Making the right decision at the right time can significantly increase the likelihood of you being able to retain your property, leave an inheritance and keep some disposable income behind for whatever you wish. This is especially the case if you are looking to leave your family home to your children. However, you should note that if you do enter care within 6 months of gifting your assets and property, the council can still send the bill for the care costs to the person that the gift was gifted too. You can find details of which benefits you may be entitled to on the gov.uk website or through booking an appointment at your local Citizens Advice Bureau, Personal preferences: If you are very specific about the type of care home you’d like to live in (perhaps you already have one in mind) – it’s important to know the cost of this and ensure you can meet that cost indefinitely, Local authority provision: Some local authority care homes are very good. All Rights Reserved. Therefore, if you are on the wrong side of the fallout, it is possible that you could also lose your property. There are many different types of Trusts that you can use. Whilst this approach may seem the perfect way to use a trust to avoid care costs, the reality is that it is far more complex. How to avoid selling your house to pay for care. In these types of cases, they may well challenge the reason behind using a trust. Careful planning can ensure you fund your care in the most efficient way possible and avoid paying any unnecessary costs. Whether you owned it jointly or not, the value of your property would not be included in the means test if then moving into a care home you had a partner and the property was their home as well as yours. In the meantime, watch this video on how equity release works. Whether or not your family member’s entire long-term care costs may be … If your home is included in the means test, you may be able to delay selling it to pay care fees by entering into a ‘deferred payment agreement’ (DPA) … If they do so, they are able to exclude up to $250,000 for an individual, or $500,00 for a couple, from taxes. Setting up a Trust – see the options you have for this below, Legitimate life expenditure – This could be treating yourself to a holiday, Purchasing an investment bond with life cover – To do this, you will need to, regarding avoiding or mitigating your future care fees, how you can safely, and legally,  pass your wealth and assets to your family. They are also known as ‘Property Trust wills’. If you do this, your property may still be assessed when your assets are calculated, There are legitimate reasons as to why you can gift your assets without them potentially being used as part of the calculation to see if you have to pay for your care fees. For a FREE consultation about your options you can call us on. An advisor can help you look at your options as well as ensure you claim all of the benefits you are entitled to. The above saving thresholds include any savings and income, such as a pension. This allows you to take money out of your house and use that to fund your care. Even so, the value of your beneficial interest could exceed the £23,250 limit so owning your home jointly with your son still wouldn’t help. You can also see this video on avoiding care home fees on youtube. There are typically 6 ways to pay for your care costs. Can we sell our £240,000 property to our children for a knockdown price to raise cash and avoid care home fees? The difficulty with gifting assets is that there is no legal time limit in which the local authority can assume that you have ownership of the asset even if you have given it away. You can find details of who to contact below. However, it will only be available if you intend to receive care at home. However, if care is required in the very near future the sooner you take steps to protect your property, the better. You want to ensure that whatever decision you make is right for you – which is why information and professional advice is key. Avoiding and mitigating care home fees is possible in certain circumstances. Contact us and the Will Power team can give you all the advice you need, answer your questions, and make the process easier for you to understand. If you still retained the property in your sole name on death, a grant of probate would be required to deal with it. – Gifting someone your money, both in and outside your family, – Transferring the ownership of your home to someone else in your family, so they aren’t included in the financial assessment for care fees, – Demonstrating unusual spending patterns and spending large sums on things you may not normally do so, – Buying things, such as jewellery or a car, which might otherwise not be included when you are doing a financial assessment. The good news for individuals requiring care and their families is that there are plenty of funding options on the table – provided the financial aspect of care is considered early enough. It is possible to put your house into a Trust and assign your property to someone else, such as your children. Grandpa died in 2000 when the house was worth $200,000. If the person you gifted the property to has financial problems or becomes bankrupt, it is possible that the property would be taken to who the debt is owed, Divorce – If the person who received the gift gets divorced, then your home will make up the value of the estate that needs to be divided on divorce, Death – If the person who was gifted the property was to die, then the property will be passed on along the wishes set out in their Will. The value of a person’s ‘notional capital’ will be included in their overall asset value when they have their financial assessment. You can read more here about how equity release works. This is essential if you have complex affairs. A If it turns out that you do need to go into long-term