How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Joshua Your Own Question

Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 25358
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
35043042
Type Your Property Law Question Here...
Joshua is online now

My daughter and her family live with me permanently. I own

Resolved Question:

My daughter and her family live with me permanently. I own my home with no mortgage. They would like to buy half of my home from me. How do I protect the other half of my home should I need to go into care in the future
Submitted: 1 year ago.
Category: Property Law
Expert:  Joshua replied 1 year ago.
Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I clarify whether they intend to pay you for the half share or whether this is to be a gift please? If the former, do they intend to buy at market value or undervalue?

Customer:

They would buy half of the property at half market value. I would gift them the other half

Joshua :

Thanks. Would they require a mortgage?

Joshua :

Is it your intention to gift them the other half on your death immediately?

Customer:

Yes

Joshua :

sorry should read



Is it your intention to gift them the other half on your death OR immediately?


Customer:

Immediately

Joshua :

Thanks. Based on what you say you will have cash equivalent to half the value of the property and are planning to give away the other half. Is it your intention to continue to live in the property - I believe this is the case from what you say initially?

Customer:

Yes I would remain in the property and intend to give my two sons some of the money from the sale of half the property

Joshua :

Thanks.

Joshua :

Thanks. There will a few issues with this. Firstly your daughter may have one or two difficulties obtaining mortgage finance for this transacition. She may have to approach a mortgage broker to source mortgage finance as some lenders do not like part parental gift properties. Many are happy with it thought but I just mention it for the sake of completeness.

Customer:

Thanks. Should she be successful in obtaining a mortgage, how can I protect the gifted half should I need to go into long term care if I can't self fund the care from my savings

Joshua :

In terms of what you propose you will need to be cautious. Consider that what you propose is to sell half your house, and then gift the money you receive to your son and gift the other half of the house to your daughter. This would leave you without your house and without the money you received from your daughter. This would mean that you could be asked to leave your own home - I am certain your daughter would never ask you to leave but one has to consider the unknown future. You would have to consider if god forbid anything happend to your daughter and someone else inherited what would then be her property - her partner or husband for example. However unthinkable or unlikely you should not lightly risk your security of a roof over your head as the unthinkable can and does happen to people.

Joshua :

If you were my client and you did not have substantial other assets or property besides your main house I would be advising you strongly against your proposal as it leaves you vunerable. It may be better to consider placing some of the property into a lifetime trust for your children and consider leaving the property to them after your passing. If it is important that your daughter buys into the property now, then you could make the sale to her subject to a continuing right of occupation for you but this is complicated by her needing a mortgage and so still not risk fee for you.

Joshua :

A life interest trust can have the benefit of protecting much or all of the property from care fee claims whilst allowing you to continue to reside in it and allowing it to pass to your chosen beneficiaires after your death. It can give you to some extent the best of both worlds.

Joshua :

A local solicitor will be able to assist you in setting up such a trust for your property. Essentially what happens is whatever share of the property you choose between 1-100% will go into trust and cannot be touched by the local authority if you later go into care providing you do not know of any reasons you may have to enter into care at the time you make the transfer to trust. Although you have placed some or all of the propery into trust you can however continue to live in the property free of charge for as long as you wish.

Joshua :

Is there anything above I can clarify for you?

Joshua :

Does the above answer all your questions or is there anything I can clarify or help you with any further?

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though

Customer:

Thanks. Should I put the proprty into trust for my children, can any other party force the sale of the property. For example should any of my children claim bankruptsy

Joshua :

I would not wish to tell you what you should do. It is important you make a decision you are happy with one you are in possession of all the information you need to make a decision. If you believe there is any possibility in the matter how remote that you may in the future wish to call upon some of the cash locked up in your property you may wish to decide to put in less than 100% of the value of the property into a trust. Alternatively, you can put in 100% of the value of the property but include powers and the trust whereby some of that value can be returned to you should the need arise..

The terms of a life interest trust provide that you have a right to occupy the property for as long as you wish and no other party has a claim upon that property in the trust during your lifetime including any local authority or child (bankrupt or not).

After your death, you can choose beneficiaries you wish to benefit such as your children or grandchildren in any proportions you wish just like you can in a will and the property passed to them after your death (just like it would under a will).

Joshua :

Such trusts are accordingly a popular means bh which people choose to simultaneously protect some of their assets from care fee claims whilst also safeguard their own security. There is of course no reason you cannot still have your daughter living with you - in practice nothing changes.

Joshua :

Is there anything else I can help you with or does the above answer your questions for now?

Customer:

Thanks. You have been very informative and of great help in this situation.

Joshua :

I am glad the above was of assistance.

Joshua :

Good luck with putting something in place you are happy with. Any larger solicitors office locally will have a private client department that can assist in setting up the trust.

Joshua :

If I can assist any further as the situation develops please do not hesitate to revert to me

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though

Joshua, Lawyer
Category: Property Law
Satisfied Customers: 25358
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
Joshua and other Property Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Remus2004

    Remus2004

    Barrister

    Satisfied Customers:

    2438
    Over 5 years in practice.
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Remus2004's Avatar

    Remus2004

    Barrister

    Satisfied Customers:

    2438
    Over 5 years in practice.
  • http://ww2.justanswer.com/uploads/TG/TGraham12/2012-7-17_81212_bigstockBusinessHandshake508163.64x64.jpg Thomas's Avatar

    Thomas

    Solicitor

    Satisfied Customers:

    445
    UK solicitor holding an England and Wales practising Certificate.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    42
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law.
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    4708
    LL.B (Hons), Higher Prof. Dip. Law & Practice
  • http://ww2.justanswer.com/uploads/AS/Aston Lawyer/2013-10-8_19517_JAPROFILEPICTURE.64x64.jpg Aston Lawyer's Avatar

    Aston Lawyer

    Solicitor

    Satisfied Customers:

    1869
    LLB(HONS) 20 years of experience in dealing with Conveyancing and Property Law
  • http://ww2.justanswer.com/uploads/CH/chathamchamber/2011-4-24_191833_1.64x64.jpg chatham-chamber's Avatar

    chatham-chamber

    Solicitor

    Satisfied Customers:

    828
    LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
  • http://ww2.justanswer.com/uploads/CL/clairep80/2013-8-25_191218_dreamstimexs267279822nd.64x64.jpg Clare's Avatar

    Clare

    Solicitor

    Satisfied Customers:

    286
    I have been a solicitor in High Street Practise since 1985 with a wide general experience.
 
 
 

Related Property Law Questions