A person living with dementia may decide, for example, to remove to another property. This may be a) a smaller property near a family member, b) a larger property with a members of his or her family, or c) a care home. [Sometimes the decision may need to be taken by a relative or carer who has enduring power of attorney, ie on behalf of the person with dementia who is no longer able to take such decisions as may be necessary.]
A need will be for funds to enable the move to be made. A list of some possible sources is given in Post 8B. If the person with dementia has sufficient investments, the disposal of these, subject to any capital gains or other taxes may provide sufficent funds.
Sale of Home
The sale of the individual's home may need to be carried out. If it is his or her sole or main residence that is sold, no capital gains tax should arise.
The amount available for the later move will be: the gross price agreed less a) estate agent's costs and fees, b) solicitor's costs and fees, and c) removal costs.
Letting of Home
If the person with dementia is moving to a care home, an alternative to a sale might be letting the home for a regular rent to meet or partly meet the care home fees.
Again taxation needs to be considered - since only the net income from the let property will be available. Once let, the net income less annual costs will be subject to income tax. For tax purposes the annual costs allowed against annual gross rents include property insurance, maintenance, repairs, management fees, and other allowable costs. Before letting it amy be appropriate to repair and improve the property so that it can be let. Also, the letting agent's costs and fees need to be considered.
Thus, the net of tax income will be available to help pay for care home costs, etc.
