Paying for Residential Care

[Pennie]

Interesting editorial in this morning's Sunday Telegraph:

http://www.telegraph.co.uk/finance/pers ... -care.html

[jenny lucas]

Yes, interesting article.

One thing that remains unclear, however, is just how 'long ago' a parent can have passed assets to their children to avoid inheritance tax (the most usual reason - or, say, to free up capital for their children to put down a house deposit themselves) before it's NOT classed as deliberate deprivation of assets!

This seems to me an essential point to clarify (or have tested in the courts preferably, so as to set a precedent in law). It was said in the recent You and Yours programme on funding care that it used to be that the councils set a retro-limit of seven years, but not it was 'unlimited'. If so, one could see a point where a parent gives a child assets at birth, and the council still homing in on them seventy years later to get them back to pay for care!!!!

Secondly, it also seems essential for married partners NOT to leave each other their assets! Instead, to leave half to the children, and only half to the surviving widow/widower, so that, again, the whole estate can't be filched by the council to pay for the surviving spouse's care.

Whilst I don't see why tax payers should pay for the care of people who want to leave all their assets to their children, I also object to there being no way at all of protecting some of one's estate from the council!

[charles47]

There are ways to limit the damage - as Jenny says - but the difficulty is that it needs to be done with the help of someone with the right legal background so that there are no loopholes for the councils to dive into. That means there's an upfront cost, but overall it's a worthwhile saving if you can manage it.

[jenny lucas]

Yes, definitely need to nail down any damn loopholes. Trouble is, if Councils can 'change the rules' retrospectively.....

[Annie44]

Yes, interesting article.

One thing that remains unclear, however, is just how 'long ago' a parent can have passed assets to their children to avoid inheritance tax (the most usual reason - or, say, to free up capital for their children to put down a house deposit themselves) before it's NOT classed as deliberate deprivation of assets!

This seems to me an essential point to clarify (or have tested in the courts preferably, so as to set a precedent in law). It was said in the recent You and Yours programme on funding care that it used to be that the councils set a retro-limit of seven years, but not it was 'unlimited'. If so, one could see a point where a parent gives a child assets at birth, and the council still homing in on them seventy years later to get them back to pay for care!!!!

Secondly, it also seems essential for married partners NOT to leave each other their assets! Instead, to leave half to the children, and only half to the surviving widow/widower, so that, again, the whole estate can't be filched by the council to pay for the surviving spouse's care.

Whilst I don't see why tax payers should pay for the care of people who want to leave all their assets to their children, I also object to there being no way at all of protecting some of one's estate from the council!

Hello. Jenny , You make some very vaild interesting points. & agree with you

You might or might not be interested in the Fair Care Home Petition that I am supporting (tho please NOTE it is NOT my Petition !). I have posted in the Petition forum , sorry if you have read it all ready
Lots of people have shared it on F Book etc & there has been lots of support for it but it needs a lot more support etc before the Govt takes any notice of it.

Thank you and All the Best too you

Annie 44. X

[bowlingbun]

The time which has to lapse after assets are transferred varies for different rules.
For Inheritance Tax purposes, I understand that the assets have to be transferred 7 years before death to be fully exempt.
On the other hand, I have read that a local authority should discount anything transferred over 6 months previously, especially when the person making the transfer did not know that they were going to need LA services 6 months later.
I'm increasingly worried at the way social workers make authoritative statements which don't have any legal justification whatsoever. It is VITAL to seek advice from a SPECIALIST solicitor and/or the Carers UK helpline.
I've just discovered that our local solicitor didn't draw up things properly to protect my disabled son after I die. Fortunately, I've discovered in time to put things right.

[rosemary]

A few fact sheets that you may find helpful. Remember each case is different though, so you should still seek professional support.

http://www.ageuk.org.uk/Documents/EN-GB ... ?dtrk=true

http://www.ageuk.org.uk/home-and-care/c ... -property/


Menu on left hand side of the page in the link below takes you to further guidance
http://www.ageuk.org.uk/home-and-care/c ... tial-care/

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