Can my parents put there house in my name so they avoid it being sold to pay for residential care if they need

i know what you mean

im trying to persuade my parents to sign their house over to me to avoid inheritence tax but they arent having it at the moment

nigelshiftright

So you want the old folks to be forced into a Medicare facility instead of spending the money from THEIR own house on their comfort and pleasure in a really nice home?

That's just swell of you.

shirley v

if they put it in your name then i hope you will be looking after them when they are old

olivo

I agree with Nigel! You basicallly want your parents residential care to be paid for by the state...instead of them paying for a bit more comfort with THEIR money!! State care is the basic---no frills-- but there are many private, homes that are graded like hotels, with little extras to make them feel at 'home' and round the clock medical attention. And this is what you want for them, after a lifetime of raising a family?? Hopefully your children will grow up , work hard, and make their OWN money, not take from their grandparents when they need it for their old age. No doubt you will convince your poor parents this is the best thing for them to do (for you not them). Shame Shame Shame on you.

PATRICIA MS

Of course they can put it in your name, its just that elder homes can go back 3 years to look for assets. Check it out!

st.abbs

It has to be done 3 or 5 years prior to your parents going into a nursing home.
If they are scared you may put them out once they have signed it over, do a back to back, that is you write a document which turns the house back to them for Â£1.00 no one need know about this unless you try to throw them out.

Eve

If you're 33 then most likely your parents aren't senior citizens
so-to-speak, as yet. So why are you planning for their demise already? I hope some of the other answerer's aren't right about your intentions and that you AND your parents are just
smartly planning for the future. Your parents do know about your plans....right?

sensible_man

Their care would be reduced to a Govt payed residence. Not the best of places. You may find that transfers of property will be traced back a number of years (3-5) as they are with bankruptcy cases.

futuretopgun101

Yes you could, but if you did it now, they would have to live for 7 more years outside the residential home before it could not be counted as one of their assets.
The government reckons its fair to be able to look back 7 years at any large sums of money, any property you have got rid of, any companies and say no, we will have that to pay your fees, even if its somebody elses livelyhood or family home now.

my2cents

The goverment goes back 33-36 months of their assets when it comes to medicaid. . You may need to seek the professional advice of an attorney as to how to work this out. It could be a simple as putting your name on the deed or establishing a trust.Find a lawyer who deals with wills, estates, trusts or who is also an accountant/financial planner. Good luck.

gary b

Do it soon !!! I had my mom's put in a trust!! Do it now!!! get a "good" estate attorney!!

Just an American

Yes, but there is (in the US) a waiting period that must expire before the house (or any assets) are protected.

Not sure if this is a state or federal regulation, but in my state it was 2 years. Check with an attorney; there are several methods to accomplish this in addition to an outright sale.

Use a knowledgeable attorney. There are tax consequences for you if a transfer is not set up using the most advantageous method.

The Badger!

with regard to iht you can gift up to 5grand one off then Â£300 per year also if you put the house in your name then your parents have to stay alive for 7 years before you qaulify for nil IHT

however with each year that passes the amount of tax charged will decrease untill the 7 year mark when it becomes no IHT!

Mark

It is a matter of Federal law in the United States. Congress has established a period of ineligibility for Medicaid for those who transfer assets. This period of ineligibility is determined by dividing the amount transferred by what Medicaid determines to be the average private pay cost of a nursing home in your state. However, state Medicaid officials will look only at transfers made within the 36 months prior to the Medicaid application (or 60 months if the transfer was made to certain kinds of trusts). Thus, if you can plan ahead and make transfers well in advance of needing Medicaid (three to five years, depending on where you are transferring the money), the transfers will not affect Medicaid eligibility.

The bad thing for a recipient of a residence is that if you sell a house which you received by gift, you will have to pay federal income tax using your parents' basis rather than the fair market value at the time of the gift.

For best protection, hire an "elder law" attorney. Don't rely solely on advice from YAHOO! Answers.

Middleclassandnotquiet

You might try this in the finance section-a financial planner might help.

I believe if the house is put in your name now, you you would also receive the low original value of the house as a tax basis. And possibly pay taxes on the difference when the house is sold(a lot depends on what taxes are at that point). Right now, there is no inheritance tax and if there was, it would probably not affect you-only estates of over 1to 3 million. So inheritance is preferential, tax-wise.

The government, I believe, looks at assets held(even if sold) within 2 years and perhaps more.

Trusts for the kids seem possible.

Ahdunno

at the moment tax starts at about Â£250,000, it will rise as house prices do, you only pay tax on the bit over the threashold

if the house is in your name for 5 years then you is ok with parents

Bum Gravy.

Depends what country you are in, in UK you can but for 7 years after transfer the state can still claim it.
You are perfectly entitled to arrange your financial affairs in order to minimise your tax liability, however unethical it might appear.
You need to get professional advice though.
Any money you pay to a financial adviser will be money well spent.

Barking mad

This is not as easy as it sounds. Tony Blair and his mates saw this and closed up all the loopholes. If it can be done it will be difficult. Most people want do it to avoid inheritance tax.

Mr Sceptic

If the local authority were to challenge you, you would have to show that the purpose of the transfer was not to avoid liability for care provision. If you fail, your parents would be liable for a portion of the charges.

If your parents were to die within seven years of making the transfer, again a portion of the house value would be liable for inheritance tax, but remember, inheritance tax only applies to estates ove Â£300 000.

Now, can you explain to me why I, the taxpayer, should fund your parents' care, when they have a valuable asset in the form of a house which could fund that care?

It's not meant nastily, because in your position, I might do the same myself, but it made me think.

confucious says

if you think they will last seven years yes that will avoid inheritance tax re the nursing home bit get them to make you tenant in situte and then you will be ok you will require legal advice for both options

Cherrypicker

If your parents legally make their property over to you, 7 years must pass before it is rightfully yours. If before the 7 years are up, your parents have to go into care, their house would have to be sold, to pay for their care.

Local authorities pay for older people's care, if they have no assets, or large saving accounts. However, most Councils' now only assist people to go into care if their needs are "critical" and they real do apply this rule.

Don't know much about inheritance tax, sorry...

Wunout O

Have your parents change the ownership from joint ownership to each of them owns 1 half of the house. Then when one dies you can inherit thier half which will probably be under the tax threshold so no tax. Then when the other dies likewise. No inheritence tax to pay and all perfectly legal. As for Nursing homes. They can't force the sale of the house if one partner is still living in it. So unless they both have to enter a Nursing home at the same time the house is safe.

Boiled Egg

Isn't it a travesty that you are faced with this situation? I'm sure your parents have paid their taxes and national insurance all these years, but are faced with having their assets stripped if they need residential care. Yet if someone comes into this country to seek asylum, they can sponge off the state regardless. We should be looking after our own first, and turning away these leeches. They have contributed nothing and therefore deserve nothing. I really feel for you and your parents. What is the point of tax and national insurance if we cannot look after our elderly citizens free of charge, or at least have the government pay for their upkeep?

Jade B

lets say your parents move and still wanna own the house, they can put it in your name and you can live there

blktan23

go see an elder law attorney. do not trust people on yahoo answers or do it your self the stakes are 2 high. dont worry about estate tax it is only for people with more than 2 million dollars.

HARRI303

my father worked for 44 years in 1 job never claimed dole ,social or anything else, paid all his tax and insurance and took out a mortgage and paid it off. you think he should have to pay for care home when other people are entitled who have not what a joke

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