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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34133
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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My 85 year old mother has asked me to sell her bungalow and

Customer Question

My 85 year old mother has asked me to sell her bungalow and land (paid for). What are the tax and social benefit implications. She cannot afford to keep the place in good repair and would like a better lifestyle. she would also like to give at least half any profits to me , her only spinster daughter. comments please
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.

Hello my name is ***** ***** I will help you.

What benefits is she on please? Alex

Customer: replied 1 year ago.
She has the basic oap and an additional benefit for disability income she in total gets benefits of just over £800 per week
Customer: replied 1 year ago.
Sorry £8000 per month
Customer: replied 1 year ago.
Sorry again £800 per month
Expert:  Ash replied 1 year ago.

Ok - if they are means tested then they would stop because capital would be over the £16,000 threshold.

As for tax, no tax would be payable upon the gift to you, as long as she survived for 7 years. If she dies before 7 years is up, some tax (tapered) will be payable.

But for benefits some may be means tested and they will be affected.

Can I clarify anything for you about this today please?
Alex

Customer: replied 1 year ago.
please, clearly if/when she sells she will have to live somewhere. Ideally, I would be on the look out for a small rented place near to me (for which she would be able to pay a years rent in advance). I have a 2 bedroomed council flat she could live in with me if necessary. I suppose that after any sale she would be means tested and would not get say housing benefit. Sorry for several questions but is there any limit on the amount of money she could give to me, and can you direct me anywhere giving advice on the best way of selling. ie as a property needing quite a lot of work, with approx. 1/11th acre land, or for development. I understand that basic pension is not means tested - is this correct. Maxine
Expert:  Ash replied 1 year ago.

Yes she could live with you and there is no limit on the amount of £ she can give you.

However Housing Benefit is means tested so this would be affected.

As for the property, its up to you whether you redecorate and sell, or just sell as it is.

Can I clarify anything for you about this today please?
Alex

Customer: replied 1 year ago.
One more please how do I go about finding best way to sell for max £££. We have no money to really redocarate, so would it be a case of my phoning building firms in area. Apart from the cost of employing an estate agent, are there any advantages/ disadvantages to this nb we live in NG are and have gradually become enclosed by new developments. Thanks Maxine
Expert:  Ash replied 1 year ago.

Really thats a property development question so not really a legal question. You could get a loan to redecorate as you are more likely to get a higher price that way, as there is less for someone to do.

But you could sell as is and let someone else have all the work to do

Does that clarify?
Alex

Customer: replied 1 year ago.
thanks very much
Expert:  Ash replied 1 year ago.

If this answers your question could I invite you to rate my answer before you go today, otherwise the site doesn’t pay me for the time spent with you. Thanks in advance! Alex

Expert:  Clare replied 1 year ago.

To add to the above.

You do need to be aware that if your mother requires Nursing Home Care in the future, or can no longer afford the Rent and applies for Housing Benefit then the fact that she has gifted half of the proceed sto you will be a major issue I am afraid

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