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Mother in retirement accomodation in Sweden

Should we sell mother's flat to save money?

PhilipB
post 26.Aug.2018, 05:15 PM
Post #1
Joined: 26.Aug.2018

Hi everybody,

I have a question about how the Swedish government calculates how much somebody should pay towards the cost of their stay in retirement accomodation.

My mother has some savings and owns a flat. She now rents a room in retirement accommodation - what the English would call an "old peoples' home". She is wondering if she should sell the flat to reduce costs.

My concern is that in some countries the government only looks at the value of your savings when they calculate how much money you should pay for your accommodation. They don't include the value of your property. So if you increase your savings by selling your flat you only end up paying more in rent because you have more savings! All the money from your property sale is just wasted.

What is the system in Sweden? If she sold her flat and boosted her savings would the government ask for more money to cover the cost of her retirement accommodation?

Philip
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intrepidfox
post 26.Aug.2018, 07:49 PM
Post #2
Location: Gothenburg
Joined: 18.Jul.2012

http://seniorval.se/bra-att-veta/vad-kostar-aldreboende
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Bsmith
post 27.Aug.2018, 12:16 PM
Post #3
Joined: 25.Jun.2009

Have her sell it to you for one crown then you can sell it on your own and put the money in account in your name (even thought it would be her money).
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skogsbo
post 27.Aug.2018, 01:56 PM
Post #4
Joined: 20.Sep.2011

QUOTE (Bsmith @ 27.Aug.2018, 11:16 AM) *
Have her sell it to you for one crown then you can sell it on your own and put the money in account in your name (even thought it would be her money).

SV are fully up to speed with that plan. If you only pay 1kr then when you sell you will pay tax on the whole value of the property, as you haven't lived in it and haven't bought another property with the funds etc..
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Bsmith
post 27.Aug.2018, 03:28 PM
Post #5
Joined: 25.Jun.2009

Thanks for the correction.
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john.boy
post 27.Aug.2018, 06:00 PM
Post #6
Location: Stockholm county
Joined: 27.Sep.2017

If you intend to keep it for a while and it is a bostadsrätt, then have her gift it to you.
Whenever in the future, not too soon as it will then not be considered a gift. And it cannot be a gift including transfer of any mortgage, as that would be considered a type of sale.

There isn't any worry though with regards having to do this just because of elderly care, that has a maximum charge that is based upon income, not asset values.
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yet another brit
post 28.Aug.2018, 08:08 PM
Post #7
Joined: 5.Jan.2013

QUOTE (john.boy @ 27.Aug.2018, 06:00 PM) *
If you intend to keep it for a while and it is a bostadsrätt, then have her gift it to you.Whenever in the future, not too soon as it will then not be considered a gift. And ... (show full quote)



More strictly, the assessment is on ordinary income and capital income. The forms don't ask the person to declare their assets. And as far as I know, you aren't required to sell assets either. And in any case, the max cost is legally limited to about 2000 a month for the care fee (and about the same for food); and the rest of any cost is rent. Basically, an old person is treated the same as anyone else.
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