poppins Posted July 30, 2011 Share Posted July 30, 2011 My wife and I have seen a property in the Peak Park with a barn that could be converted into a home for my mother. On seeing this son and heir says, "great idea dad, when you and mum are as bad as my nan, me and the wife can move into the cottage, and you and mum can move into the barn". Don't you just love them? :hihi: Our friends built an addition onto there home for their daughter & her husband with the idea that when they get older they'll just swap places. Link to comment Share on other sites More sharing options...
chimay Posted July 30, 2011 Share Posted July 30, 2011 BUT if you give a house to your children and they agree to provide a home for an aged parent, then - should the gift be taxable (because you didn't live for long enough) one third of the value is tax-exempt, because the government considers that one third is 'fair reward' for providing a home fro aged parents. But if you've given your house to your children doesn't it then become one of their assets which has consequences if your off spring gets divorced? I will mention this gift idea to my kids as a possibility for our future, thank you. Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted July 30, 2011 Share Posted July 30, 2011 ...But if you've given your house to your children doesn't it then become one of their assets which has consequences if your off spring gets divorced? I will mention this gift idea to my kids as a possibility for our future, thank you. It does indeed - and it's certainly something you have to consider. There are a number of other ways in which you can reduce your inheritance tax liability - talk to your legal avisor. If you want to protect the house in the event of a divorce, then you will have to work out how you want to do that. If you have grandchildren, you could give the house to your grandchildren allowing their parents (your child and spouse) the right to live in the house (or to sell it and buy another of greater or equal value) for the duration of their lives. The idea appeals to me, not so much as a tax shelter, but because it will be many years before my son can afford to buy a house and I can afford to buy a house which is bigger than I need. If we were to buy a house and enter into an agreement with him and his partner which required them to support us (or more realistically which ever one of us survives for longest), then they would get a house to live in, we would have the security of knowing that we would have somewhere to live when we can no longer live alone and the state would have a reduced risk of having to accommodate one of us. AFAIK ,the 1/3 tax exemption (which applies in Germany) is there to encourage families to look after their aged parents and to reduce the cost to the state. It seems fairly logical. So- don't expect to see it happen in the UK anytime soon. Link to comment Share on other sites More sharing options...
kimba Posted July 30, 2011 Share Posted July 30, 2011 Your going to have your mother living with you ? What an alien concept... are you Asian ? Whats up with the nursing home and monthly visit like the rest of us English persons ?? Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted July 30, 2011 Share Posted July 30, 2011 I think that would be bit difficult ... she's been dead for 11 years. - If we'd kept the ashes in the urn, she wouldn't've taken up too much space, though. My son may well end up with his mother living with him ... and if he's really unlucky, he may end up with me living with him. That probably won't be for some years yet - long after his kids have gown up and left home. That was a fairly normal pattern where I grew up (not in Asia, nor in England.) My mother-in-law lived with us during the latter stages of her life (until she got to the point where she needed 24 hour acute medical care) and it worked pretty well. At that time, I had a house with a granny flat on the ground floor. - She had her own entrance, a bedroom, bathroom and living room (with a very small kitchenette.) She ate with us and spent some time with us - but she had her own living space for when she wanted to be on her own. - It was far cheaper than it would've been to put her in a care home (and probably more comfortable, too.) Link to comment Share on other sites More sharing options...
Benidorm Posted July 30, 2011 Share Posted July 30, 2011 My wife and I have seen a property in the Peak Park with a barn that could be converted into a home for my mother. On seeing this son and heir says, "great idea dad, when you and mum are as bad as my nan, me and the wife can move into the cottage, and you and mum can move into the barn". Don't you just love them? :hihi: Ha .ha ..... Nice one ! Link to comment Share on other sites More sharing options...
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