To put a property in "Trust."

I agree with everything Margaret has written. Increasingly people who need help with their day to day living will be helped to stay in their own homes by way of increased services such as telecare and telemedecine. Councils are struggling to fund residential places now, they know that institutional living is the worst option for most people, and they are not happy about using their ratepayers money to contribute to the substantial profits made by private business, which is what care homes are.
Looking at the point Margaret makes in her last paragraph from a different perspective.If you don't want your children to pay for your care through their loss of inheritance are you happy that your children are already paying through taxation the cost of someone else's care who has 'got rid of' their property so their own children don't lose their inheritance?

However, to answer your question - you can give your house to your children now and rent it from them. The pitfalls to this option are that if you need residential care within a certain period of giving it away the council will not pay for your care as you will have deliberately deprived yourself of the asset. Or your children could sell it over your head and put you out on the street as part of a divorce settlement.

Speaking as a child whose parents are not in the best of health, I would far rather see my parents get the best possible care while they're alive, whatever the cost in terms of my potential inheritance, than have their property 'preserved' for me.

These options have been discussed exhaustively here: http://forums.moneysavingexpert.com/showthread.html?t=452902

I think my views on this kind of question are well known by now, and I agree with all those who've responded so far. While I fully endorse the idea of 'putting one's affairs in order' - I've very recently seen an example of what can happen when affairs are NOT left in order!! - however a woman of 60 has still got a lotta living to do. When I was 60 I was still busy working and struggling to keep the roof above MY head, never mind thinking of leaving it to others as their 'inheritance'!

The point about taxpayers paying for others is a good one. DH and I will soon both be 72 and we're both STILL taxpayers! Yes, I resent taxes going to enrich private business while at the same time the people on the receiving end of that private business - people such as the OP plans to be - get the shortest of short shrift, the very minimum of care and standards.

Margaret

Hi Errata

I have seen £60 a day quoted for residential care, that's nearly £22K a year. How accurate that is, or not, I don't know. A lot will depend on how long one lives.

Most of that cost will be for bed-and-board rather than for 'care', a bit like holiday B&B! The only 'care' you can expect in some of them is the fact that there is someone around all the time and you get your medication given to you instead of you remembering to take it. I think that's why McCarthy & Stone have jumped on to the bandwagon and are saying that, if you sell your own place, buy one of their 'assisted living' apartments, it remains yours and can be sold by your heirs when you finally turn your toes up. There may be something in that idea, and may appeal to some people. We have concentrated on modernising this 1930s bungalow and making it as convenient and easy-care as possible, and we're also still saving because we don't know what we may need in years to come.

It's also worth pointing out that an 'inheritance' does not exist until someone is dead, and that no one has a right to an inheritance which they themselves have not earned.

Margaret

Errata wrote: »

Although many offspring are unable for reasons many and various to give their parent(s) the care they may need, if the offspring are sure they will be left a substantial inheritance I simply can't understand why they don't pay for the care their parent(s) need in order to stay in their own home. The cost would easily be covered by for instance the increase in the value of property they inherit. I paid for a cleaner for my parents to make their lives easier and more comfortable, cheap as chips.

Yes, this is the kind of thing that I would hope we can afford to pay for, and when people ask me 'what on earth are you saving FOR at your age?' it's these kind of things that we hope to be able to afford if/when necessary. Having finished all the work that needs doing on the inside, we're this morning discussing having part of the front drive re-laid and re-concreted, to save someone tripping and breaking an ankle where it's uneven, and also some steps and a grab-rail going down to the garden at the back, instead of a slope which gets slippery in wet/icy weather.

The OP mentioned 'not wanting to burden her children'. While the desire for independence is laudable, one wonders why the children should have an 'inheritance' if they're not expected to do anything at all to assist Mum when she may need it?

Margaret