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Discussion Starter · #1 ·
Hi dudes, before I start - I just want to say that this is a serious subject, and I want to know your past experiences with what I'm about to tell you. So before you go giving bad advice without actually knowing about it, think! (I am aware that I am the king of bad advice!!)

Aquiring your Nan's house...

Okay, I have a Nan. She's great. She lives in Barry in south Wales. She owns her house and has done for about 50 years. There is no mortgage and she owns it 100%. Only her, no grandad. Just her.
She is 76 now and hasn't made any arrangements for the house when she dies apart from the house being left to my mum in her will.

Thats all fine and dandy, but people just don't 'die' any more.

Old folks are usually kept alive in a home on a cocktail of drugs. If they own their own house at the time they get accepted into a care home, their house gets sold off by (I'm guessing) the govt to help subsidise paying for the care home (can someone clarify this. I may be completely wrong, but I'm sure she will end up losing her house, or at least a part of it in some way/shape/form)

She's very healthy, 76 and doesnt take any pills, goes shopping in Cardiff on sat and sunday with my mum every weekend without fail, walks her dog about 3 miles a day (probably faster than I could!!).

The problem with all of this means that she's very self-sufficient, and she's very healthy. Also - very stubborn. She refuses to talk about doing something with the house before the govt get their grubby hands on it. She doesn't want that to happen, but I think her stubborness is because she thinks it will be a long drawn out procedure and very confusing to sign the house over to my mum.

She's got at least 10 or 15 years left in her, but you never know whats round the corner.

She has mentioned on a number of occasions that she'd like to move into a small serviced bungalow (granny flat style) as the stairs are getting harder to climb. they are f*cking steep mind!!

Has anyone on here been in the same situation? What would the best thing to do be here as not to lose any houses / money / friends?

Sorry if its not very clear, and I think that I should just set up a meeting with her, my Mum and me with a local recommended solicitor.
But I want to know what you guys have ACTUALLY done...

Thanks

Paul
 

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I think its down to assests and savings. When being assessed for care if your nan has savings or house (With equity) she will have to fund her own care. If for some reason she had no savings and the house did not belong to her ;) she would have her care paid for by the state.

Before anyone jumps on the band wagon slating why should we pay for all these oldies care, chances are they have been paying and working most of there life and paid taxes for it. So why not make the most of all that tax you have paid.

Don't take this as gospel though and may need further investigation.
 

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Hi dudes, before I start - I just want to say that this is a serious subject, and I want to know your past experiences with what I'm about to tell you. So before you go giving bad advice without actually knowing about it, think! (I am aware that I am the king of bad advice!!)

Aquiring your Nan's house...

Okay, I have a Nan. She's great. She lives in Barry in south Wales. She owns her house and has done for about 50 years. There is no mortgage and she owns it 100%. Only her, no grandad. Just her.
She is 76 now and hasn't made any arrangements for the house when she dies apart from the house being left to my mum in her will.

Thats all fine and dandy, but people just don't 'die' any more.

Old folks are usually kept alive in a home on a cocktail of drugs. If they own their own house at the time they get accepted into a care home, their house gets sold off by (I'm guessing) the govt to help subsidise paying for the care home (can someone clarify this. I may be completely wrong, but I'm sure she will end up losing her house, or at least a part of it in some way/shape/form)

She's very healthy, 76 and doesnt take any pills, goes shopping in Cardiff on sat and sunday with my mum every weekend without fail, walks her dog about 3 miles a day (probably faster than I could!!).

The problem with all of this means that she's very self-sufficient, and she's very healthy. Also - very stubborn. She refuses to talk about doing something with the house before the govt get their grubby hands on it. She doesn't want that to happen, but I think her stubborness is because she thinks it will be a long drawn out procedure and very confusing to sign the house over to my mum.

She's got at least 10 or 15 years left in her, but you never know whats round the corner.

She has mentioned on a number of occasions that she'd like to move into a small serviced bungalow (granny flat style) as the stairs are getting harder to climb. they are f*cking steep mind!!

Has anyone on here been in the same situation? What would the best thing to do be here as not to lose any houses / money / friends?

Sorry if its not very clear, and I think that I should just set up a meeting with her, my Mum and me with a local recommended solicitor.
But I want to know what you guys have ACTUALLY done...

Thanks

Paul
Short answer, cos thats all I know.

She could live 15 years, or have a stroke tomorrow.

There are a couple of options.

a) She stays were she is. When she dies the value of the house gets added to the estate. The Tax man will Ride you if it is over the threshold.

b) She stays where she is and hands the house to her Children. As long as she lives another 7 years then there will be no Death duty based on the house.

c) She moves into a serviced appartment and rents out her house. You'll pay tax on both properties and she'll pay tax on the rent she makes from the house.

d) She hands the house over to her children, buys a serviced appartment and her children rent the house out. The rent is used to pay the mortgage on the appartment and it will be hardered to not pay duty if she dies in 7 years.

e) Hands house over to children. Children pay life insurance/assurance for 7 years which would cover the projected duty owed on house (and other parts of the estate). This is expensive but could be cheaper than duty on house. Gran stays in house till she dies.

