Wills: Can you protect assets from local authority?
Discussion
Don't think so in the current regime. Offloading the property can be undone by the local authority if they feel you've done it to avoid paying.
If the property can be rented out to meet the home fees, they will not press for sale, but that's a month by month thing (and personal experience is from a few years back)
If the property can be rented out to meet the home fees, they will not press for sale, but that's a month by month thing (and personal experience is from a few years back)
Can you not gift it to children prior?
I think you have to survive seven years or something like.
I find it disgusting that you work hard, save and finally own your own home which you can pass on to your kids only to have the whole lot taken from you whereas if you contribute not one thing your care is free.
I think you have to survive seven years or something like.
I find it disgusting that you work hard, save and finally own your own home which you can pass on to your kids only to have the whole lot taken from you whereas if you contribute not one thing your care is free.
mcflurry said:
What level of home would you expect for free vs one paid for by kids inheritance?
Exactly the same, and that's the major issue that the changes will resolve. I don't think anyone objects to those who choose to pay privately doing so. It's the clawing back of any and every asset that the recipient of care has, including their home, that leaves a bad taste in the mouth.Yeah mega moral hazard.
Simple fix. Baseline for everyone for care. Pay for anything over and above that you want. No clawbacks etc.
Baseline care is mattress on bed in a shed with some bloke that comes and hoses the inside of the shed out daily and drops off a bowl of gruel.
Assisted suicide machine free for use in the corner.
Hmm, maybe thats a bit too callous
Simple fix. Baseline for everyone for care. Pay for anything over and above that you want. No clawbacks etc.
Baseline care is mattress on bed in a shed with some bloke that comes and hoses the inside of the shed out daily and drops off a bowl of gruel.
Assisted suicide machine free for use in the corner.
Hmm, maybe thats a bit too callous
We have done this . My mum is my brothers carer he has MS we have a trust set up as part of her will, 2 in fact one that enables him to remain in the house as long as he can care for himself which unfortunately probably wouldnt be that long . And then the second to protect his share of the asset upon sale . Its complicated and costly (£550 ) but worth it in the long run its something we will have to face as Mum bless her is 77 and Dad died years ago when I was 9. Brothers will also includes a trust,I would advise a good solicitor as without it setting up properly the full asset value of estate could be at risk and other beneficaries would be excluded .
hope this helps
hope this helps
mad4amanda said:
We have done this . My mum is my brothers carer he has MS we have a trust set up as part of her will, 2 in fact one that enables him to remain in the house as long as he can care for himself which unfortunately probably wouldnt be that long . And then the second to protect his share of the asset upon sale . Its complicated and costly (£550 ) but worth it in the long run its something we will have to face as Mum bless her is 77 and Dad died years ago when I was 9. Brothers will also includes a trust,I would advise a good solicitor as without it setting up properly the full asset value of estate could be at risk and other beneficaries would be excluded .
hope this helps
I think it helps, and yes I will get a good solicitor, but am concerned that when it comes to the crunch the rules may have changed, or the advice was wrong in the first place! hope this helps
A properly constituted property trust set up in the right wat WILL protect the home from being used to defray residential; care costs.
Fact is the majority of taxes are avoidable if you know how. It can be a complex process but this is actually common practice amongst the wealthy. Viz Barclay's paying ONLY £100 odd million tax on £4 Billion profit,
Quite ludicrous but legally correct.
You should consult a local Financial Adviser. Try to find one recommended by other business contacts you may have. THEY MUST be authorised and underwritten by the FSA.
This is common practice in the Financial Services industry.
I speak as a Chartered Accountant.
Protect your parents and inheritance. Get this done. There is no downside unless you are Chancellor.
Fact is the majority of taxes are avoidable if you know how. It can be a complex process but this is actually common practice amongst the wealthy. Viz Barclay's paying ONLY £100 odd million tax on £4 Billion profit,
Quite ludicrous but legally correct.
You should consult a local Financial Adviser. Try to find one recommended by other business contacts you may have. THEY MUST be authorised and underwritten by the FSA.
This is common practice in the Financial Services industry.
I speak as a Chartered Accountant.
Protect your parents and inheritance. Get this done. There is no downside unless you are Chancellor.
A word of warning with regards to safeguarding all of your assets or should i say your parents assets.
The local councils and therefore social services have no money in their social and adult care budgets and I don't see this changing any time soon.
Do yourself a favour and take a Saturday afternoon looking round the care homes that accept residents at Social Services standard rates. You may wish to consider an alternative financial strategy that provides you with some liquid assets to use to top up the shortfall in fees.
Don't get me wrong I think the system is wrong too but I have also seen the homes that the social services place residents in because it saves money. Also word soon filters down when families have been deemed to have purposely reduced or eliminated their ability to fund care and therefore force the hand of the social services.
The local councils and therefore social services have no money in their social and adult care budgets and I don't see this changing any time soon.
Do yourself a favour and take a Saturday afternoon looking round the care homes that accept residents at Social Services standard rates. You may wish to consider an alternative financial strategy that provides you with some liquid assets to use to top up the shortfall in fees.
Don't get me wrong I think the system is wrong too but I have also seen the homes that the social services place residents in because it saves money. Also word soon filters down when families have been deemed to have purposely reduced or eliminated their ability to fund care and therefore force the hand of the social services.
Edited by 2 5HAN on Tuesday 22 February 13:58
Steffan said:
A properly constituted property trust set up in the right wat WILL protect the home from being used to defray residential; care costs.
