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?

There a very few Council care homes left. None in my area - they are all privately owned and run.

I’m chuckling at people claiming it’s ok to dishonestly misrepresent a financial transaction on the basis they’ve “paid taxes”. Any other frauds you feel like committing? 😂

I find it disgusting that those who have assets to sell for their care are able to get a 'better' care than those relying on tax payers. Many of those needing care have themselves been tax payers. Care for those who need it should be exceptional across the board.

The state pension reduces after x weeks in a care home. So, yes, she would have been paying some of it.

Because in many other instances, the state pays when the money is there

ah ok.
Not much then considering all heating and meals are provided

Putting it into a trust (regardless of time), can sometimes backfire:

https://www.nmd-law.com/2022/12/09/trying-to-avoid-care-home-fees-think-twice-consumers-told/

Who has said they’re dishonestly misrepresenting a financial transaction equivalent to fraud?

We should ALL be entitled to a decent level of free or subsidised care in our final years. Sorry, but do it. The current scheme is completely unfair and disproportionate.

My grandmother lost all but £16k of her estate. She was a working class woman with nothing but a flat worth £80k or so (which was sold). So probably 80% ish went on care. A person with £1m estate would loose only a tiny portion. Until this is made fairer then people should do what they can to protect their assets. It's about time care costs had as much media as childcare costs. But no one wants to think about it. The government don't want to pay or tackle it.

I don't know where everyone is talking about but where I am a everyone (including local authority funded people) are in private homes. There are no council ones! It's all private providers. My gran was paying thousands a month along with those paying nothing.

You should have been reimbursing the LA. Under £14,250 assets there is no contribution from assets but there is from income including the state pension. You keep £32.65 for personal expenses, the rest goes towards care.

I'm in London. The sheltered housing for the elderly just round the corner from me is really lovely. Little self contained flats - some with little gardens, in a beautiful part of London with wardens and staff on site. I suppose it depends where in the country you are, though my aunts in the midlands have just gone into sheltered housing and that's lovely too. I'm not sure it's all as Bleak House as so many are suggesting on here. I'm ex forces so there are some options for me, and organisations my family can approach for help if/when the time comes. I do feel very lucky in that regard.

Also I learned from another thread that only 15-20% of the elderly go into care homes anyway. Not sure how true that is.

Putting a house into a trust in order to avoid care home fees. Presenting this transaction as having been done for some other reason.

I have a household income of £130k. I have a child in full time nursery and one a at school. I have nothing left at the end of the month. I'm overdrawn already and it's a week until pay day. I live in London in a very average area. I do not have an extravagant life what so ever. My childcare bill is over £2k a month + more over the holidays. I can't not work as we can't survive on one salary. But everything is swallowed up by childcare. I am in debt now because of it plus increasing inflation. Even after nursery my bill will still be about £6/700 a month with more over the holidays.

Things wouldn't be much better elsewhere as my salary would be lower. £130 k joint salary is NOT wealthy. Not by a long shot if you actually look into how much childcare actually costs.

Plus childcare is a feminist issue. Im lucky as I can just break even. Many can't.

We have done that with our house, we're only in our 50s

Genuine question if you’ve done this, What is your plan if you do need residential care?

It’s not even as many as that. 11 million ppl aged over 65, aprox 500,000 in a care home.

People do not think the poor are lazy. People without assets should be fully supported by the state. But people who aren't poor should loose everything they have because fate dealt them a poor hand and they got dementia and ended up in a care home for 8years.

It's about being fair an proportionate. It is fair to ask someone with £3million to pay fir their own care. It's very different for someone that has only the home they live in. It's humiliating and unsettling to have your home abnd its contents. This might also only find a few years.

My pension (public sector and state) will pay for most of most or all care I may need. DH or DS could/would top it up if needed.
MiL is currently in an NH, and she pays from her pensions. We haven't yet needed to pay anything else, but we would from her house sale (already sold via LPA) if we needed to

So - if you think your private pension/family members can pay for all the care you think you will need -why bother putting your house in trust?

It is not compusary to use your house if you have other means of paying.

The only reason then would be to pretend you have fewer assets than you do to defraud the state.

£1200 rent

Move somewhere cheaper, like middle classes tell poor people to do.

£200 council tax
Cheaper house, cheaper tax, like middle class tell poor people to do.

£2000 childcare
Have friends or family or find cheaper, like middle classes tell us poor people to do.

£250 bills
Mines £60 - use less , like the well off tell the poor people to do.

£50 petrol
Why have a car if you can't afford, use a bus, like the middle class tell poor people to do.

£50 car insurance
no car, no insurance, like the well off tell poor people to do.

£300 groceries
This is a choice, easily lowered, £300 groceries is almost as much as UC a month..
shop at Lidl like THE WELL OFF TELL US POOR PEOPLE TO DO.

Obtuse indeed..
Fwiw. I help lots of people on welfare. I'd double what they get before handing a penny to some one who can afford £300 a month on groceries whilst other people starve on the streets.
Instead of justifying why you need handouts over homeless, elderly, disabled, sick, unemployed, take a budgeting course, the tax payer isn't there to gap your poor financial choices.

This is completely unrelated to this thread but I always smile when you say Mr Monkey😆 it’s nice to see rather than the standard DH

😁

Most people, even the lucky ones with DB and state pensions, don’t have the required £1000+ a week income to pay for a care home. Going forwards, even fewer people will have DB pensions.
All those who’ve built up a private DC pension will end up paying 40% tax on some of their income if they have to draw large amounts for care fees.
I’ve spoken to over a dozen over 50’s this week who don’t know this and even worse, don’t know you can buy a care annuity that will avoid taxation.

Well that is the other option.

I always thought what would be telling is a additional voluntary NI contribution that would qualify people for paid for care costs. You could pay that or take your chances and risk using you house to pay for care later. That would sort out those who confidently say they woud be happy to pay more tax.