National Legal Assistance

Has anyone either for themselves or with elderly parents used this company for putting a house in a trust scheme so that if one of them goes into a care/nursing home the house does not have to be sold to cover the home fees?

What have your experiences been? Are they better off using another company or having the house made over to me and my sister?

My parents are 83 and 75 and passed me a document that I cannot get my head round called a Trust Deed but it does not name who the trustees are but does name me and my sister as the main beneficiaries when they both pass on. Something about what I have read so far does not sit right.

Many thanks

DP

Replies

  • alanqalanq Forumite
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    But the house would not have to be sold anyway as long as the other spouse continues to live in it.

    "...This usually means that you will be expected to sell it to pay the fees. But your house will not count as capital if it is occupied by:
    your husband, wife or civil partner (or unmarried partner)"
    http://www.ageuk.org.uk/documents/en-gb/id8226_care_homes_inf.pdf

    I think that you are right to be concerned about the trust deed.
  • This sounds like a what is known as a "Family Protection Trust" or a "fortress trust". They are very popular with some banks, will writers and IFAs at the moment. They are sold as a way of avoiding Inheritance Tax and care home fees but there is no guarantee that they will actually work. The house may still be considered as part of the estate for Inheritance Tax and as part of your parents assets if they go into a nursing home. If the local authority has reason to believe that a significant reason for putting the house into trust was to avoid care home fees then they can treat that asset as part of the claimants assets when calculating care home fee contributions. The trusts are therefore more likely to work for a younger couple who also have an additional reason for putting their home into trust.

    I'd be very suspicious. All that may end up happening is that your parents pay £1-2k legal fees for something that won't achieve what they have been advised it will.

    Before deciding to go ahead with this, I'd suggest they seek legal advice from a solicitor.

    I am not going to buy anything unless I need it.
  • Thank you for your replies...........I am going to suggest they take it to a solicitor.............

    Things have changed slightly in the last 24 hours as my Dad was admitted to hospital with what may be a mini stroke.........find out more later........

    If anyone else has any thoughts though I would appreciate it...........

    DP
  • ErrataErrata Forumite
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    If anyone else has any thoughts though I would appreciate it...........

    DP
    Read this, it gives a flavour of how National Legal Assistance do business. I hope your parents haven't handed over any money
    http://www.thisisbristol.co.uk/Couple-concerned-lose-pound-2-000/story-13102818-detail/story.html
    .................:)....I'm smiling because I have no idea what's going on ...:)
  • Thanks you Errata.............this confirms what I think.........

    I am not comfortable with what they have put in the document at all and they have not handed over any money.............

    My own view is to get their solicitor to draw up something rather than use one of these companies...........

    DP
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