True, but I would love to be a fly on the wall when they say to their elderly parents oh, will you sign the house over to us and don’t worry, you can still continue to live in it but you must pay us full market rent out of your pensions.They do not need to move out to avoid IHT.
They can pay the market rent to the owners, who will need to declare it to HMRC and remain.
Of course the longer you do it from needing care the less likely the local authority will deem it deprivation of assets for care costs.
Try it within a couple of years and they’ll get you.
Christ, It seems like you are out for an argument.You are wrong.
There is no statute of limitations for local councils.
They are the sole arbiters of deprivation of assets and can go back as far as they want.
https://www.independentage.org/get-advice/health-and-care/paying-for-care/giving-away-assets-to-pay-for-care#:~:text=There's%20no%20time%20limit%20on,might%20have%20given%20something%20away.
The question mark in my post should tell you, I was asking if I was right, not telling anyone it was fact......you arguing about it with 'halfmist' makes it more confusing ;)Very confused!
Mixing up IHT rules and care rules.
I’m glad you have seen the error of your ways.Christ, It seems like you are out for an argument.
You said previous post “ try it within a couple of years and they will get you”
I responded “I am not too sure” but based on practical experience, when my mother went in to care the Local Authority asked for copies of all her financial documents for the last 3 years.
I even said in my original post, replying to someone else, that you decided to get involved in, that the Local Authority are subject to different rules and I did not mention any specific time period, specifically saying each case will be dealt with on its merits.
Is that OK with you?
Signing over your property while you’re still living in it sounds so complicated, it has got me wondering why the solicitor put for12 months on the death of one partner in the will.There are two sets of rules operating here,depending on whether you are the tax man or the local Authority..
As regards the taxman it is quite legitimate to sign over the house to avoid inheritance tax. However when it is what you call, a gift with reservation, i.e. the person making the gift is allowed to continue living in it as previous, then the person receiving the house as a gift or below market value is assessed by the tax man each year on rental market value.
This can only be avoided if the giver agrees to the house being bought back in to their estate up to the time of their death for IHT or they move out.
They must sign a form and lodge it with HMIT.
The 7 year clock will only start ticking when they move out.
As regards the Local Authority of course they will see if such a form has been signed with HMRC and if it has, then it is an open and shut case.
But they will also consider the length of time from the property being signed over to it being vacated by person making the gift
Each case will be decided on its merits but it may well end up in a battle asking the Local Authority to pick up the care fees.
You are right ,no one can predict the future.Signing over your property while you’re still living in it sounds so complicated, it has got me wondering why the solicitor put for12 months on the death of one partner in the will.
We changed it for life because you never know what the future lies.
I've told the kids to ship me off to Dignitas. I'm fucked if I'm going to see what I've worked 40 years for pissed down the drain on care home fees, and certainly not the local authority run ones.Have you compared state funded care homes and paid ones?
I have.
I'm saving up.
I think it differs from local authority. My in-laws have recently fallen foul of this ruling but they were within 3 years. Still took exception to the tone of discussions/correspondence from the wanker the council sent round to do the financial assessment.Christ, It seems like you are out for an argument.
You said previous post “ try it within a couple of years and they will get you”
I responded “I am not too sure” but based on practical experience, when my mother went in to care the Local Authority asked for copies of all her financial documents for the last 3 years.
I even said in my original post, replying to someone else, that you decided to get involved in, that the Local Authority are subject to different rules and I did not mention any specific time period, specifically saying each case will be dealt with on its merits.
Is that OK with you?
That is true. The Local Authorities differ in their approach both to the Home and to the individual residents. I had about a dozen care homes/ nursing homes as clients in the Greater Manchester area when I had my business and no two Authorities had the same rules. Trafford seemed to be the most generous and quick to settle accounts, whereas others dragged their feet and also capped the amounts they were prepared to pay per resident, with a take it or leave it attitude.I think it differs from local authority. My in-laws have recently fallen foul of this ruling but they were within 3 years. Still took exception to the tone of discussions/correspondence from the wanker the council sent round to do the financial assessment.
Slightly off topic, but we had the in-laws living with us for 3+ years before care homes became a consideration, yet the LA don't give any credit for the care we gave them and keeping them out of LA care system.
I’m in agreement with you the trouble is the kids get accused of helping you, it’s a criminal offence. Plus they won’t want to let you go because they love you.I've told the kids to ship me off to Dignitas. I'm fucked if I'm going to see what I've worked 40 years for pissed down the drain on care home fees, and certainly not the local authority run ones.
My secretary knew of someone in the community that did everything herself - didn't even tell the children, probably for the same reason you state.I’m in agreement with you the trouble is the kids get accused of helping you, it’s a criminal offence. Plus they won’t want to let you go because they love you.
You said it three years caring for them and they still want payment “robbery” strong arm stuff bank accounts, income, Plus if you have any assets and you need care in your own home you still have to pay if you have savings over the allowed limit. I don’t remember voting for any of it.I think it differs from local authority. My in-laws have recently fallen foul of this ruling but they were within 3 years. Still took exception to the tone of discussions/correspondence from the wanker the council sent round to do the financial assessment.
Slightly off topic, but we had the in-laws living with us for 3+ years before care homes became a consideration, yet the LA don't give any credit for the care we gave them and keeping them out of LA care system.
That’s the only way but if you can’t make the journey on your own, what then?My secretary knew of someone in the community that did everything herself - didn't even tell the children, probably for the same reason you state.
I didn’t know that—thanks a lot for the info! Just the other day, we were discussing the idea of setting up a trust fund for the kids. So far, we’ve already managed to put one child through college, and I even found https://academized.com for him to help with assignments, so that part is sorted. Next on the list is helping him purchase his first car, and after that, he’ll have to start figuring things out on his own. It’s a big step, but I believe in giving them the right tools and support to become independentThe usual reason why firms offer a free or cheap will writing service is they want to be named Executors on your death . They then get a blank cheque for their services for being in control of your Estate. A very important consideration is registering your will with the National Will Register. This means your latest Will is on a public record and avoids an unscrupulous relative destroying a copy they may find lying around your house after your death.
I have experience of this causing permanent family rifts.If there is money involved and they don’t think they are getting their fair share, scruples go out of the window.
They will get arrested.I've told the kids to ship me off to Dignitas. I'm fucked if I'm going to see what I've worked 40 years for pissed down the drain on care home fees, and certainly not the local authority run ones.
I know it's illegal but haven't the authorities taken a softer approach to these things in the latest decade or so? Is that not why the UK have been looking at ways of assisted dying?They will get arrested.