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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34288
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Dear XXXXX, As it happens our son has raised another question

Resolved Question:

Dear XXXXX, As it happens our son has raised another question after viewing your response to my first question. It is true that our primary reason to move to rented accommodation and gift our house to the children (as per our Wills) is because we are beginning to feel our age, and want somewhere with less work and maintenance to be responsible for. However our son noticed that you referred in your answer to the possibility of one of us needing care in the future and that our assets including the house would be vulnerable. So he wants to know about the implications of another scenario. We gift our two children the house. They sell the house (because our daughter needs her share of the money now) and our son and his wife buy another house with his share plus some of his wife's money, again as a holiday or home and/or buy-to-let. If WE then became the tenants, paying rent, but one of us subsequently became in need of care, would there be any liabilities on our son because part of the capital used to buy the new house came from us?
Submitted: 3 years ago.
Category: Law
Expert:  Clare replied 3 years ago.
Hi
Thank you for your question.
My name is XXXXX XXXXX I will do my best to help you
i am afraid that so far as the Local authority is concerned there is no time limit and they can simply refuse to fund your care until such time as they calculate the funds that you gave away (the house) would have reduced to £23,500.
I am sorry to have to give bad news - please ask if you need further details
Clare
Clare and other Law Specialists are ready to help you
Customer: replied 3 years ago.

We are now in our late seventies and have been thinking of downsizing from our large house for some time. There is too much work and maintenance involved. We want to act now, and gift the house, properly, through a solicitor, to our children (as in our Wills), now, as our daughter, having separated from her partner, needs capital to buy another house. Our son however, who is in better financial circumstances, would use his share, probably with some additional money of his wife's, to buy a different property which could be rented out for income or used as a holiday home.


Both my husband and I are currently in good health and as our previous JustAnswer solicitor (Thomas) advised us, could get a GP's declaration to that effect.


Are you now saying that, should something unforeseen happen in the future to me or my spouse, which necessitated admission to a care home, that the care home would have the legal right to demand that our son and our daughter sell or mortgage the houses they bought using their shares of the capital from our current home, in order to fund the care?


This is rather different from what Thomas said. So I am rather confused. Could you pass this follow-up question to him, if possible?

Expert:  Clare replied 3 years ago.
Hi
The Care home will not be able to demand anything at all - it is the Local Authority who will cause you concern when they are asked to pay for your care.
the problem is that this a subjective matter but I fear that Thomas was over optimistic about what will happen in those circumstances
You gave admitted that the move is because
" we are beginning to feel our age, and want somewhere with less work and maintenance to be responsible for" and given your age the issue of needing a Care home has to be one of the possible outcomes.
On that basis notwithstanding any certificate from the Doctor you may well face a position where the Local Authority refuse to fund your care or at best a long fight to achieve funding
You can read more here
http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS40_deprivation_of_assets_in_the_means_test_for_care_home_provision_fcs.pdf?dtrk=true
In terms of the actual question you asked provided you pay the market rent to your son then there will be no other implication
Clare