My father is in receipt of non contributory pension since 2004. He lives in a house on a largish site maybe 1.5 acres. When applying for pension all savings and account details were given. The site was always just seen as part of the garden even though it had been bought 2 years after the house.
4 years ago the site was transferred equally to his 4 children. The site was valued at the time at approx 20,000. What tax if any should have been paid and by whom? I did not declare it on tax returns - I just thought I had no liability as it was under the allowance from parent to child.
Moving along we are now looking for a nursing home with the fair deal scheme. On the form I need to declare assets transferred in the last five years. The current value is 10,000. I have no problem declaring this and paying the 7.5% liability. My concern is that could my father now be seen to have not declared the site as a separate asset at the time of his pension application?
We could delay applying for the the fair deal nursing home scheme until over the 5 year threshold for transfer of assets would this get us out of the bind I think we might be in? or is it going to show up at probate anyway?
Solicitors did site transfer but did not advise us on the tax implications.
4 years ago the site was transferred equally to his 4 children. The site was valued at the time at approx 20,000. What tax if any should have been paid and by whom? I did not declare it on tax returns - I just thought I had no liability as it was under the allowance from parent to child.
Moving along we are now looking for a nursing home with the fair deal scheme. On the form I need to declare assets transferred in the last five years. The current value is 10,000. I have no problem declaring this and paying the 7.5% liability. My concern is that could my father now be seen to have not declared the site as a separate asset at the time of his pension application?
We could delay applying for the the fair deal nursing home scheme until over the 5 year threshold for transfer of assets would this get us out of the bind I think we might be in? or is it going to show up at probate anyway?
Solicitors did site transfer but did not advise us on the tax implications.