Selling home to pay for care

nickyhutch

Hi

Completely new to this part of the site, so if this is in the wrong place, please let me know.

Briefly, it looks like my grandma may have to go into a care home soon. Her house is held in trust with her 3 children (my mum, aunt and uncle) being the trustees. We think this was done to avoid having to sell her house to pay for care home fees, but we're not sure that would be the case. Can anyone advise (or point me in the right direction)?

Thanks for reading.

davey9998

i don't know but i would have thought that as she is still living in it then it may not actually have been a proper trust and is a gift with reservation so it could be used to pay for care

also if you just put it into trust that would be deliberate deprivation.

need more info

davey9998

also, wouldn't you want your gran to have the best care and for her to have choice of care home by paying for it - after all it was her money and her house

if you get a state care home it may be very poor

EdInvestor

It would be sensible to take legal advice on the nature of and possible reason for the trust.

ruggedtoast

Theres some kind of statute of limitations as well, so if the trust was set up in the last few years it may not be valid and they could force a sale.

If one of the beneficiaries of the will is living in the house and would be made homeless by the sale theyre less likely to pursue it as far as i remember.

drbeat

Hmm...this is something that worries me when it comes - if it ever came to - my folks going into care. They always keep telling us that me and my brother will inherit their house but I'm not so sure about that. My suspicion is that if they have to go into care they'll be forced to sell the house to pay for such services...isn't that the REAL reason why the govt want to prop up high house prices?

ruggedtoast

Well the government have got a lot of reasons for wanting to prop up house prices. The housing market being the main lynch pin of the pyramid scam they think is an economic policy being one.

Personally I think these forced sales are unfair as old people paid into the system for decades assuming this stuff would be provided for, and that they'd be able to leave something behind for their kids.

Really the government would just prefer you didnt use the services. Thats why all the policy spin about the nhs is such a joke. Brown doesnt want people to have better access to care he wants them to either not have it or pay for it themselves. If any politician had thought otherwise in the last 15 years old and young alike would have good care, like they do on the continent.

besonders1

I agree that families should sell the house to provide the best care for the person as its their money not just do what is best for the family as some seem to think that the house is their "inheritance" before the person has actually died.

But what happens if you can't sell the house, will elderly be denied care care until you find a buyer, even in the credit crunch and mortgages availability etc

feisty1

Authorities are aware some families "attempt" ways to pass on property as inheritances etc........seeking advice is the best solution.........
On a personal note, this is not aimed at you, but this is a general forum for discussion.........
I think it is appalling some families would try to reap the benefits in preference to providing a good standard of care for their elderly relative. I wouldn't sleep at night if I had put my grandma in a council home knowing she had the money to pay for her private care.
Where some people signed over ownership to families, unless they have done it very carefully, many local authorities could consider that the person has 'deprived themself of capital'. LA can investigate the history of transactions of a property and if they believe a transaction has been made to avoid meeting care home liabilities they can apply to the court for whatever order is appropriate in the individual circumstances whether that be a charge on the property or an order for sale. The longer ago that the transaction happened, the less impact it will have but they are not restricted to the seven year rule applicable to IHT. However, this is quite complex and a financial assessment is undertaken to work out what the client is liable for.
http://www.direct.gov.uk/en/HealthAndWellBeing/HealthServices/CareHomes/DG_10031523

feisty1

besonders1 wrote: »

But what happens if you can't sell the house, will elderly be denied care care until you find a buyer, even in the credit crunch and mortgages availability etc

Equity Release can be an alternative

feisty1

[quote=drbeat;17263505]Hmm...this is something that worries me when it comes - if it ever came to - my folks going into care. quote]


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