Tuearts right boot
Well-Known Member
If I remember when we went through something similar,my mum actually stayed at home with a great care package in the end but the cut of point was £23,500 in savings , anything over that they've got you.
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ISA / bonds / fix rate saver etc
- Thread starter gazinho
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MCFC Wirral
Well-Known Member
Everyone is different but I’d want nothing for myself until my family member is taken care of.
There’s only my mum to deal with but she struggled like nothing else to raise us solo and I’d want her in absolute comfort until she’s claimed.
If there’s anything left then I’d use it to fulfil ambitions.
There’s only my mum to deal with but she struggled like nothing else to raise us solo and I’d want her in absolute comfort until she’s claimed.
If there’s anything left then I’d use it to fulfil ambitions.
Alan Harper's Tash
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It’s a scam though. If they had moved her money early enough, they could have used the money for themselves and the mum would have got help with her care costs.Everyone is different but I’d want nothing for myself until my family member is taken care of.
There’s only my mum to deal with but she struggled like nothing else to raise us solo and I’d want her in absolute comfort until she’s claimed.
If there’s anything left then I’d use it to fulfil ambitions.
As it is, care homes charge a fortune because it either fleeces the family or the council.
My gran’s care home cost £750 per week.
abu13
Well-Known Member
The care system is truly fucked, I have nothing but total respect for the carers but the companies are generally robbing bastards
MCFC Wirral
Well-Known Member
I tend to find the law doesn’t have a conscience. I’m a former Court Clerk and things can be very strict.It’s a scam though. If they had moved her money early enough, they could have used the money for themselves and the mum would have got help with her care costs.
As it is, care homes charge a fortune because it either fleeces the family or the council.
My gran’s care home cost £750 per week.
Deceptively claiming when the money was hidden constitutes fraud.
Alan Harper's Tash
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The scenario that the OP painted would be considered fraud, I suspect, if the money vanished.I tend to find the law doesn’t have a conscience. I’m a former Court Clerk and things can be very strict.
Deceptively claiming when the money was hidden constitutes fraud.
Families should have discussions about putting houses etc. in others’ names once they hit 55 or whichever age they choose.
Kompany Car
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A PPT or Life Interest Trust is the way to go. Costs about 4-5k and it doesn’t protect the whole amount, but does protect 50% of the property value and the individual still owns the house and any rental income from it. In the latter you can also place investments which the individual can still access the income from or you can leave it within the trust. There is however a cost for accessing it.The scenario that the OP painted would be considered fraud, I suspect, if the money vanished.
Families should have discussions about putting houses etc. in others’ names once they hit 55 or whichever age they choose.
Main issues with handing the house over is that you need to do a transfer of equity which means the person who is given the house has to pay stamp duty, but is also subject to CGT on the transaction. It also doesn’t have any guarantee that the local authority won’t class it as deprivation of assets, the 7yr rule applies to inheritance tax only not the assessment for deprivation of assets.
To pass on as much money as possible without it being included for care home fees some of the other options are investment in personal assets that retain their value. Art, wine, classic/vintage cars, jewellery etc or taking out a life insurance policy. Of course the best option is to spend it before you get to the point of needing care, those fine champagnes and gambling habits are very expensive ;-). If you’re a person of means, then offshoring is also a good option.
One thing that is blatantly apparent however is that all these clever avoidance tactics are much more accessible if you are already wealthy rather than the average family.
Alan Harper's Tash
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Thanks for this. Very informative.A PPT or Life Interest Trust is the way to go. Costs about 4-5k and it doesn’t protect the whole amount, but does protect 50% of the property value and the individual still owns the house and any rental income from it. In the latter you can also place investments which the individual can still access the income from or you can leave it within the trust. There is however a cost for accessing it.
Main issues with handing the house over is that you need to do a transfer of equity which means the person who is given the house has to pay stamp duty, but is also subject to CGT on the transaction. It also doesn’t have any guarantee that the local authority won’t class it as deprivation of assets, the 7yr rule applies to inheritance tax only not the assessment for deprivation of assets.
To pass on as much money as possible without it being included for care home fees some of the other options are investment in personal assets that retain their value. Art, wine, classic/vintage cars, jewellery etc or taking out a life insurance policy. Of course the best option is to spend it before you get to the point of needing care, those fine champagnes and gambling habits are very expensive ;-). If you’re a person of means, then offshoring is also a good option.
One thing that is blatantly apparent however is that all these clever avoidance tactics are much more accessible if you are already wealthy rather than the average family.
Mr Kobayashi
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If I remember when we went through something similar,my mum actually stayed at home with a great care package in the end but the cut of point was £23,500 in savings , anything over that they've got you.
That's still the figure I think as I used to work in a shared office with a loud duty social worker for adult social care who'd ask that question to clients making applications.
Mr Kobayashi
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The care system is truly fucked, I have nothing but total respect for the carers but the companies are generally robbing bastards
Something central government should accept blame for as they forced local authorities to publish how much they spent, when they had plans to reform the sector. And then abandoned the reforms when they realised how much money it would require pumping in. But care costs have doubled nationally.