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Buying a relatives house
My elderly uncle wants me to buy his house for a very small fee so he can still live there and I wont have any hassle when he dies. I am not sure how legal this is. His whole estate will be approx �240K+ and he has no other relatives
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Be very careful - it is considered to be 'wasting assets' and if he needs to go into a home, for example, the council has the right to recover the fees from you.
To give away assets, whether it is your savings or your home, in order to qualify for any benefit, is termed �deliberate deprivation�. If the local authority believes that you have deliberately deprived yourself of money, you will be treated for the purposes of the means test as if you still have it.
There are no time limits governing when someone can be regarded as having deprived her / himself of capital in order to avoid or diminish her / his residential care fees
If you give capital away less than 6 months before entering a home or while you are in a home, then section 21 of the Health, Social Services and Social Security Adjudication Act 1983 allows the local authority to claim the cost of care from the person you gave it to."
http://www.thompsons.law.co.uk/ltext/local-aut hority-care-fees.htm
I don't see how you would have any hassle on his death, if he leaves the house to you in his will. �300,000 is the current limit for nil inheritance tax.
If he did sell the house to you for a nominal fee, you would be subject to stamp duty at the value of the house, not the sale price.
If you were made bankrupt, then he could lose his home.
If you divorced, your ex would be entitled to a share of this house. If you couldn't afford it, you would have to sell.
Have a quick read of this and get proper legal advice:
http://www.property-tax-portal.co.uk/taxarticl e52.shtml
To give away assets, whether it is your savings or your home, in order to qualify for any benefit, is termed �deliberate deprivation�. If the local authority believes that you have deliberately deprived yourself of money, you will be treated for the purposes of the means test as if you still have it.
There are no time limits governing when someone can be regarded as having deprived her / himself of capital in order to avoid or diminish her / his residential care fees
If you give capital away less than 6 months before entering a home or while you are in a home, then section 21 of the Health, Social Services and Social Security Adjudication Act 1983 allows the local authority to claim the cost of care from the person you gave it to."
http://www.thompsons.law.co.uk/ltext/local-aut hority-care-fees.htm
I don't see how you would have any hassle on his death, if he leaves the house to you in his will. �300,000 is the current limit for nil inheritance tax.
If he did sell the house to you for a nominal fee, you would be subject to stamp duty at the value of the house, not the sale price.
If you were made bankrupt, then he could lose his home.
If you divorced, your ex would be entitled to a share of this house. If you couldn't afford it, you would have to sell.
Have a quick read of this and get proper legal advice:
http://www.property-tax-portal.co.uk/taxarticl e52.shtml
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