care and you ask your local authority to arrange it for you, you will have to hope that they don’t trace the question you have emailed me. The key to avoiding paying for care home fees and home care fees is to get financial advice as early as possible. Benefits and pensions: Are you claiming everything you’re entitled to? claim all of the benefits you are entitled to. It will have its own bank account and assets. Leave your details below and we will contact you. Your local authority or council will make an assessment on whether they think you have deliberately given away your assets. Three examples are: – Life Interest Trusts – Allows you to allocate a beneficiary (usually yourself and/or a spouse /partner or  family members) who then has the legal right to receive income from or use a property named in the trust. At the very least, protecting your assets from care fees is not possible if you have assets (including any property) worth over £23,250 collectively. Women and men whose spouse or civil partner died before 2005 in the armed services may also be entitled to an additional Widows Pension or War Widowers pension. Your funds and assets: How much money do you have? This means that they are not included, by your local authority, in any calculation to determine the value of your capital when assessing nursing home costs. Plan ahead. However, that said, there may be other very real reasons as to why you have to put your property into a trust. You and/or any qualifying dependants who live in your home have the right to stay there indefinitely, and can’t be forced to sell up to pay for your care. HOWEVER, there are some circumstances where it may be possible to give away your assets. We work with with Quadrant Estate Planning for them to bring you their market leading later life planning support. If the client successfully ends up with the State paying for the care home, beware. Know if you need to sell your property. You can read more about the savings thresholds for England, Scotland, Wales and Northern Ireland below. As this arrangement seemingly works for married people will it work in my circumstances? If they decide that you have done this with the aim of avoiding paying your care costs, they may still calculate your fees on the basis that you still owned them. This means that they will pay your care home fees and claim the money back later, either … Likewise, you may be thinking about inheritance tax planning. You can negiotiate a Deferred Payment Agreement with the local authority, instead of selling your house You can take independent financial advice to protect your assets. How much can you keep before paying for care depends on where you live in the UK. How much you can keep before paying for care, and therefore the savings threshold for care home fees, differs depending on which part of the UK you live: If you have savings and assets above this, then it is likely that you will have to pay for your care. We would be tenants in common but am wondering if he would have to be living in the property for it to be excluded from means-testing, Last modified on Thu 19 May 2016 02.03 EDT. Another option you may consider when you need to sell parents house to pay for care is how to sell a house by owner. Please read below. Likewise, if you set up a trust, the local authority can still approach the Trustees of the trust, irrespective of the time it was set up. The act of giving away your money and assets is in itself, not the only thing that can be assessed. So, in the right circumstances, it is possible to avoid meeting care fees without it being seen as a deprivation of assets. £23,250 is the threshold below which local authorities in England will begin to subsidise or fully cover the cost of your care – depending on your circumstances. The simple answer to this is you cannot simply give your money away. If your parents are able, and they own the property, this option might work. If your local authority did find it, they might reach the conclusion that you deliberately deprived yourself of an asset – by making your son joint owner of your property – to avoid having the value of your home included in the financial means test. – Interest in Possession Trusts – It’s a kind of trust fund set up to entitle the beneficiary to any income as soon as it is produced. The first step is to know the amount you can afford to contribute towards the cost of your care home. Effectively this means you avoid paying nursing home costs yourself. Many people are able to cover the entire cost or a substantial portion of the cost of long-term care by selling their homes. A reader wants to ensure her son can live in their jointly owned property if she goes into care. Again, this is just another type of deprivation of your assets. By This Is Money Reporter. putting a house in trust to avoid care home fees. Have a free consultation to discuss your circumstances and see what options you have: If you would like some help, please leave your details below and someone will be in touch. On the flip side, if you keep your house its maximum assessed value is $162,087 and it is exempt from your pension assets for two years." The extent of the power your Local Authority has can often be challenged as there is at times some subjectivity involved. One thing you may hear some recommend is what is formally known as ‘disposal of assets’. As long as all the actions you take are legal, a consequence may be that you are able to avoid care fees. She has been in a nursing home for 6 years. There is a risk that this could be seen as a deprivation of assets. Although you may find it unfair to single people, the disregard is intended to ensure that a home jointly resided in does not have to be sold if one of the residents has to go into care. This is why sound, professional advice is so important. 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