Sell home before or after death?

[IsleOfMan]

From reading a few posts it appears that when a person dies and their assets go to probate and a solicitor is involved that a fee is charged by the solicitor based on the total cost of the estate. 1% or 2%.
If an elderly person is in a nursing home and their home is unoccupied and never likely to be occupied again, is it better cost wise to sell the home before death or wait until the person dies?

 

[huskerdu]

Some solicitors charge a percentage, some structure fees differently. It is worth getting a number of quotes to ensure value for money, once you remember that value for money means getting a competent job done for a fair fee, and not just getting the cheapest fee.

However, your logic is flawed. If you sell your house, the value of your assets has not changed, it is now in cash, not property, so if you die, the value of the estate is the same.

Financial planning for what to do with your assets when you die is a good idea, but basing it solely on getting a cheaper solicitor fee seems like a false economy

 

[twofor1]

If an elderly person is in a nursing home and their home is unoccupied and never likely to be occupied again, is it better cost wise to sell the home before death or wait until the person dies?

If this person is in a nursing home under Fair Deal and didn’t opt for life loan, their contribution to their care will be based on 80% of their income and 5% (7.5% for new applicants) of their assets, with the value of the family home being disregarded after three years.

If the family home is sold, all cash will be assessable for the duration of their stay under Fair Deal.

Selling the house would mean this persons contribution would not reduce by as much, after three years.

If they opted for the life loan this would have to be repaid when the house is sold, the remaining cash would be assessable for the duration of their stay.

Crunch the numbers, but it’s hard to see any case where selling now would be a good idea financially assuming they are in under Fair Deal.

 

[IsleOfMan]

However, your logic is flawed. If you sell your house, the value of your assets has not changed, it is now in cash, not property, so if you die, the value of the estate is the same.

Good point. I think the proceeds from the sale of the house will have to be distributed as soon as sale is concluded.

Fair Deal scheme not being used.