equity release. question (1 Viewer)

[kalamitty]

right its a nice thought getting a chunk of money, from the value of your house and spending it on a new motorhome etc. and its paid back when both have died, with the company taking their chunk, and then surviving kids get the rest. but do you do this or wait till your are put into a home and the council/social put a charge against the property so gradually it dwindles away till nothing left, what would you do? i sold my motorhome using the money to help me move into rural wales, after taking early retirement, i am now living the dream of a peaceful life, doing gardening helping locals on school run, and if nice walks on barmouth beach.

 

[vwalan]

if you have medical needs or a mental problem ,like dementia they cant make you pay.
plus you can transfer the property to the kids etc before you go in a home .
use the rules to suit you not them .

 

[Kool Kroozer]

Sounds like you already have a good lifestyle.. But know what you mean about the equity its something i often think about myself but apparently you need to be 55 or over

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[Coastal Cruiser.]

if you have medical needs or a mental problem ,like dementia they cant make you pay.
plus you can transfer the property to the kids etc before you go in a home .
use the rules to suit you not them .

I could be wrong but I think they can still make you sell if you have dementia as they make a next of kin the power of attorney, mum and dad have just bought a bungalow from someone who went in a home with it and the daughter had to sort it out.

Transferring the property over has to be done 7 years before I think otherwise there are tax implications.

 

[vwalan]

no. they cant make you .
its a hard fight sometimes the authorities dont want to accept the rules . took my brother and i two years arguing with our local shambles but we won .
many think transfer of the house goes back 7 years as well . but that is only for inheritance tax .
if you do it a few weeks before then it isnt allowed but a year 18months its ok.
many dont fight for it so lose out .
i know lots round here that wont stand up for their rights .
the nursing and care folk lie through their teeth . its really incredible just how bad the system is .
all i can say is google is your friend .
there are solicitors set up to help.
but dont give in . the rules work for us as well as authority.

 

[Griffs]

if you have medical needs or a mental problem ,like dementia they cant make you pay.
plus you can transfer the property to the kids etc before you go in a home .
use the rules to suit you not them .

Oh yes, they can make you pay, also handing over to your children is not so easy there are time limits , also your children could get divorced if they were married ,bang goes a chunk of the pot.

It is no easy way to these situations.

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[vwalan]

not if you have mental or medical problems . the reason for going into care .
there really arent anytime limmits on care and transfer but if its a year or 18 months you win .
unfortunately many just dont fight . thety give in and dont check out the rules .

 

[tofo]

Don't get me wrong
Money is LOANED WITH INTEREST

You are losing from the minute you sign

To move to a smaller prem later
You will have to pay that debt plus whatever costs prevail

You need to be desperate I'm thinking

 

[klaatu]

Equity release is very tempting, and we've considered it, but be very careful and take independent advice before doing it.

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[Larrynwin]

Best way in my opinion is to take it as a Lifetime Mortgage with the option to pay off some interest if and when you can afford it, that way you get some capital and also reduce the interest accruing too much.

 

[MC 55 FUN]

Equity release is a desperate measure i.m.o. - interest rates are around 5%+ & the interest is compounded yearly - a £50k release can double all too quickly.

Definitely take professional advice relating to YOUR individual circumstances before proceeding.

 

[vwalan]

far better to down size to a cheaper area . specially one that is in a cheap car insurance area etc .
its like the mortgage in the first place . paying it off as fast as you could was the way. then the mortgage companies put clauses in to stop you . carefull reading of small print is the key.

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[Minxy]

not if you have mental or medical problems . the reason for going into care .
there really arent anytime limmits on care and transfer but if its a year or 18 months you win .
unfortunately many just dont fight . thety give in and dont check out the rules .

You could fall foul of the 'deprivation of assets' rules though if you give your property to your kids, even after 18 months or so, as there's no time limit on that.

