OAP BENEFITS/Housing rules

[sjones56]

My parents, who are now in their 70's live in rented accomodation and have a fair amount of savings. My husband and I are thinking of buying a second property for ourselves, then my parents can then move into our 1st property. We would not be able to afford to buy the 2nd property without selling the 1st, therefore, the idea was that my parents 'gave' us the value of the property in cash, but it would remain in our names.

We know it would not be affected by inheritence tax as their total assets would fall far below the magic figure, but would this sort of arrangement affect any benefits they would be entitled too? By giving us the value of the property, they wouldn't have much left, and I'm pretty sure they would both be entitled to the Attendance Allowance.
Also, might it affect their rights to nursing homes in the future without selling 'our' property?

Has anyone been in a similar situation? Any advice would be appreciated.

Thanks

[Mumof2]

Capital has no effect on Attendance Allowance so if they are eligible to claim ie they need help with care then they or you should complete a claim form rather then wait until they move

[baileybird]

good god no wonder there is not enough money to go round. How about they stay where they are, you stay where you are and they pay for their care if the need it as they can probably afford it with their savings which is which is what is supposed to happen. Why would they be entitled to Attendance Allowance - what is that???

As far as the money shifting - If it is allowed it shouldn't be!!!! Probably not what you want to hear but it is how I feel.