Parents home in children's name

[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

[ladyalex]

Attendance Allowance is not means tested, so if they are disabled enough to claim it now, they should be claiming it. The CAB is really helpful with filling in the forms.
As to giving away their money, I think you could come unstuck with this one, probably depending on how long it would be before they needed nursing/residential care. The local authority who administers the fees etc would probably take the view that they had given it away in order to avoid paying fees. Ask the CAB about that too. They will give you accurate unbiased advice.
Have you talked this through with your parents, by the way? They may not wish to live in a home that they do not own....

[sjones56]

Thanks for your advice.

Yes my parents know all about this - I know it sounds like I'm grabbing the lot, but it was their suggestion. They have worked so hard all their lives and under difficult situations quite often, they just don't want to see everything they've work for all their lives being taken away from their family.

[bednobs]

it's not really being taken away from theirfamily though is it? the money is theirs, not yours, and if it helps them live a comfortable life, in a way that is acceptable to them then surely that is what you would want?
If (hope not) they have to go into local authority care, would you want them to have a nice choice of care they could have, or would you want them in the place ss decides, even if it is inferior quality and they hate it, but have no money to chose something nicer? if they are stuck in a place full of dribblers looking at a fish tank and sitting in pee simply cause they can't afford anything better?

[onlyme26]

i totally agree with bednobs, i think you should encourage your parents to spend some of their well earned money on making the last years of their life the most comfortable, not agreeing to take the lot,

i mean i see your point with the inheritance tax but once they give you a large amount of money there is still a certain amount of years after that the inheritance can take the tax if they pass away.

[sjones56]

Thanks for your comments. I do appreciate it sounds like I'm a 'grab all, unappreciative child', but we have gone through the nursing home scenario recently with another member of the family, and seen all her property being taken away in nursing home costs. In our area, where there is a high population of retired people, there is not much choice of homes when you need them, so quite often you have to take what you can get. What we noticed was that people who had private means were not treated any differently to people who lived there by means of benefits - which is REALLY annoying!! My parents assets would probably only keep them in a home for about a month considering how much they charge - and that's it, all gone!!

[alicebear87]

"What we noticed was that people who had private means were not treated any differently to people who lived there by means of benefits - which is REALLY annoying!! My parents assets would probably only keep them in a home for about a month considering how much they charge - and that's it, all gone!!"

Have I misundertstood, or are you saying you expect the care home to treat private patients and those who have fees paid for them differently? Seems a bit elitist?

[sjones56]

No, I'm not saying they should be treated differently, but if someone who hasn't worked and contributed anything in their working lives get the same as someone who has worked really hard all their lives and, way past their retirement age too - and also keeping these people who can't be bothered to work and then have their very hard earned money from them in their old age - is this fair?

[baileybird]

yes it is fair. Not everyone who cannot afford to pay for their old age is a lazy sponger. My grandmother never earned enough to save a penny, and never claimed anything either having worked all her life as a seamstress but by the time she needed care at 75 she had no savings left as she had lived off them and it is down to tax payers who can afford it cover their own care costs and their contributions during their working lives to help with the costs of those who cannot pay.
Why should tax payers pay for those who CAN afford it?

[sjones56]

Baileybird, your grandmother should have care and would not want to see her not getting the care she deserves - she did work - and hard I'm sure and contributed throughout her working life. My family are far from being rich - just hard working working class who have looked after the pennies for their old age. What I'm getting at are the people who don't make an effort, they live off the taxpayer all their lives - and don't lift a finger when there is nothing wrong more than lazyness stopping them from working and yet they expect care on a plate. The old saying what goes around comes around does not apply to some of these people. Wouldn't you be annoyed if you were in a care home having had to sell your house and payed all your taxes all your life after working hard and the person sat next to you never lifted a finger all their lives, lived off you the taxpayer and you were STILL paying for him or her in their old age since you were MADE to sell your house. Hmmmm

[LoftyLottie]

Actually, people who go into care homes funded by Social Services get a far worse deal than people who can afford to pay for their own care. For a start, social services only give limited funding, and in my area, this funding does not meet the costs of the cheapest care homes and families are expected to make up the difference. I have seen the anguish as elderly people have been shifted into cheaper and worse care homes when there capital runs out. Also, Social Services completely take control of the client's money - the family have no say.


My mother funds herself and in due course I will have to sell her home to meet her costs. The care home she is in is fantastic and I wish her to stay there until her time comes, so I don't resent having to sell her house to pay for her last few years with us. I don't see her house as my inheritance at all. I am really glad that she has it to fall back on. She deserves the best that she can afford and my father would turn in his grave if I didn't do my best for her.

Anyway, I would think that, unless she lives until she is about 120, there will be something left for the family.

If you could afford to keep your elderly parent/parents in a care home from your own earnings for perhaps 20 years, then that is different. But it's a large undertaking to make especially if you have kids that will be needing money for university etc.