 

[Larrynwin]

Equity release is a desperate measure i.m.o. - interest rates are around 5%+ & the interest is compounded yearly - a £50k release can double all too quickly.

Definitely take professional advice relating to YOUR individual circumstances before proceeding.

There are circumstances where it could be sensible .
A 70 ish year old childless couple who are property/asset rich but wish to enjoy their remaining years could well benefit rather than leaving the value of their property to the state.
Or indeed where a couples children are financially sound and are happy for the old ones to take advantage of what they have accrued over a lifetime.

 

[vwalan]

but as many have done before it can work. . do you know if they have gone back further than six months as i dont know of any .
thats for minxy.

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[Larrynwin]

A friend of mine , following the death of his wife talked to his children about equity release and they encouraged him as they were ok.
As a result he travelled extensively with a new partner and finally passed on a couple of years back.

 

[Minxy]

but as many have done before it can work. . do you know if they have gone back further than six months as i dont know of any .
thats for minxy.

No knowledge of anyone personally who's had this but when my Mum inherited some money a few years ago (totally out of the blue) it was something which I looked into in great detail and it appears if they wish to the authorities CAN go back as far as they want ... if they can show it was 'given away' with the intention of preventing it being used for the care of the giver (eg they already had a health condition that meant they'd most likely need care in the future) they can claim it back from those who've received it!

 

[vwalan]

No knowledge of anyone personally who's had this but when my Mum inherited some money a few years ago (totally out of the blue) it was something which I looked into in great detail and it appears if they wish to the authorities CAN go back as far as they want ... if they can show it was 'given away' with the intention of preventing it being used for the care of the giver (eg they already had a health condition that meant they'd most likely need care in the future) they can claim it back from those who've received it!

yes i already said inheritance is seven years .
but thats not what we are on here .
i,m lucky perhaps i play apart of a watch authority group. we monitor what authority is doing . on transport . health . etc . as i have also said you do have to protect your parents property . i had a dad with dementia and a mum with medical needs . we won .
yes their pension is took off them and pocket money given . but thats ok .
also there are cash or money in bank etc limits , sort it . do it now .
there are rules let the rules work for you not against you .

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[Larrynwin]

No knowledge of anyone personally who's had this but when my Mum inherited some money a few years ago (totally out of the blue) it was something which I looked into in great detail and it appears if they wish to the authorities CAN go back as far as they want ... if they can show it was 'given away' with the intention of preventing it being used for the care of the giver (eg they already had a health condition that meant they'd most likely need care in the future) they can claim it back from those who've received it!

Not that straight forward. Taking out equity release gives a first charge on the property to the mortgager , also it's likely that any proceeds could well have been spent by the time care is required.

 

[SuperMike]

What Minxy Girl says. Be very careful. When we signed over stuff to me, at the time our solicitor warned that if they get a stiff of anything that they consider deliberate evasion then they can have it all called back.

 

[Larrynwin]

What Minxy Girl says. Be very careful. When we signed over stuff to me, at the time our solicitor warned that if they get a stiff of anything that they consider deliberate evasion then they can have it all called back.

I doubt that Mike if the lender has a first legal charge on a property and the house owner has spent the proceeds where would any council get the money from.

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[Minxy]

I think we're talking at cross purposes, I was responding in relation to the giving of property/money away ... ie deprivation of assets, not inheritance tax or equity release.

As I mentioned, my Mum inherited some money but her total 'value' is no where near the 'inheritance tax' threashold so that's not an issue for her - it's the 'deprivation of assets' that she have to be careful of (she's now 91!) ... if she could have her way she'd give it all away as she never wanted it, but she can't especially if she's likely to need care in the future (not that we'd ever be able to get her out of her little flat!). She's allowed under the rules to give away assets (eg buy gifts, give money/property) to the value of £3,000 a year maximum in order not to fall foul of the 'deprivation' rules.

Unfortunately once you get older and/or have health issues giving away money as you wish isn't always 'allowed'!