Not quite as short as I thought.

And no matter how 'all there' she is, do not approach her with a solicitor until you've all discussed what your options are. Old people are known to be very stubbon!

Find out what she wants and go from there, as that is all that is important. It sounds like there is another option.

f) Sells house, buys serviced apartment. Lives off remaining cash until dies. You get remaining cash after that.

"You can't take it with you, and your children don't really need it."

g) Sell House. Fly her to Vegas, bet it all on red. If she wins, Buy 2 first class tickets home. If she loses, just get the one ticket......

Wiltsteve
 

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Discussion Starter · #5 ·
I like the vegas Idea!

I'm sure there is something to with 7 years going on here.. I've heard that mentioned a few times by other people.
Does it go like this?

She gives the house to my mum as a gift in 2008
in 2009 (or any time up until 2015) she get admitted to a home
The home/govt works out how much dosh my mum owes them
If she goes into care AFTER 7 years is up, my mum owes them nothing and its all paid for by taxes?

Am I right. I realise the boundaries are a little burry, but that seem like the best option. And easiest.
 

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I like the vegas Idea!

I'm sure there is something to with 7 years going on here.. I've heard that mentioned a few times by other people.
Does it go like this?

She gives the house to my mum as a gift in 2008
in 2009 (or any time up until 2015) she get admitted to a home
The home/govt works out how much dosh my mum owes them
If she goes into care AFTER 7 years is up, my mum owes them nothing and its all paid for by taxes?

Am I right. I realise the boundaries are a little burry, but that seem like the best option. And easiest.
100% Honest advice.

Speak to an accountant who knows his Inheritance Stuff.

Volkszone is a great place for advice and suggestion but on things as important as the wellbeing of your gran....I'd want professional (accountable) advice.

1st stop. Speak to gran and find out what she wants.
2nd stop. Speak to an accountant and find out what options are.
3rd stop. VEGAS!
 

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Just been talking about it in work...

What about - My mum buys the house off her.
Nan gets money
Mum gets house
Nan gives all the money back to Mum to pay off mortgage...

Would that work??
If your nan dies within 7 years then the the children will be liable for the money given by your nan to your mum.

It would also involve your mum being able to get a 2nd mortgage (I presume) to buy your gran's house.
 

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spend a little cash & get some advice from an accountant & solicitor.

last year my gran (90) was living in her own house, reasonably independant with the family helping out. Basically(short version) had a few problems with circulation to her leg and before we knew it she took a turn for the worse and had to have a leg amputated. She could no longer care for herself and is now in full time care costing 25k a year. The local authority gave us time to sell her house & then when it took too much time took out a charge against the property so the would be reimbursed when the sale went through.

It does piss you off a bit as she has worked/paid tax etc all her life but her quality of life is paramount. She is a bit gutted as she wanted to leave a little to the kids.

do something now before it's too late !!!!
 

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Sorry if its not very clear, and I think that I should just set up a meeting with her, my Mum and me with a local recommended solicitor.
Having worked in probate and tax & trust planning, I'd definitely recommend seeing a solicitor. Rules and laws are changing every day regarding inheritance tax planning and the rights the government has to reach into your bank/savings and just taking money for keeping old people in a home. It's a hard thing to get around and you can easily get stung if you don't get decent legal advice.
 

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My gran has allways lived with my parent (owning 1/3 of the house) when she had to go into a home at the grand old age of 98 as my parents could no longer care for her, they had a bloody nightmare sorting everything out :(

I know there is some rule about how many years after you hand something to your family you will still be liable for inheritance tax.

Have you tried your local citizens advice, they should be able to give you some ideas.

But at the end of the day dont push granny, just give her some info, if her marbles are still intact its up to her, and the last thing you want is her thinking you are all after her money :)
 

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Accountants will be the best 'few quid' you spend. VZi is great for getting stains out of carpets or identifying the correct Popes Nose but I doubt it would stand up in court ;)

I do know for example that if she hands the house or the cash over and then end up in a home-they'll come after the recipient of that csh for the payment. So it is never cut and dried.

Good luck :)
 

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When my nan moved in to a care home we sold the flat on her behalf and after all the costs ended up with £94k in the bank. Fees for the care home were £1000 a month and she was having to pay this for 5 years until she died 2 years ago. My dad has a great accountant and after the 5 years ended up with £90k still. If you know a good accountant I personally wouldn't worry unless the place is worth more than £600k as the threasehold has been moved in October. More info here http://www.thisismoney.co.uk/tax-ad...ticle.html?in_article_id=425147&in_page_id=78

I am no expert on inheritance tax but what I said about my Nans money os from my families personal experience
 

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my grandad was stubborn too, if he'd signed the house over to my dad then it would of been left to the family, as it stood he wouldnt which meant that the house was sold and the money was taken by SS for his care in a home.
 
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