Protecting property if parents go into care

[Abwettar]

Hi, I'm wondering if anyone can give me some insight regarding protecting my parent's home from care home fees?

The current situation is that I am an only child, there is no other family. Aside from the house, there are no other assets. My parents have joint ownership of their house, worth around 100k, and are both currently living there. They are both in poor health, my dad has been diagnosed with terminal cancer and my mam has been diagnosed with dementia - however they both have capacity to understand the situation at the moment. They have always been adamant on me getting the house after they pass.

There are no plans for either of them to go into a care home, I would like for them to stay in the house as long as it's safe to do so, with care from myself and carers going in throughout the day.

I was looking into putting the home into a trust, but I have read some conflicting information on if this would be considered deprivation of assets due to their poor health.

My question is, if both my parents were to make a will and each leave their 50% share of the house to me, would this protect at least part of the house? For instance, if one of my parents passed away, would their half of the house be protected from care home fees, even in the situation that the other parent had to go into a care home?

Any advice on this situation would be greatly appreciated

Thank you

I don't think it's that people are always too lazy to get off their arses to get rich. I think that is a lazy pov in itself.

I think people just don't know how. I wouldn't have a clue how to manage stocks and shares, for example.

I also have zero spare money go buy stock for a shop.

I think condemning people as lazy and that's why they're not rich is stupid. Many people are also stuck in the poverty trap.

I'd love to have financial freedom. But I lack imagination or understanding of the business world so perhaps it's just not for me unfortunately.

They aren’t giving it up and it’s not being taken away!

Is the government taking away my tax free child care because of what I earn no…I am just ineligible….this is EXACTLY the same thing!!

the mentality that older people deserve more as they have paid in all them years blows my brains!

reality is as a high tax payer I’ve probably already paid in twice as much at less than half the working age life. Never mind my “taken away” family allowance and tax free childcare.

It's a shame that you are "so far in your own arse" that you can't see how unbelievably entitled you are being.

They don't want care but they clearly need it so that's irrelevant. It's like saying I don't want to eat so why should I have to buy food to live.

If their care is sub standard then sell the house and pay for better.

The fact you think it's unfair you have to do it, but think someone else should do it at no cost to any of you is the exact reason you're so entitled.

they need care, which i am primarily providing myself if you took any notice whatsoever.

they are desperate to die in their own home and I'm doing everything I possibly can to meet those wishes.

did you not read my my other comment? the house is not worth a lot of money, it would not pay for the level of care that would be worthwhile spending money on. i'd be happy to pay for their care if it would make them happy and if i knew they were getting properly taken care of.

care homes are terrible places - i have worked in them. they cannot cater to peoples needs properly because of understaffing. if care homes were good places, i wouldnt give a crap about paying for them.

as it stands, i feel its wrong for them to lose something they worked so hard for just to receive sub standard care at the end of their lives and be miserable about it.

have you been diagnosed with dementia or a terminal illness? have you been sat awaiting death and falling apart because you want your only child to have something from you so they can live comfortably after you are gone? somehow i dont think so, so how can you possibly suggest anyone in this awful situation is entitled.

i've seen entitled first hand, and its family arguing over money and assets while their loved ones body is going cold in another room

You're completely contradicting yourself.

Not going to waste my time anymore because you clearly only want to hear people agree with you so I have no idea why you posted.

The facts remain the same. If they need care and they have the means then they are legally required to pay for it. Even if their doting daughter really wants their money for herself.

I'm guessing your parents are the generation who bought their council house. Thinking it would be something to leave for their kids.

Lots of people with money will hand their kids big wads for cash to get on the housing ladder. Big wads for uni for the grand kids. Cars for birthday presents.

So lots of money is passed down outside the main asset - the house. So if the house gets used for care so what their kids and DGC seem to be set up.

But for families who's only money is tied up they are unable to give those generous gifts. Until they die and pass the house on.

My experience is that LAs do investigate this and do treat it as deprivation of assets.

They wouldn't be "losing" their house. They are in the fortunate position of being able to use an asset to enhance their final years by paying for better care.

Btw, no-one "wants" to go into a care home. People do, however, sometimes need to. If you can continue caring for them at home, great, the house is not needed to fund care. If you cannot, then they need care which they can help fund.

The vast majority of people have worked hard and paid taxes. To be fair, only a small minority of people go into care homes. But when they do, they have to fund them. Same as they fund their current daily living (just more expensive).

