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JGM, Solicitor
Category: Scots Law
Satisfied Customers: 12089
Experience:  30 years as a practising solicitor.
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My house is valued at £80,000. I am 52, have health problems

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Hi. My house is valued at £80,000. I am 52, have health problems I am in receipt of ESA and DLA. I have 3 grown up children, no mortgage on the house but have debts of around £16,000. I currently have an arrangement with my creditors to only pay a nominal sum each month and have the interest frozen on the debts. I am considering selling my house to my kids, say they give me £10,000 each, they own the house and I stay in it rent free for a time, say six or seven years, by then it is likely that I shall need sheltered housing or possibly need a care home. I would pay my debts and buy stuff I need and have a holiday and maybe leave myself with 8 to 10 thousand pounds meantime. The reason for thinking about doing this is so they get my house, and it doesn't have to be sold to pay for my care in the future. I am wondering if this is legally allowed, or if it is a non starter. I am fed up of scrimping every penny and the feeling of being in debt and I think this can only be a win win situation. They, in the long term for an investment of £10,000 have 1/3 of a house worth £80,000, I don't have debts, and I still get to stay in the house I love, and when the time comes I still get cared for. Is this a feasible idea?
Many thanks in advance David Mckay
Thank you for your question.
Your idea is a good one. The only sticking point would be whether or not you have deliberately deprived yourself of your main asset with the intention of avoiding care home fees. I think this can be argued against on the following grounds:
1. You are young.
2. There is no immediate requirement for care home services at present.
3. You envisage a number of years before this will have to happen.
4. You have debts that you want to repay by disposing of the house.
5. You are seeking to manage your affairs better by disposing of the house.
For the foregoing reasons I do not think that the local authority could argue depravation of assets in the future.
Happy to discuss further.
I hope this helps. Please leave a positive response so that I am credited for my time.
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