In a weekly column, solicitor Juliet Phillips-James casts

Her expert eye over a range of legal matters and urges anyone with any questions or problems to come forward for help.

Q

I want to transfer my property to my children to avoid the risk of care home fees. Is this a good idea?

AThis is fast becoming the most frequently asked question within our probate department and is extremely difficult to advise upon. Such a transaction should not be entered into lightly.

The benefit in transferring your property to your children is more limited than you may realise. Carmarthenshire Council, for example, currently considers transactions made by you up to two years prior to you going into care to see if there is any equity they can recover from the asset transferred.

Most importantly, the security offered by owning your own home would be lost if the property is transferred out of your name. You would encounter difficulties if there was a breakdown of your relationship with your children, or if one of your children were to get into financial difficulty. You could be left at the mercy of your children’s financial and personal circumstances. Nobody would expect, if you transfer your property to your children, that you would be susceptible to being evicted from your property, but it is a possibility.

Once the property is transferred, you could lose the last say as to what happens to it. If you want to have the property transferred back into your name, that will be up to the children who would own it. If they do not want to transfer it back, then it would be extremely difficult to force them.

You must also consider what could happen if one of your children was to pass away before you. If your property was in their name, your children could leave the equity they hold in your property, in their will, in whatever way they please. That could run counter to your wishes. Your control over such matters is limited. There are certain legal tools open to limit the risk to you of transferring your property into your children’s name. There are also alternative provisions which can be made to protect your home for your children’s inheritance. To discuss your options, make an appointment with a member of our probate team on 01554 755101.