Abwettar

"it would fund care that they don't want, in a place they don't want to live, to be given sub standard care anyway because the industry is on its knees.

they are currently paying for carers in the home, who i have to pick up after 90% of the time. the care industry is appalling, I know because I work in it.

there's only so much you can do to make it better for them. even with the house they couldn't afford the highest quality care home. the care providers for at home care in our area are all as garbage as each other.

it sucks that they have to give up what they worked so hard for to get such poor quality service anyway. it sucks that me and my partner are spending all of our free time picking up their care needs because their actual paid carers are so poor. its upsetting them that despite all of this the one thing they wanted to do for me was leave me some property to help me in my life, and they can't do it.

and it sucks that so many people are so far in their own arses that a simple question from a genuine person gets them being accused of being entitled."

The industry's on its knees as is most of the country partly because people aren't willing to take responsibility for themselves and instead expect others to fund their care.

As you say in your case op, even with your parents using their house, they couldn't afford the highest quality care home.. but isn't that just life? Some have more than others. Is it really fair though, for people who do take responsibility for themselves and get equity release after scrimping and saving all their lives, for others to expect their care to be funded? We would all like to pass on our hard earned wealth to our kids.

In my case my parents have done equity release on their flat and, like it or not, I have to concede that although I'd like an inheritance (and their care still won't be the very best) and it might suck as you say, their first obligation is to look after themselves before they look after their children.

@Abwettar read about mandatory disregards for care home fees. There are some circumstances where the house does not get taken into consideration. Age UK have a fact sheet linked at the bottom of this page: https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/do-i-have-to-sell-my-home-to-pay-for-care/

There are not huge numbers of circumstances that apply, but if you would fit any of the criteria e.g. aged over 60 and able to move in with them, there are options.

@Abwettar It’s not the case that every care home is shit and every carer is crap at their job, but I see why it may suit you to believe this.

So

with todays rates

assuming they have worked 16-66

40 years of tax and NI on minimum wage is 115k

so that’s what they “paid in”

so using your logic if they get that back then it will run out in 76 weeks with a £1,500 a week care fee.

where is the rest coming from??

on comparison a 100k a year salary, let’s assume for just 20 years as no one is going to get that for the full working life, that person “pays in” 477k in them 20 years!!!

My attitude to my Mums house was that it was hers while she was still alive and if that meant it needed to be sold to pay for her care then that was absolutely fine.
She had Parkinsons so I fully expected her to need care that I was unable to provide and I thought that I wouldn't inherit her house, neither of us were bothered about that.
As it turns out she died at home in her sleep which she would have wanted

What about all the other taxes people pay Income tax, VAT, etc

There is a definite thing in this country if you've got lots of money great.
But if your just teetering along, just above any sort of government support. Your almost as well never to bother saving anything.

Very odd attitude that their house is being “taken” from them. It is (if they need care) no longer suitable for them to live in so they are exchanging it for a different more suitable form of accommodation. Same as I did when I had kids and needed more space, my parents in law did when they could no longer use stairs etc. No one is taking anything away!

Your almost as well never to bother saving anything.

And if you’ve saved or have assets and you need care you’ll very likely end up in the same care home as people who’ve not saved or have assets.

Absolutely.

It has been muted at Westminster about the unfairness of the 'Dementia Tax' and it really is unfair that people who end up with certain illnesses pay for care when others don't.

So along with the 'nae pockets in a shroud' people need to be mindful that no guarantee their kids will benefit from their saving either - blow your cash on a round the world cruise if you want.
Because if you get dementia your screwed anyway.

Wtf actually wants to live with later stages of dementia being spoon fed mush? No clue who people are? Not me!

This is a good analogy. I don't believe anyone is entitled to money from the state so they can keep certain assets that they don't need.

Sorry to hear about your parents ill health and I do hope they get good care

"There is a definite thing in this country if you've got lots of money great.
But if your just teetering along, just above any sort of government support. Your almost as well never to bother saving anything."

Tbf less than half the country are net contributors. If you've been taking out more than you've been putting in all your life you can't really feel hard done by if you're expected to pay for your own care.

Absolutely this.

The OP has said the house is worth about £100k. It's not going to fund years of care. Possibly one or two at the most.

I am genuinely empathetic of having to deal with elderly and ailing parents. But let’s be clear. What you’re trying to do is to get taxpayers to pay for your parents’ care so that you inherit.

Maybe a big part of my gripe with the system is max amount of savings for a couple is £16k I don't think that figure has gone up in 25 years at least.

So it’s one of them where OP didn’t like the answers and won’t be back, then.

First of all, they haven’t paid taxes ‘all their life’. Maybe paid for 40 years, 20% of income = about £5k a year by today’s standards. So that would give them a month’s care home fees. However, income tax paid for so much more - NHS, Education, Police etc etc. so your argument is not inky invalid, it’s stupid. I can guarantee that when they bought their house they didn’t think ‘come on love, lets buy a house so we can avoid care home fees when the kids are grown up’.