Can I Sell My House To My Son To Avoid Nursing Home Fees. Thanks.

[inafix]

is this possible or am i wishfull thinking

[smurfchops]

I suppose you can sell your house to whom you wish and then rent somewhere.. But you will still have money from the sale so I am not sure if you would have to use that for a nursing home ... You might be able to sign your house over to your son now, you could still live there, it would be in your son's name.. and if you don't die in the following seven years he wouldnt have to pay capital gains tax .. . Perhaps someone could correct me if I am wrong ...

[Gizmonster]

If you sell the house to your son for the market value, then that shouldn't be a problem, as you'll have cash instead of an asset, which would be assessed the same, should you have to go into a care/nursing home.
However, if you sell it him for considerably less, or even give him the house, your local authority will consider this as, "deliberate deprivation of assets".

[Islay]

I believe that if it is thought that you sold the house they can and will come after you for the fees regardless of how many years have passed

[jennyjoan]

well Islay I have heard from a lady who works in the care home system and she has told me it is indeed 7 years

[Gizmonster]

//// well Islay I have heard from a lady who works in the care home system and she has told me it is indeed 7 years ////

.... and I can assure, that is incorrect.

The 7 years refers to inheritance tax.

The council can go back as far as they want - they'll look at all the factors, to decide if a deliberate deprivation has taken place, such as was the person fit and healthy at the time and how old were they ....

[woofgang]

and whether they posted this question on a web answer site......

[bednobs]

but then you wont have anywhere to live, plus you'll have lots of money which will be taken for the fees

[bednobs]

also if the intention is to protect his inhertance, if he has to buy the house, he has to pay for his own inheritance, If social services pay for your care you'll get much less choice about where you go, whether you get a single room etc

[jennyjoan]

although I agree with you all re your house sale has to pay for your home care fees. Can I talk about a couple (and many others) who worked all their lives from they were 16 until 70. Hubby died in February and wife is now in care. Have they not paid all their dues - superann, tax etc etc - surely some of their savings could have gone to pay for their nieces, nephews who have helped them with their care etc prior going into the home - yous all know what I am talking about.

Like I said above - what about the "people I know who never worked one hour in their lives" and they are going to get the same care.

Anybody care to explain. It does make me sad. How can it all be justified.

[johnk]

I've heard becoming ''tenants in common'' is a way to protect half you assets but not sure how it works or what's entailed

[EDDIE51]

No it would be classed as 'deprivation of assets' they would put a charge against the house which would have to be repaid when the house was sold.
I have posted on here many times that my son is the senior housing finance manager for a large London council. He has told me that he can and does go back at least 15 years to claim care fees from people who have sold their house to try to avoid paying.

[EDDIE51]

Tenants in common does not work either, as I said they register a charge , called an 'interest' on the house. This has to be repaid when the house is sold , that could be years later.

[ummmm]

You might not even need a care home!

Like Bednobs says...if you dispose of assets and assuming you didn't get caught, you'll be at the mercy of SS. They will chose where you go. They'll be no flicking through brochures looking for somewhere nice.

I assume you've worked for what you have so spend it on yourself in your old age.

I don't understand this feeling of entitlement to inheritance or why we feel we need to leave our kids something. Spend what you have on yourself while you can.

[Guilbert53]

You could of course sell your house to your son and carry on living there.

But how do you know you son would not then sell the house and throw you out on the street !

[ummmm]

Blind faith, isn't it!

[Islay]

Sorry JJ but you are wrong, you can be chased for the money if they thing you have sold your home to avoid care costs!

[Gizmonster]

I understand where you're coming from Jenny and agree - it's really frustrating where people have worked all their life, end up in a care home and end up getting screwed by the authorities.
I'm talking from personal experience here - a family friend ended up in a care home last year. She's worked all her life, house paid for and has a good pension (approx £1300 per month).
I have Power of Attorney and it's really frustrating watching the care home fees going out of her account every month, plus the house has been sold, so the cash sale is taken into account, meaning she has to pay more, as she has more savings.
If you're worried about paying care home fees later in life, the solution is to dispose of your assets in such a way that the local authority can't deem it be done in a way to deliberately avoid paying car home fees - do it early on in life when you're younger and still healthy.
If you do it when you're 60 (for example) and still healthy and you need to go into a care home when you're 80 (for example), I seriously doubt that the authorities will be able to prove that it's a case of "deliberate deprivation of assets".
If you do it when you're 75 .... well ..... good luck with that .....

[Islay]

My MIL has adamantly mentioned that she is not going into a care home and will go to Dignatas before that happens!

[ummmm]

inafix - how old are you?