 

[Larrynwin]

I am not talking inheritance tax but specifically equity release. If equity release is taken before the need for care the lender would have first legal charge on the property involved .

 

[MC 55 FUN]

Let's not forget, if someone deliberately hides assets in an attempt to avoid care fees, they are breaking the law & also expecting other local council taxpayers to pick up the bill . .

SWMBO is a registered car home manager here in Wales & sees this type of attempted fraud all too frequently.

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[SuperMike]

Sorry Larry I have confused you. I was not talking about equity release or mortgages or even spending anything, just changing who has it, in an effort to not pay care fees. I'll shut up.

 

[Larrynwin]

Sorry Larry I have confused you. I was not talking about equity release or mortgages or even spending anything, just changing who has it, in an effort to not pay care fees. I'll shut up.

Ta Mike, hope all well at your end and your old Chevy is still purring

 

[buttons]

if you have medical needs or a mental problem ,like dementia they cant make you pay.
plus you can transfer the property to the kids etc before you go in a home .
use the rules to suit you not them .

Where did you find this information vwalan, as far as I am aware then either the 7 year rule applies or assets disposed of or gifted can still be claimed for social care.

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[vwalan]

i found it out about 15 years ago . both my parents were in old folks homes . my dad had mental problems . very bad dementia ,and my mum couldnt walk due to her hips breaking down . . it took alot of reading and talking to social services and various charities etc , authority tried to put a charge on my parents house but my brother and i challenged it in court and authority failed . they kept on trying all sorts of ways but we didnt give in . at the time it was 800 quid a week for my dad and 600quid a week for my mum . so their house would soon of disappeared . we did organize independent medicals for both parents and managed to get lots of records from the primary care trust. at one time i taped a discussion with the primary care trust as they wanted my dad to go into a special care unit . but kept saying there was nothing wrong with him . but wouldnt let him come home as he might be a danger to himself or others .
it took us about 2 years and it was stressfull and time consuming . but was worth it .
remember its only for mental or medical care . they can be charged for food etc .
as said the care trust keeps the pensions but give the residents pocket money. thats fair i believe .
speak to your local citz advice crowd . its been going on for years , i just happened to know about a mates mum that went through it a few years before when my mates gran was taken ill and went into a home .
some solicitors dont seem to know the rules on it and very often specialist ones are required .

 

[buttons]

i found it out about 15 years ago . both my parents were in old folks homes . my dad had mental problems . very bad dementia ,and my mum couldnt walk due to her hips breaking down . . it took alot of reading and talking to social services and various charities etc , authority tried to put a charge on my parents house but my brother and i challenged it in court and authority failed . they kept on trying all sorts of ways but we didnt give in . at the time it was 800 quid a week for my dad and 600quid a week for my mum . so their house would soon of disappeared . we did organize independent medicals for both parents and managed to get lots of records from the primary care trust. at one time i taped a discussion with the primary care trust as they wanted my dad to go into a special care unit . but kept saying there was nothing wrong with him . but wouldnt let him come home as he might be a danger to himself or others .
it took us about 2 years and it was stressfull and time consuming . but was worth it .
remember its only for mental or medical care . they can be charged for food etc .
as said the care trust keeps the pensions but give the residents pocket money. thats fair i believe .
speak to your local citz advice crowd . its been going on for years , i just happened to know about a mates mum that went through it a few years before when my mates gran was taken ill and went into a home .
some solicitors dont seem to know the rules on it and very often specialist ones are required .

Out of interest who paid the court cost alan?

 

[vwalan]

we had none , we didnt require solicitors etc so they or who ever paid .
it has to go to court to have the charge on the house. to respond doesnt cost if you do it yourself.
you may lose but ,i knew we would win .
you dont need a solicitor in a court unless it ends up in crown court then you need a solicitor to instruct a barrister to speak for you .
but what we are on isnt criminal court just county court . you can do it yourself .

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