If you own your own home and are
wondering about entering residential care, you’re probably extremely worried
about the potential costs of care fees and their likely impact. Many older
people have substantial equity locked into their homes and hope to pass this
accrued wealth on as inheritances after they die. However, care home fees can
have a considerable impact on wealth and the equity tied up in your home, so
it’s important to look at all available solutions.
Should I Put My Home Into A Trust?
Many elderly people have been targeted by companies offering to put help them
set up trust funds using the equity in their homes. Basically, this entails
gifting your property to the trust for the remainder of your life. Although
this type of scheme is not illegal, it could be classed as questionable at the
time you need to move to residential care. For example, your local council will
take a detailed look at your assets when you move into care, and if it’s
considered that you have made an attempt to avoid paying fees this is termed
deprivation of assets.
What Is Deprivation Of Assets?
The intentional reduction of personal assets, such as property, money, or
income is known as the deprivation of assets. Your council will conduct an
assessment of your financial circumstances at the time you move into
residential care, or at the time you start to need social care services within
your home. This is a means-tested assessment to work out whether you should pay
anything towards the costs of your care. If your local council feels you
deliberately reduced your wealth so you didn’t need to pay for residential care
or care services, they could still present you with a bill for care based on
the original values of assets owned.
The way social care is allocated in the UK is extremely complex, and this means
it is important to seek professional advice before taking any actions that
could later be construed as deliberate deprivation of assets. If you’ve been
approached by any organisation claiming they can cut your potential liability
to residential care costs, don’t just take their word for it! These companies can
charge in excess of £4,000 for their services, yet they are often unqualified
and don’t understand all the legal ramifications surrounding the advice
provided.
If you live in Leicestershire or the Leicester city area, I can call out at any
time to discuss your worries about residential care fees. I’m a non-practising
solicitor with over 18 years’ extensive experience in inheritance tax, care
fees, wills, probate and Lasting Power of Attorney and can help smooth the path
to your relaxing retirement and reduce any concerns you may have.
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