inheritance of house

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Stephend0890
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by Stephend0890 » Sun Sep 17, 2017 12:28 pm
12 months into my iva, i rent with my partner, my parents are talking about signing over there house to me, im worried how will this affect my iva, my parents dont know im in a iva and fear what happens?
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Foggy
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by Foggy » Sun Sep 17, 2017 1:20 pm
It would not be advisable for them to sign the house over to you whilst you are in an IVA --- at best you will have to release equity at worst you might have to sell it to pay into your IVA.

Might I ask why they are considering this move and could it be put on hold for a while ?
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Stephend0890
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by Stephend0890 » Sun Sep 17, 2017 4:30 pm
old age and with caring requirements a possibility there looking into ways of protecting the house should they need to go into a home and with the costs don't want or have to sell the house, i believe a lot of people do this? after all i will have to tell them not to do it as i would then have to declare it to my iva and face losing it...
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Foggy
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by Foggy » Sun Sep 17, 2017 4:37 pm
Stephend0890 wrote:
old age and with caring requirements a possibility there looking into ways of protecting the house should they need to go into a home and with the costs don't want or have to sell the house, i believe a lot of people do this? after all i will have to tell them not to do it as i would then have to declare it to my iva and face losing it...



A lot of people try this -- but it doesn't always work as intended as these transactions can be set aside if the local authority feel it was to avoid care fees. I would suggest that they take legal advice before doing anything (regardless of the IVA position). Maybe Age Concern or CAB can advise.
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kallis3
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by kallis3 » Sun Sep 17, 2017 6:40 pm
If you are talking about equity release - I have done it and also made a will leaving the remainder in trust for our kids. It is worth thinking about but do speak to a few firms before making a decision.
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Foggy
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by Foggy » Sun Sep 17, 2017 7:57 pm
The key is often time -- the longer between the transaction and passing, the less likely anything can be set aside. Putting the house in trust would be a better solution to avoid the IVA complications. Again this could fall foul on the care avoidance side if anything untoward were to happen in the next few years, but it would be kept clear of the IVA. But do get legal advice, as this is a minefield.
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