property and therefore be liable for her care fees from the inheritence.

[BradyJa]

Hi ubasses

In respect of the son / daughter having to live in the house I do know that even if they were not living in it the son's / daughter's share would be protected from the council taking it.
There was a clause on most land certificate's saying no sale, transfer, or charge to be taken over the property without the consent of all parties so this may stop the council taking any of the property.
Reading Age Concern Factsheet 38 paragraph 8 re joint ownership it does not say the joint owner has to occupy the property so they could keep it empty until after the parent passes away or the son / daughter could sell their own house and move in.


Brady

[ubasses]

Yes the son/daughters share would always be their's but the clause on the Land Certificate would not prevent a charge through a Court Order.
However in this instance it all appears irrelevant as both parents are leaving their half in turn to the daughter who would require the care.