Family Home

[Young Foster]

Hi

I hope someone can help with this question.

We want to know if we can sign our house over to our daughter to avoid the house being sold for possible care home fees in the future?

Thank you.

[factor-fiction]

I assume you still intend to live their.
I believe the official answer is no if the local authority believes you were deliberately disposing of assets in order to avoid carehome fees. There is no 7 year rule here unlike there is for IHT. But it depends- if you hand it over now but don't go into a care home for 20 years I think you'll be okay, but if for example it is in the next 5 years then there will be a problem.
I am pretty sure I'm right but I'm not an expert so maybe someone who is can confirm the position.

[factor-fiction]

Can't believe I typed 'their' instead of 'there' in my opening sentence!


This link explains it better
http://www.direct.gov.uk/en/HealthAndWellBeing /HealthServices/CareHomes/DG_10031523

A relevant section says:
It is against the law to transfer ownership of an asset to another person specifically to avoid paying your care home fees. There is no time limit as to how far back the council can go to find out if you have given away assets to avoid paying care costs. If this is found, the council can treat you as if you still had the asset and you will have to pay for your care accordingly. If the transfer was within six months of you needing care then the council can recover the cost of your care from the person(s) who received the gift. The law states that if you've transferred an asset to another person within the six months before you get a place in a care home, your local council can make you pay your care home fees.

[factor-fiction]

I'm not sure why the text disappeared at the end of each line. I'll try again.

This link explains it better
http://www.direct.gov.uk/en/HealthAndWellBeing /HealthServices/CareHomes/DG_10031523

A relevant section says:
It is against the law to transfer ownership of an asset to another person specifically to avoid paying your care home fees. There is no time limit as to how far back the council can go to find out if you have given away assets to avoid paying care costs. If this is found, the council can treat you as if you still had the asset and you will have to pay for your care accordingly. If the transfer was within six months of you needing care then the council can recover the cost of your care from the person(s) who received the gift. The law states that if you've transferred an asset to another person within the six months before you get a place in a care home, your local council can make you pay your care home fees

[hc4361]

A potentially problematic thing to do. If she divorces or is made bankrupt your house would make part of her assets. If she were made redundant or otherwise couldn't work, she may not be entitled to certain benefits as your house would be her asset, if she doesn't live there.

[redcrx]

and (ok its extreme) you run the risk of her kicking you out if there was a disagreement.

i wonder if everyone starts doing this where the money will come from to house everyone in their retirement?

[bednobs]

i don't really understand why people would want to do this anyway! Having worked in care homes, i would MUCH rather have a choice in care home so that i could go to a nice one, rather than be stuck with what the local authority can afford for me. Going into a care home is a huge thing and anything to make it better (for example being able to afford a room to oneself, rather than sharing for the rest of your life with a random stranger, or going into one that doesent smell of pee and cabbage) surely must be a good thing! It's your money (in your house) so why not use it to make your life nicer rather than your kids!

[cassa333]

What about putting a charge on the house. Then if they did force a sale then a % of the sale price would go to the daughter anyway. Would that work?

Or how about in this depressed market she buys half the house and then charges rent. You can then 'blow the money' anyway you like. A bit like equity release but with your daughter instead???