Inheritance
#1
Scooby Senior
Thread Starter
Join Date: Dec 2004
Location: Passing ...............
Posts: 13,320
Likes: 0
Received 0 Likes
on
0 Posts
Inheritance
My Uncle died earlier this week leaving behind my aunt, no kids.
My Aunt has asked me today if i would like there house as she is going into care.
Without contacting my lawyer would there be any problems doing this ?
She wants to basically gift it to me, i have said yes of course but want to get my head round it before i speak to my lawyer on monday.
Thanks
My Aunt has asked me today if i would like there house as she is going into care.
Without contacting my lawyer would there be any problems doing this ?
She wants to basically gift it to me, i have said yes of course but want to get my head round it before i speak to my lawyer on monday.
Thanks
#2
Scooby Regular
iTrader: (2)
What sort of care, and who's paying for it? If she owns the house, but has no savings/income, social services will/can force her to sell the house to pay for her care, UNLESS it's agreed that they pay for it, (unlikely).
If she gifts you the house, it'll make no difference, they will STILL require it sold to pay for her care.
Went through this with my dad before Christmas, and there really is no way round it. He died after one month in care, so he didn't have to sell his house, which made him happier.
Alcazar
Oh, and look out: If she gifts you the house, you'll probably be liable for full council tax on it, whether you already pay any or not. No rebate either, unless you are single.......
If she gifts you the house, it'll make no difference, they will STILL require it sold to pay for her care.
Went through this with my dad before Christmas, and there really is no way round it. He died after one month in care, so he didn't have to sell his house, which made him happier.
Alcazar
Oh, and look out: If she gifts you the house, you'll probably be liable for full council tax on it, whether you already pay any or not. No rebate either, unless you are single.......
#3
Scooby Senior
Thread Starter
Join Date: Dec 2004
Location: Passing ...............
Posts: 13,320
Likes: 0
Received 0 Likes
on
0 Posts
Care as in 24/7 Care homes, she is 90 & cant stay in the house herself, already had some b*stard a few weeks ago at her door wanting to buy the house, she hunted him but it took a few no's to get him to gtf.
She has saving's that will cover the care for a good few years. So wont have to sell the house.
How does it work with Inheritance Tax as the property & grounds are over the threshold ?
She has saving's that will cover the care for a good few years. So wont have to sell the house.
How does it work with Inheritance Tax as the property & grounds are over the threshold ?
#4
Scooby Regular
Join Date: May 2001
Location: East Sussex
Posts: 696
Likes: 0
Received 0 Likes
on
0 Posts
As has been said, you cannot be seen to give assets away to avoid care home fees.
In terms of IHT would need more information as to who originally owned the property also what Will if any your Uncle had. Maybe able to do a Deed of Variation if appropriate.
In terms of IHT would need more information as to who originally owned the property also what Will if any your Uncle had. Maybe able to do a Deed of Variation if appropriate.
#6
Scooby Senior
Thread Starter
Join Date: Dec 2004
Location: Passing ...............
Posts: 13,320
Likes: 0
Received 0 Likes
on
0 Posts
Its more to stop the fighting when my aunt eventually goes, she knows i will look after the property & do the right thing with it.
Care home fees as previously advised wont be an issue.
Thanks
Care home fees as previously advised wont be an issue.
Thanks
Trending Topics
#8
i know nothing about this sort of thing, could you sell your house and move in to hers when she has given it to you, would there still be taxes to pay?
i dont know, this country!!!
i dont know, this country!!!
#9
Scooby Regular
Join Date: Jan 2007
Location: in the 80's
Posts: 347
Likes: 0
Received 0 Likes
on
0 Posts
Sorry for your loss mate.
If your uncle and aunt owned the house as "joint tenants" then his share passed to your aunt automatically on his death, and your aunt is free to do what she wishes with the property (if they owned as tenants in common then his share passes in accordance with his will and probate will be required).
No problem with the house being transferred to you (on the assumption there is no mortgage) other than the issue with care home fees, if she runs out of money within 7 years of gifting you the house, the council will come after you and could force you to sell the house to cover the fees. Not sure about inheritance tax if she dies within the next 7 years, but I suspect the situation with that will be the same (i.e. it will be counted as part of her estate).
You will have issues if you need to mortgage or sell the house within the next five years but you could solve these by taking out a "deed of gift/insolvency indemnity policy" which for a house with a value of £200K would cost £200 approx.
I suppose the only other issue is whether your aunt is capaple of making informed decisions, which may be an issue if you have other family members who might make a fuss about it. She may need to be examined by a doctor who can certify that she is mentally capable.
Matt
If your uncle and aunt owned the house as "joint tenants" then his share passed to your aunt automatically on his death, and your aunt is free to do what she wishes with the property (if they owned as tenants in common then his share passes in accordance with his will and probate will be required).
No problem with the house being transferred to you (on the assumption there is no mortgage) other than the issue with care home fees, if she runs out of money within 7 years of gifting you the house, the council will come after you and could force you to sell the house to cover the fees. Not sure about inheritance tax if she dies within the next 7 years, but I suspect the situation with that will be the same (i.e. it will be counted as part of her estate).
You will have issues if you need to mortgage or sell the house within the next five years but you could solve these by taking out a "deed of gift/insolvency indemnity policy" which for a house with a value of £200K would cost £200 approx.
I suppose the only other issue is whether your aunt is capaple of making informed decisions, which may be an issue if you have other family members who might make a fuss about it. She may need to be examined by a doctor who can certify that she is mentally capable.
Matt
Thread
Thread Starter
Forum
Replies
Last Post
Flyboy-F33
Non Scooby Related
26
06 October 2003 10:40 PM