Long Term Care Fees
Did you know that Long Term Care fees could reduce your families inheritance?
If you own a property your family may need to sell it or have a First Charge placed on it to pay for your Long Term Care Fees!
Currently Local Authorities across the UK (excluding Scotland) could force the sale of your family's home, or more likely place a first charge on it to pay for the cost of Long Term Care Fees. It's currently happening at a rate of roughly one home every SEVEN minutes!
GET IN TOUCHCurrently Local Authorities across the UK (excluding Scotland) could force the sale of your family's home, or more likely place a first charge on it to pay for the cost of Long Term Care Fees. It's currently happening at a rate of roughly one home every SEVEN minutes!
What is the "means test"?
These days it is very likely that we will enjoy a long life although, if in later life you were to require residential care, and you live in England, Wales or Northern Ireland your Local Authority will carry out a "means test" to determine the level of your contribution toward the cost of your care. Property, savings and investments will all form part of this "means test", and if the total of these including your property is above £23,250 you will have to meet the FULL cost of your care, which in some areas could be in excess of £2,000 a week! So unless your care fees can be met from your savings and investments, or even your family then your family home will almost certainly have to be sold or have a First Charge placed on it to pay the care fees. Once you have been in care for 12 weeks (the UK average stay is just under 3 years) then the proceeds from either the sale of your property, or placing a "first charge" on it would be used to cover the cost of care fees if you or your family have no other means of paying for your care.
Once your assets have been depleted below £23,250 you will no longer have to pay for all of your care costs, but you will be required to pay a reduced rate until your assets have been reduced to £14,250 at which point all fees will be met by your Local Authority, but by that time the amount your family will inherit would have been drastically reduced and your Beneficiaries will get less than you had originally intended for them.
Once your assets have been depleted below £23,250 you will no longer have to pay for all of your care costs, but you will be required to pay a reduced rate until your assets have been reduced to £14,250 at which point all fees will be met by your Local Authority, but by that time the amount your family will inherit would have been drastically reduced and your Beneficiaries will get less than you had originally intended for them.
WARNING:
Some people believe that simply changing the Land Registry records and "give" the home to their family, before renting it back from them protects it from being used in the "means test" to pay residential care fees.
IT DOES NOT: Under the Residential Care Costs and the 1990 Community Care Act it is;
"UNLAWFUL TO DELIBERATELY SET OUT TO DEPRIVE SOCIAL SERVICES" (This is called "Deliberate Deprivation")
Legal action could be brought by your Local Authority which will aim to show that the "Gift" is an attempt to circumvent the Law, and therefore the "Gift" becomes null and void and your family home would still be used to pay for your care.
GET IN TOUCH
DON'T BE CONFUSED BY THE "SEVEN YEAR RULE"
There is no limit on how far your Local Authority can go back in an attempt to prove Deliberate Deprivation.
The "Seven Year Rule" applies to gifts made before you pass away under Inheritance Tax rules and does not apply to Long Term Care provision.
If you do sell/gift your property to your family but still continue to live in it there could be further serious repercussions these include the following:
The "Seven Year Rule" applies to gifts made before you pass away under Inheritance Tax rules and does not apply to Long Term Care provision.
If you do sell/gift your property to your family but still continue to live in it there could be further serious repercussions these include the following:
- You no longer legally own the property and may not get it back in the future if required.
- If you gifted your property to one of your children, and they subsequently divorce then the property would have to be sold as part of their financial settlement and the proceeds from the sale shared with your ex-Daughter or Son in Law. LEAVING YOU HOMELESS!
- If you gift your property to one of your children, and he or she gets into debt in the future, their creditor could legally seek to recover the debt from them by forcing the sale of the property. LEAVING YOU HOMELESS!
There are other potential repercussions, and would be happy to run through them with you.
Please do not place your home and children's inheritance at risk by taking the "advice" from well meaning family or friends. Talk to the experts at Family First Consultants, we are here to help and advise you.
And please remember - Deliberate Deprivation is unlawful, and will fail!!!
GET IN TOUCHPlease do not place your home and children's inheritance at risk by taking the "advice" from well meaning family or friends. Talk to the experts at Family First Consultants, we are here to help and advise you.
And please remember - Deliberate Deprivation is unlawful, and will fail!!!
Family First Consultants are experts in this complicated and sometimes emotive subject
During our FREE home visit we would be very happy to give you advice and guidance as to whether anything can be done legally to protect your family home and your children or Grandchildren's inheritance. It isn't possible in every case, but depending on your circumstances we may be able to improve your families overall position.
If you are concerned that Long Term Care Fees could possibly affect your family's inheritance just tell us when we meet and we can have a very detailed conversation about it because it is essential we completely understand your individual needs before we can offer any help or advice.
GET IN TOUCHIf you are concerned that Long Term Care Fees could possibly affect your family's inheritance just tell us when we meet and we can have a very detailed conversation about it because it is essential we completely understand your individual needs before we can offer any help or advice.