Fair Deal/Nursing Homes can siblings claim tax relief on asset sale to fund care

[herewego]

Hi,

our dad died before fair deal was implemented and left my mum a 'Life interest in the Home and Farm and thereafter to his 5 children in equal shares'. My mum is 91 and none of us are farming as it has been leased. Per fair deal assessment she will have to pay the full nursing home fee.

If we (mum and children) decided to sell some of the land to fund my mum's care can we the children claim the tax relief if we pay the nursing home costs on her behalf or would this be seen as tax avoidance.
What if she gifts us the land now and we sell to fund her care to claim relief ?

Other option is to get the fair deal loan, or would it be better for my mum to fund herself with land sale ? what are the advantages if any ?
any advice very welcome

 

[Clamball]

IANAL but I don’t think your Mother owns the land, the siblings do. But a solicitor should be able to explain that to your mother as she really should take independent legal advice. So if she applies for the fair deal her assets are her rental income and the value of her lifetime interest.

 

[herewego]

she was already assessed and deemed the asset owner for fair deal unless we can argue otherwise.
Since its a life interest and not a right of residence the assets would appear to be under her name.
Will need to seek some professional advice

 

[Clamball]

This blog post may be relevant. You could possibly argue that fair deal should only consider 50% of the asset. The post says it is not a loop hole and clearly your Dad was not using it as a loop hole to evade nursing home fees.

 

[herewego]

This blog post may be relevant. You could possibly argue that fair deal should only consider 50% of the asset. The post says it is not a loop hole and clearly your Dad was not using it as a loop hole to evade nursing home fees.

Thanks for the link. Would have been great if this had been in place originally and would have made a lot of sense.