Not Sure What To Title This.

[DDIL]

If my mother was to go into a home/sheltered house

and we paid her rent to live in her house.

if she used that money to pay her home fees would that be legal?

Would we need a legal document to prove that we were paying rent?

[Barmaid]

Generally, if you are paying market rent and it covers her home fees it is perfectly legal.  Make sure you get a proper market valuation of monthly rental (I'd suggest 3 agents and take an average).  A legal document is not necessary really, but you ought to be able to show your rental going into her account monthly.  Because it is a family arrangement (subject to what I say below) a formal agreement is not strictly necessary.

Other issues that may arise are whether she has capacity to consent to this arrangement and if not are you holder of an LPA?  If you are the LPA there is a clear conflict of interest here and thus it might be sensible to run this past the OPG or Court of Protection.

Issues may arise if the rent does not cover the fees, if the rent is below market rate or if your mother needed to sell the property to pay fees.  Also when she dies, are you going to be without a home if she has not left it to you?

[DDIL]

Thank you for your help it helps a lot.

[Tilly2]

Best answer for BM?

[Peter Pedant]

doesnt mum have to pay tax on the rent as income? and then pay the care home fees?