The Ins and Outs of Giving Away Your Home When Going Into Residential Care

Many people fear that if they need to go into care in a nursing home will be forced to sell their home. As an Englishman's home his castle, of course, people want to ensure that their home is passed on to their children or grandchildren.

Consequently, many people make the decision to transfer his home in the names of their children. It is important that you take independent legal advice as to the implications of it, so that benefits can be brought against the disadvantages before you make the appropriate decisions.

We want to give our home to our children - are there any problems with

?

There are a number of pitfalls:

You May still be responsible for securing buildings and general maintenance. To prevent future problems, should discuss with their children and to determine who is to pay for increasing costs of home.

Your children may ask you to pay your rent. The only way around this would be a lease back in his favor, or declaration of trust of your children.
If your children become bankrupt or divorced, their ex-spouse or the trustee could claim on your home.
If your children use the house for security for the mortgage, then you could find in the hands of the Bank / Building Society should show the property.
Problems may arise if your children die before you do, and not made ​​provision in his will. You could be homeless. gift can influence their position on inheritance tax. Inheritance tax can be paid if a person dies and leaves property over £ 325,000 (tax year 2009-2010).
There are complicated tax implications if you transfer your home and still live in the property and your property, including the value of the home, worth more than £ 325,000 (tax year 2009-2010).
transmission may affect your children's capital gains tax position. If you own your own home and live there, no capital gains tax is paid upon transfer of ownership to any gain made ​​on the original purchase or acquisition price. Your children will acquire the assets at their current market value. May there be capital gains tax paid by their children when they eventually dispose of the property and they should get independent advice on the implications.
If weight behind the gift is just to avoid the Residential Care fees, then local authorities have powers to set aside gifts within a certain period is going to care in a nursing home, and they can also use the bankruptcy powers as well. Various local authorities have different views on how far back can I check.
If you are in receipt of means tested state benefits and give you your home away, the benefits agency have much further reaching powers of local authorities.

It is therefore very important to get legal advice before giving away your assets and your children should be advised to seek independent advice as well.

on what to give away half the property?

Most people own their own property as joint tenants. This means that when one of them dies the property would pass to survivors. Alternatively, you can separate your common lease, so that the property owned as tenants in common. After that, you can either give away your share in your life, or put it in trust for the next generation, or throw it your will.

This could have an important advantage to the surviving spouse needs to go into Residential Care, authorities could only take into account that person's half share of the property, and not as a whole.

How about buying a property with my children?

There May be a problem in that their children could be forced from the property, if you go to a nursing home or residential home. You'll need to carefully consider whether inter-generational household is likely to work.
It would be reasonable to legal advice that would be putting the house in trust to avoid having your name on the title deeds.

Sheltered Housing

Sheltered housing complex for more than fifty five or sixty-five present quite different problems.
These purchases are often very expensive, and there are restrictions on who can buy property, who can live there, and issues concerning pets and future sales. You'll need to check service charges and ground rent, as and when they can be increased.

You'll have to check whether the property can be occupied by your child or children if they stay with you to take care of you, or if you have a younger spouse, if he / she can continue to live there after your death . qualified buyer of the system often works, that is, you can only sell to the management company, or people of a certain age group or type. It's hard to limit the purchase price. In all matters relating to property, and should take full legal advice before making any formal decisions.