Q. I am an 85-year-old man living in rural Limerick. My daughter said she would like to build an extension to my house so, when the time comes, she will be in a position to take care of me. I have always stated that I don’t want to go to a nursing home. She approached the bank, who told her that to get a mortgage to build the extension, the home will need to be transferred into her sole name. While I trust my daughter, I’m not too keen on her boyfriend, who appears to be quite controlling. I fear if I do transfer into her sole name, I may end up without a house for myself. Can you offer advice?
Dear Reader,
This is a difficult situation. Clearly you want to provide for your daughter and allow her to care for you as you age. However, transferring your property is a serious step. The property would no longer be yours, you could not sell to downsize, or leave it in your will, or avail of certain aspects of the Nursing Home Support Scheme.
You could try and mitigate the risks by including robust rights of residence, maintenance, upkeep, and support for you, but ultimately the property would belong to your daughter. She and her boyfriend moving in could mean substantial changes to the property without your consent, including renting rooms to third parties, etc.
If the property belongs to your daughter, and her partner makes contributions towards the mortgage or general household expenses, he could claim a share in the home. Quite apart from that, if she were to fall into arrears on the mortgage, or run up other debts, it is possible the bank or other creditor could look to repossess the home.
You should also consider the potential tax implications of the transfer and the costs associated with same. You should also consider the impact on your wider family, as the property could not be left via your will.
I note you are not only concerned about the transfer of the property itself, but I get the feeling that you also feel a bit pressurised by the whole transaction. That on its own is reason enough to stop and consider matters.
You should consult with your own solicitor, without any involvement of your daughter or her partner. My view is that generally transferring property from parent to child is not advised unless there is a substantial and serious reason to do so. It is imperative that you contact your own solicitor as soon as possible.