Fact is the majority of taxes are avoidable if you know how. It can be a complex process but this is actually common practice amongst the wealthy. Viz Barclay's paying ONLY £100 odd million tax on £4 Billion profit,
Quite ludicrous but legally correct.
You should consult a local Financial Adviser. Try to find one recommended by other business contacts you may have. THEY MUST be authorised and underwritten by the FSA.
This is common practice in the Financial Services industry.
I speak as a Chartered Accountant.
Protect your parents and inheritance. Get this done. There is no downside unless you are Chancellor.
I have been trying for years to find a financial tax adviser in the Bristol area, so let me know if you know of one.Fact is the majority of taxes are avoidable if you know how. It can be a complex process but this is actually common practice amongst the wealthy. Viz Barclay's paying ONLY £100 odd million tax on £4 Billion profit,
Quite ludicrous but legally correct.
You should consult a local Financial Adviser. Try to find one recommended by other business contacts you may have. THEY MUST be authorised and underwritten by the FSA.
This is common practice in the Financial Services industry.
I speak as a Chartered Accountant.
Protect your parents and inheritance. Get this done. There is no downside unless you are Chancellor.
You dont meed an IFA. to write a propercty care trust will.Most will just pass them on to the people below for a fee cut.
Just get a society of will writing company to do it,Or from the Institute of will writers.
Secondly re horrendous social care homes what you do is this.Keep some money set by,if you have to go into care get in the best one you can afford for 3 months,then legally the council cant chuck you out.
Just get a society of will writing company to do it,Or from the Institute of will writers.
Secondly re horrendous social care homes what you do is this.Keep some money set by,if you have to go into care get in the best one you can afford for 3 months,then legally the council cant chuck you out.
I'm still rabidly fuming at all the lefty 
s who successfully undermined the Tory proposal that you pay 6000 quid on retirement and all your care needs are then guaranteed to be met as and when you need them.
I think we need to start questioning the way our democracy is currently functioning when, purely for political point scoring, things that we need are denied from us.
And breathe.
s.
s who successfully undermined the Tory proposal that you pay 6000 quid on retirement and all your care needs are then guaranteed to be met as and when you need them.I think we need to start questioning the way our democracy is currently functioning when, purely for political point scoring, things that we need are denied from us.
And breathe.
s.smashy said:
Secondly re horrendous social care homes what you do is this.Keep some money set by,if you have to go into care get in the best one you can afford for 3 months,then legally the council cant chuck you out.
Definately not true!The council will and can definately move you to a cheaper home if they are unable to negotiate the fees.
Whoever told you this does not know what they are talking about.
I was considering my mother’s needs recently since the time she can remain fully independent and caring for herself is coming to a close.
Rather than her residing in a care home, we feel that semi-independent living with family support in a granny annex would be suitable for a period.
I was concerned that if I did this that the council would have some claim upon my property when mum deteriorates beyond our ability to provide care and needs a professional care.
My Solicitor advised me that my mother and I should both sell our properties then jointly purchase a single property using the proceeds of the two sales. It should be either a property with an existing granny annex, or using the funds to construct a granny annex, fully utilising the proceeds of the sale of her house. Additionally using any other funds held by the elderly relative in purchasing the granny annex may be effective.
Effectively you are releasing the equity in your parent’s property whilst they are still alive. If you still have sufficient equity in both properties to purchase the granny annex your existing mortgage can downsized or eliminated. Obviously this saves interest payments and can prove a considerable extra benefit if you still have a long mortgage.
After my mother has resided in the granny annex for six months the council must disregard the value of her investment in the joint property when assessing her finances for care cost contributions. The exception is if the council can prove that you did this with the intention of depriving them of the equity in her property.
Since I genuinely would prefer to keep my mother with the family and out of a care home for as long as possible, this isn’t a problem. Ideally mum is hoping to avoid going into a care home altogether.
Finally, her existing will leaves me everything anyway. When she dies her share of the property therefore reverts to me. I end up owning a more valuable property than I started with. I won’t need the granny annex, so I downsize into a more suitable property and bank the change.
Rather than her residing in a care home, we feel that semi-independent living with family support in a granny annex would be suitable for a period.
I was concerned that if I did this that the council would have some claim upon my property when mum deteriorates beyond our ability to provide care and needs a professional care.
My Solicitor advised me that my mother and I should both sell our properties then jointly purchase a single property using the proceeds of the two sales. It should be either a property with an existing granny annex, or using the funds to construct a granny annex, fully utilising the proceeds of the sale of her house. Additionally using any other funds held by the elderly relative in purchasing the granny annex may be effective.
Effectively you are releasing the equity in your parent’s property whilst they are still alive. If you still have sufficient equity in both properties to purchase the granny annex your existing mortgage can downsized or eliminated. Obviously this saves interest payments and can prove a considerable extra benefit if you still have a long mortgage.
After my mother has resided in the granny annex for six months the council must disregard the value of her investment in the joint property when assessing her finances for care cost contributions. The exception is if the council can prove that you did this with the intention of depriving them of the equity in her property.
Since I genuinely would prefer to keep my mother with the family and out of a care home for as long as possible, this isn’t a problem. Ideally mum is hoping to avoid going into a care home altogether.
Finally, her existing will leaves me everything anyway. When she dies her share of the property therefore reverts to me. I end up owning a more valuable property than I started with. I won’t need the granny annex, so I downsize into a more suitable property and bank the change.
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