Putting house into trust to avoid care home fees

[Winterday1991]

A friend mentioned that her parents had put their property into trust to avoid potential care home fees liability. Is this as simple as she suggests? Would this not be classed as deprivation of assets by the council?

Thank you. I think some of the comments we read about council run homes can come over as scary for those dependent on them to care for a family member, so it's important to show the other side too.

Our only wish is that they'd made that move sooner; they've really needed care for a long time and fought it up until this year.

They do miss each other so terribly though - just celebrated their 70th wedding anniversary this year 🥹

Why not be more specific on which "free loaders" you mean?

Anyone who doesn't work? Just those you feel are more able? Disabled? Carers?

Couldn’t agree more with upthread posters For gods sake! Is there no end to this?

Perhaps the key to this is to look after your health and try your absolute best to avoid needing care as you age.

We know that so many people are drinking too much, overweight, sedentary . You’re not going to be able to mitigate against every old age ailment but you can give it a bloody good shot and stay out of these places. .

Some homes inflate the fees paid by self funding residents to top up the amount paid by the LA for residents who do not have the means to pay for themselves.

Some homes inflate the fees while paying staff minimum wage, while being run by a private equity fund.

So by avoiding paying for a care home you are avoiding your money going into a private equity group fund. If government want to stop public money being paid to private (equity) companies then it's their business to sort it out, not mine.

Also see academy trusts, private health companies, energy companies etc profiting from public services. Excuse me if I'm not desperate to give them my house as well as emptying my wallet into their coffers every month.

I think people are also confusing putting the whole house in trust to avoid care fees before anyone has died

or having a will that creates a trust upon the death of the first spouse
this type of trust created by a death means that the half belonging to first to die goes into a trust for any beneficiaries and can’t be touched for care home purposes or should the surviving spouse get remarried the new wife /family can’t use the trust half of the house as such

This is very common for second families to ensue that the kids of the first husband / wife gets at least their dead parents share of the estate and not any new wife

but it also protects that half from care home fees

Being happy to pour your home and contents as well as all the regularly taxes we pay into state funds for the wider benefit of society only works when you have a government who believe in the wider benefit of society, in collective goals and not corruption, personal ideals and diverting public funds in the direction of their fat cat mates or into their own pockets via companies they have invested in, as much as possible.

This government make me want to look after my own and hang onto everything I have as much as possible, after all that's the example they are giving us.

@Holidayflops the point of buying a home is to have somewhere to live. HTH.

People thinking the state should fund all elderly care are being hopelessly naive about the looming demographic time bomb we are facing.

My mother did this. It had to be in place for 7 years (Scotland) but we never needed it. I've done the same with my house and it's been running for 4 years so far.
My SiL was horrified at the idea and said it was fraud.

It’s very easy to demonise people who do this when you’re looking from a position of privilege honestly. I feel if people want to put their old age care in the hands of the council and only have basics just to ensure their family get something then it’s up to them.
DH and I for example have always worked full time since coming to live in the UK alone, we never had anything handed to us that we’ve not worked for, paid our dues to the economy. I don’t begrudge the govt spending our money on the greater good of the community however the only asset we have is our modest house, bought 6 years ago with a 30 year mortgage at the time (after saving for years whilst paying rent and full time childcare).
We won’t get any inheritance, house prices keep increasing and there’s always a worry that the generation of our grandchildren may find it hard to ever buy a property.
If putting our house in trust when the time comes will mean our future grandchildren (who will also be hardworking and paying their dues) will be able to get an inheritance good enough for a house deposit and not have to suffer like we did then I’m all for it and I don’t care how that makes me look.

Why should I pay for a care home if I have worked and paid for a mortgage all my adult life? I want my kids to benefit from my house. Especially as they cannot afford to get a mortgage at the moment

This.

MIL has done this and I think it’s wrong. She had a double hip replacement and can no longer get upstairs but refuses to move into a bungalow because it would cost more and eat into BIL and DH’s inheritance. DH has told her he doesn’t care about that but she won’t be told.

Then your kids can look after you

I also don't want to pay £1k a week for substandard care - or the same care as the free person next to me

Thanks for info - it is good to know.

@PositanoBay You appear to be confusing paying a mortgage - which is buying a private asset for your to use, with paying taxes.

We all pay tax, not all of us will be in a position to inherit.

My MIL has had excellent care in her home. She was moved from hospital to a hospice to a nursing home and has been there for nearly five years . . . bed-ridden. Not exactly what was expected.

Do it if you want to play RussianRoulette with your future.

Actually nobody gets it free. Even someone with zero savings and only the state pension will be making a contribution.

And here’s the 7 year misinformation again 🙄
There is NO fucking time limit when it comes to DOA, NONE.

There are so many misconceptions about funding care and what it costs to run a care home. We've been through the lot with my parents self funding and ILs LA/continuing care funded and I want to bang my head on the wall every time there is one of these threads.

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

There is not a time limit but the longer away the time was that you spent your money the less likely it was that you could have anticipated needing care.

But what money gives you is choice. My Mum was a carer (it’s always been shit money/conditions) so couldn’t have savings or have a private pension. She now requires care and the conditions of this with the LA is awful. She has home care twice a day and can’t go out and do anything as she has a 5 hour window where the carers can come and provide care and as it’s through social care she can’t complain.
People have no idea how bad social care funded care is!

Translation:

Poor people who don't have the same opportunities, money or privilege should have to pay...

Have you heard yourself?

not true

DM got hers free