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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10536
Experience:  Barrister 17 years experience
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Both of my parents are in care homes and I want to rent out

Resolved Question:

Both of my parents are in care homes and I want to rent out their house to part-fund their care. I have an LPA (financial and property) for both of them. What is the best way to arrange things so that they are not burdened with any admin or liabilities and I am not liable to pay tax on rental income. For example could I be the landlord rather than one or both of them but with the rent going to one/both of them whichever is most tax efficient.
Is this possible, or is there a better way of organising things?
Is there anything else I need to watch out for?
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. Dear *****, the first thing you need to be aware of, is that as holder of a LPA, you are simply the agent of your parents when it comes to renting out their property. In no way can you be liable for tax as you don't own the property and the monies aren't for your benefit as a donee of a LPA cannot profit from his position.
Expert:  Buachaill replied 1 year ago.
2. Secondly, whilst you can handle any administration of the rental by acting as agent for your parents and being the nominee landlord, I would advise that you get a policy of insurance to cover any liabilities arising from the property rental. In this way, you will insulate your parents from any potential liabilities from renting out the property.
Expert:  Buachaill replied 1 year ago.
3. So long as you act as nominee landlord you can handle all the day to day aspects of the rental. Whilst any tax issues arising will be dealt with by you filing returns in relation to the rent for your parents. Otherwise, the rental will be straightforward. It is the same as renting a property out, except you are now agent for your parents in all aspects. The policy of insurance should cover you as well as your parents.
Expert:  Buachaill replied 1 year ago.
4. Dear *****, please RATE the Answer as unless you RATE the answer your Expert receives no payment for answering the question with the website taking all the money you have paid.
Customer: replied 1 year ago.
Thanks,
Is there anything I need to do, in addition to holding the LPA, in order to formally become an agent / nominee landlord for my parents, or is it a case of simply acting in that capacity and ensuring that the arrangement is correctly described in things like insurances, tenancy agreement etc?
Expert:  Buachaill replied 1 year ago.
5. In law an Attorney, which you are holding a Lasting Power of Attorney is the agent of the person who gives the power of attorney. There is nothing more that needs to be done. By signing the power of attorney you were made agent in law, and in fact, of your parents. You can act as their nominee landlord without any further legal requirement, as in law you are now their agent. So you just need to ensure everything is in order and handle the letting properly.
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Customer: replied 1 year ago.
Great, thanks - rating on it's way.