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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25440
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Good afternoon,I am 73 this year,in good health but wonder

Customer Question

good afternoon,I am 73 this year,in good health but wonder whether it`would be a good idea to give my son power of attorney (if he agrees,of course) and
sign my house over to him also , provided I am able to continue living in it as long as I am able or , for any reason in the future need to move to a care-home.
An estimated idea of the cost of setting this up would also be useful.(legal expenses)
Thank you for any advise and
Kind regards
peter lubi
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.
Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience. May I ask if the property is owned solely by you please and whether there is any mortgage on the same?
Customer: replied 2 years ago.

Hello Joshua,

Yes to both questions,and I confirm that I will,of course continue to meet all my obligations!

Expert:  Joshua replied 2 years ago.
Thank you. the making of the lasting power of attorney is a very sensible move generally because it ensures that if you were to lose the capacity to make decisions for yourself due to unpleasant conditions such as dementia or a medical condition such as a coma, the personal persons you want to make decisions on your behalf in that situation have the legal right to do so. If you do not make a power of attorney, in such situations such as the above, the position is that your doctors or social services must make decisions on your behalf on what is known as a best interests basis under the provisions of the mental capacity act. Your close family have a right to make their views known and these views must be taken into account by doctors of the local authority when making a best interests decision but ultimately they do not have to follow them if no power of attorney is in place.In terms of who should appoint as your attorney, but as a matter entirely for you but it probably goes without saying that the individual or individuals you appoint should be entirely trustworthy to you and the individual or individuals you would wish to make decisions on your behalf you could not make them yourself. some people like to appoint more than one attorney to act jointly or a replacement attorney in case anything happens to your primary choice but again, such decisions are for you to make.In terms of wwhere to place your property in your son's name, generally speaking this is a very bad idea for a number of reasons. I assume for this purpose you only have one child, but if you do have more than one child, and you simply place the property in your son's name, your other children may be disinherited from any right to a share of your property. Where you only have one child, it is still generally a poor idea to simply transfer the property into his name. Firstly, if anything were to happen to your son, you may find that your property ends up with somebody else - such as his future or current spouse or another third party email provided for in any well he has made. Second you may be made to move out by your son or any such party may acquire the property from your son due to his selling it or due to anything happenng to your son. Thirdly you may wish to sell the property and move or raise funds on the property using an equity release mortgage - you would not be able to do so without your son's permission (or in the event the property had been transferred to somebody else, without their permission). Finally your son may have to pay capital gains tax on any gain the property makes from the date you transfer it to him and the date it is sold. Whilst it is in your name it will be exempt from capital gains tax. It may be that none of these things would happen but the point is the future is unknown and you leave yourself very exposed in simply transferring the property to future events that may or may not occur. It is not a comfortable postion to be in.if you wish to protect the property against potential future care fee claims which is a concern of many people and a principal motivation for individuals to consider transferring properties to their children, rather than simply transferring the property into your son's name with the possible above consequences, based on what you say you may wish to consider creating something called a life interest trust for part of or all of the equity in your home. You can put a percentae ot the whole property into such a trust which trust provides that you may continue to live in the property for as long as you wish, and if you want, that the proeprty can be sold and a new property purchased that better suits your needs in the future, but that after your death, the property passes to individuals you specify - for example your son.The benefit of such a trust is that you have to go into care, providing it has been prepared properly, and providing you know of no circumstances where you are likely to have to enter into care at the time you transfer your property into trust, the local authority will not be able to make a claim against that portion of the property you placed in trust. In addition, if the trust is prepared so is that it depends upon your death, then the property will still benefit from your capital gains tax exemption meaning that your beneficiaries will not owe any capital gains tax on any gain in the value of your property.You may decide to place your entire property into trust but equally, you may decide just to place a percentage of the value of your property into trust. Placing just a percentage of the property into trust rather than the whole of it can have its advantages because firstly you are not tying up all your property into a trust - remember you can use the property but you would not be able to sell the property and spend the money if you placed in trust which is a restriction.Accordingly a life interest trust can give you some signficicant advantages if you are concerned about care fees in particular but great care must be taken that it is set up professionally by a properly qualified person and that you are fully advised before you decide to sign anything.Costs of setting up a life interest trust by a solicitor will typically be between £500-1000 + VAT.I hope the above is of assistance? If you have no further questions for now I should be very grateful if you would kindly take a moment to click to rate my service to you today or just reply back to let me know if the above is helpful. Your feedback is important to me. If there is anything else I can help with please reply back to me I'd be very grateful
Joshua and other Law Specialists are ready to help you
Customer: replied 2 years ago.

Thank you Joshua

this is all I wanted to know at this point,now I know how to proceed.

kind regards.

Expert:  Joshua replied 2 years ago.
A pleasure - I am glad I could assist.