I have a Fair Deal problem. My sister entered the scheme on my father's behalf, 3 years ago. My father was competent at the time and had signed an EPA. Since then the EPA was activated. He was able to pay for the first two years from savings. Unfortunately, when the scheme was entered into, my father had another property so that asset was assessed.
There are now two problems. The first is that this asset is now valued at less than half what it was 3 years ago. It makes sense to sell it now and pay off the Fair Deal.
However, i the property is sold now to release my father from the Fair Deal scheme, when he dies he will unintentionally disinherit his youngest and most vulnerable son. The property that my father handed over to the Fair Deal he owns only because he bought it in "trust" for my brother, who is handicapped. Although significantly disabled, my brother is competent in handling his own affairs, but my father considered him open to being exploited. I am clear that the property rightfully belongs to my brother, as this was a result of compensation for a head injury when he was a child. However, my father made many poor decisions and as a result my disabled brother will be disinherited as well. In his will my father left this property to my disabled brother (understanding that it was the bulk of the estate). The family home and residuals is left to my sister and I.
If I sell that asset now, my father gets the rest of his care for free. My brother gets nothing.
If I don't sell it and wait for my father to die... he is 78 and in reasonably good health despite mental frailty .... then there is a strong possibility that the sale of the asset will not reach even 50% of the estimated value of the charge. I believe the family home will need to be sold to pay the balance. Am I correct? Is there any decent way out of this bind?
As my father's attorney, I know he would be appalled by this scenario and that he never envisaged that his desire to shield my brother through over protectiveness would lead to this significant loss.
All advice gratefully received.
There are now two problems. The first is that this asset is now valued at less than half what it was 3 years ago. It makes sense to sell it now and pay off the Fair Deal.
However, i the property is sold now to release my father from the Fair Deal scheme, when he dies he will unintentionally disinherit his youngest and most vulnerable son. The property that my father handed over to the Fair Deal he owns only because he bought it in "trust" for my brother, who is handicapped. Although significantly disabled, my brother is competent in handling his own affairs, but my father considered him open to being exploited. I am clear that the property rightfully belongs to my brother, as this was a result of compensation for a head injury when he was a child. However, my father made many poor decisions and as a result my disabled brother will be disinherited as well. In his will my father left this property to my disabled brother (understanding that it was the bulk of the estate). The family home and residuals is left to my sister and I.
If I sell that asset now, my father gets the rest of his care for free. My brother gets nothing.
If I don't sell it and wait for my father to die... he is 78 and in reasonably good health despite mental frailty .... then there is a strong possibility that the sale of the asset will not reach even 50% of the estimated value of the charge. I believe the family home will need to be sold to pay the balance. Am I correct? Is there any decent way out of this bind?
As my father's attorney, I know he would be appalled by this scenario and that he never envisaged that his desire to shield my brother through over protectiveness would lead to this significant loss.
All advice gratefully received.