ParisInAKilt Posted April 20, 2019 Share Posted April 20, 2019 My folks are doing a will, they’ve been told that if they set up a trustee it means that your house can’t be used to pay for care if and when you’re needed a nursing home etc. think it’s 4k to set up. Lots of old folk on here apparently, any advice? Cheers Quote Link to comment Share on other sites More sharing options...
Ally Bongo Posted April 20, 2019 Share Posted April 20, 2019 33 minutes ago, ParisInAKilt said: My folks are doing a will, they’ve been told that if they set up a trustee it means that your house can’t be used to pay for care if and when you’re needed a nursing home etc. think it’s 4k to set up. Lots of old folk on here apparently, any advice? Cheers My advice would be dont go into a care home until you have not long left as personal care at home is free .... Quote Link to comment Share on other sites More sharing options...
ParisInAKilt Posted April 20, 2019 Author Share Posted April 20, 2019 34 minutes ago, Ally Bongo said: My advice would be dont go into a care home until you have not long left as personal care at home is free .... Yeah I think my folks would rather a one way flight to Switzerland before they went in a nursing home, having did training in one, i can see their point of view. Quote Link to comment Share on other sites More sharing options...
TDYER63 Posted April 20, 2019 Share Posted April 20, 2019 I dont know the ins and outs but I was looking at a Will recently and my IFA told me local authorities are really cracking down in this area and will go at great lengths to prove that the scheme was set up to avoid paying care home costs. This link would back this up, think your parents need to be very thorough and do their homework. https://www.moneywise.co.uk/news/2018-01-22/legal-warning-over-trusts-promise-to-beat-care-home-fees Quote Link to comment Share on other sites More sharing options...
ParisInAKilt Posted April 20, 2019 Author Share Posted April 20, 2019 21 minutes ago, TDYER63 said: I dont know the ins and outs but I was looking at a Will recently and my IFA told me local authorities are really cracking down in this area and will go at great lengths to prove that the scheme was set up to avoid paying care home costs. This link would back this up, think your parents need to be very thorough and do their homework. https://www.moneywise.co.uk/news/2018-01-22/legal-warning-over-trusts-promise-to-beat-care-home-fees Excellent, I’ll pass that onto them Quote Link to comment Share on other sites More sharing options...
Ally Bongo Posted April 20, 2019 Share Posted April 20, 2019 Remember it's different in Scotland than Nazi England .. Quote Link to comment Share on other sites More sharing options...
TDYER63 Posted April 20, 2019 Share Posted April 20, 2019 1 hour ago, Ally Bongo said: Remember it's different in Scotland than Nazi England .. I think it is more to do with unscrupulous sales people or lawyers taking large fees whilst promising a way to avoid care home fees without pointing out the downsides. I doubt these people are specific to England . I imagine Trusts are a good way of protecting your home so long as you know the potential challenges you may encounter and do everything to ensure the reasons for placing your home in a Trust look valid. Quote Link to comment Share on other sites More sharing options...
euan2020 Posted April 20, 2019 Share Posted April 20, 2019 6 hours ago, ParisInAKilt said: My folks are doing a will, they’ve been told that if they set up a trustee it means that your house can’t be used to pay for care if and when you’re needed a nursing home etc. think it’s 4k to set up. Lots of old folk on here apparently, any advice? Cheers why don't they just gift the home just now to children and take the chances that they don;t need to go into care home next few years, where upon it will become a exempt transfer ? Quote Link to comment Share on other sites More sharing options...
TDYER63 Posted April 20, 2019 Share Posted April 20, 2019 20 minutes ago, euan2020 said: why don't they just gift the home just now to children and take the chances that they don;t need to go into care home next few years, where upon it will become a exempt transfer ? Still risky see sections 8 and 9 https://ukcareguide.co.uk/avoiding-care-home-fees/ Quote Link to comment Share on other sites More sharing options...
euan2020 Posted April 20, 2019 Share Posted April 20, 2019 14 minutes ago, TDYER63 said: Still risky see sections 8 and 9 https://ukcareguide.co.uk/avoiding-care-home-fees/ I really don't know the details, so winging it with these comments But i think if you are 5-7 years down the line then should be ok Quote Link to comment Share on other sites More sharing options...
TDYER63 Posted April 20, 2019 Share Posted April 20, 2019 16 minutes ago, euan2020 said: I really don't know the details, so winging it with these comments But i think if you are 5-7 years down the line then should be ok Me neither ! I think the 7 years relates to Inheritance Tax when you die, not care home costs. I think the local authorities can chase you at any time if they think you have transferred your property deliberately to get out of care home costs. You are better of just dying ...🙄 Quote Link to comment Share on other sites More sharing options...
euan2020 Posted April 20, 2019 Share Posted April 20, 2019 9 minutes ago, TDYER63 said: Me neither ! I think the 7 years relates to Inheritance Tax when you die, not care home costs. I think the local authorities can chase you at any time if they think you have transferred your property deliberately to get out of care home costs. You are better of just dying ...🙄 You would need to have a "legitimate reason" for the transfer and the tax planning would be a legitimate reason would be enough - even 3 years possible reading the website you gave - even 6 months - but that website if also prejudiced due to them looking to upsell their services I don't think the local authorties are that smart to be chasing aged transactions, and if the parents pay a rent, there is more evidence that the xfer was final Quote Link to comment Share on other sites More sharing options...
phart Posted April 20, 2019 Share Posted April 20, 2019 7 years is inheritance tax. I look after my gran so she doesn't need to go anywhere, and we got a bit of help from the council, who installed a chair lift for her to get upstairs. Although it's technically rented it serves the purpose and is really good. Only broke down once and i was able to sort it after speaking to a guy on the phone. also what we call the red button service which is 160 a year, she has a wrist band with a button she can push which puts her through to monitored care line that can help her or contact me. I'll check with my brother about the will stuff see what he knows, he's been taking tax exams for the last years so he must know something. Quote Link to comment Share on other sites More sharing options...
TDYER63 Posted April 20, 2019 Share Posted April 20, 2019 5 minutes ago, euan2020 said: I don't think the local authorties are that smart to be chasing aged transactions, and if the parents pay a rent, there is more evidence that the xfer was final You may be right, I really am not an expert. I just know that with councils being strapped for money they are chasing every opportunity, hence the reason you need to have a good lawyer / IFA. Quote Link to comment Share on other sites More sharing options...
euan2020 Posted April 20, 2019 Share Posted April 20, 2019 20 minutes ago, TDYER63 said: You may be right, I really am not an expert. I just know that with councils being strapped for money they are chasing every opportunity, hence the reason you need to have a good lawyer / IFA. forget the IFA's - really are just salesmen - wouldn't take any advice from them - not so long ago a electrician/carpenter had a month's training and then was an "IFA" Quote Link to comment Share on other sites More sharing options...
Stapes Posted April 20, 2019 Share Posted April 20, 2019 I would suggest setting up a Power of Attorney alongside it that can be instituted when necessary. We waited too long and it takes a long time to set up. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.