I am wondering if people could offer any advice and/or recommend any advisors they have had a positive experience with. Did you feel the cost of advice was worth it set against what it might have saved you from having that knowledge? Situation is that a parent moved in with us a year ago, letting home out for £1000 per month. Parent paying us £70 a week board and lodging, minimal care from us ( what would be reasonable amount if more) plus private carers come in that he pays for. This leaves a good surplus of income each month. Inheritance tax threshold is not an issue as has double due to being widowed but am concerned about what is allowed to gift from income ( not capital) e.g. care home - deprivation of assets, capital gains on sale of property (3 year rule?). He would like to gift what he is permitted to ( has capacity), to children and grandchildren. If we move into his home to care for him would we have to pay him rent? May rent our house out or sell ours , We are considering buying out siblings share of home when he passes and staying there permanently. Thank you
There are a lot of things to consider here, so I’ll kick things off, as I’m in the process of sorting out my own affairs, however I must stress that it’s really important to get proper legal advice in the New Year.
How old is dad? What is the nature of his disability?
If you want to protect the value of dad’s house, in case he will need residential care at a later date, then it needs to be in joint ownership.
If you want to sell your house and move into his, to care for him, then you need to buy part of the house, and get this done in such a way that the council doesn’t claim “deprivation of assets”.
In the short term, dad should be paying all his “hotel costs” at your house. Presumably he is getting Attendance Allowance? If he didn’t have money of his own, the council would take all his pension and benefits leaving him about £30 to live on. Care home fees are about £1,000 a week.
You mention siblings. They are the “fly in the ointment” in many ways!
The rules on Inheritance Tax and gifts are here
With regard to gifts to children / grandchildren during his lifetime checkout the section under “Exempted Gifts”
Thank you Bowling Bun for your reply. He is 84 and has Parkinson’s. There are 2 siblings in addition to myself. He gets attendance allowance.
Does anyone have Power of Attorney? Parkinson’s may lead to Lewy Body dementia.