Mother died any grants to help with funeral costs etc.

Your mother owned the house, but the council have a claim on it for that part of the mortgage that has not been repaid.

When she died, there seem to have been significant debts and costs: the unpaid portion of the mortgage; the nursing home costs; and the funeral expenses.

The assets available to meet those costs seem to be a relatively small amount of savings, and the house.

Things need to be tidied up:
1. Money has to be found to pay the nursing home bill, and I don't think there is any scheme under which a claim can be made: the Fair Deal scheme is the government support, and repayment is part of the deal.
2. You can not simply allow your uncle occupy the house and pay the mortgage. Things have to be regularised. If she did not make a will, the house is in effect the property of all her children, and that has to be sorted out. Do the family wish to hand their interest over to your uncle? That involves legal work, and it's not a DIY job. Then the question arises: if he gets the house, do the family want him to accept responsibility for the debts? That looks to me like the agenda for a family conference. The council might agree to the mortgage being transferred to him, but somebody needs to make contact with them to discuss things.
 
Hi, I rang the Fair Deal Scheme and got my answer.

Threadser is correct in his understanding of the scheme:
"The maximum you would have had to pay under the scheme would have been 80% of her income (if this was the state pension then approx. 180 a week plus the 5% of the value of the house spread out over 52 weeks. If your house was worth say €150,000 then this would work out at about 130 a week." One note on this is that there is an amount of €32K, or so, which is deducted from the house price before the % is worked out. This is because a person is exempt from being taxed on the first €32K of their savings. So based on house being valued €150K the amount that the 5% is applied to is €113K approx.

My mother was paying the 80% a week of her Pension but the amount owed based on the value of her home had been deferred until after she died as we could not afford it at the time. This is the amount owed and to the Tax man. The Fair Deal scheme have/will pay the remainder to the nursing home.

My sister was correct to cancel the Fair Deal scheme, after my mother died, as this is correct procedure.

So it works out that we owe the Tax man approx. €1400. So that is a relief for us.


The second point is that my mother didn't have mortgage protection so she still owes €8K on her home. We are happy for my brother to inherit the houses. We just need to sort out now with the council if it can be transferred to him along with outstanding mortgage.

Thank you all so much for your help. It helped me see light at the end of the tunnel.
 
question1 said:
We just need to sort out now with the council if it can be transferred to him along with outstanding mortgage.
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If she bought the house, then the council have no role or interest in what happens to the house. It is now part of her estate. Her mortgage will need to be settled out of her estate.

For just 8k, it is not worth transferring the mortgage. You'll pay more on legal fees than it is worth. Can you or he borrow 8k from anywhere else?
 


when someone buys a council house there is a specific contract stating that the council must be notified when it is being sold and they can block the sale, ive seen it happen 3 times in my estate and to my uncle also

eg. if i buy a council house and fully own it and decide to sell it it must be sold to someone who will live in the house, it cant be sold to someone who already owns a house and plans to rent it out unless i have owned the house for over 25 years. i dont know what part of the country your in but thats the rule for mayo

i know that isnt the situation your in but im just trying to explain that the council has a big say over the house, your brother really needs to ring them and find out what can be done in his case but i know that if the council was renting the house to your mother and they knew her son lived there then he could take over the lease but i dont know if the situation is different since its a council morgage

good luck with it all
 
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