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Hi everyone,
I am hoping that you can advise me.
My mother, who is 77 years and in good health, owns her own property but 5 years ago borrowed money against the house. The debt is going up every month, to the extent that it may one day become as much as the value of the house. The property, which is her only asset to leave, is well below the IHT threshold.
I am able to pay of this debt which is approximately 40% the value of the property.
However I do not want to pay off the debt without having some ownership of the property, as I am concerned about future potential care costs for my mother and that the council would take the full value of the house to cover these costs.
I am an only child, not married, do not have any significant debts and my mother is happy to transfer the house to me. But I am not clear on a few points
1) How CGT would affect me if after my mother has gone I wanted to sell the property?
2) How would a council view the transfer of the house if she had to go into care in the future - would they see it as deliberate deprivation and want the costs from the property? (I do not live at the property)
3) Would it be better to transfer 50% of the property ownership to me and my mother has the other 50% - what is the advantage/disadvantage of doing this over me having complete ownership of the house?
Hope you can help.
Sue.
I am hoping that you can advise me.
My mother, who is 77 years and in good health, owns her own property but 5 years ago borrowed money against the house. The debt is going up every month, to the extent that it may one day become as much as the value of the house. The property, which is her only asset to leave, is well below the IHT threshold.
I am able to pay of this debt which is approximately 40% the value of the property.
However I do not want to pay off the debt without having some ownership of the property, as I am concerned about future potential care costs for my mother and that the council would take the full value of the house to cover these costs.
I am an only child, not married, do not have any significant debts and my mother is happy to transfer the house to me. But I am not clear on a few points
1) How CGT would affect me if after my mother has gone I wanted to sell the property?
2) How would a council view the transfer of the house if she had to go into care in the future - would they see it as deliberate deprivation and want the costs from the property? (I do not live at the property)
3) Would it be better to transfer 50% of the property ownership to me and my mother has the other 50% - what is the advantage/disadvantage of doing this over me having complete ownership of the house?
Hope you can help.
Sue.
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