Selling your home to go into care, how to avoid it?

faddy

Is it still the case that if one of a couple goes into a care home, their capital can be split 50/50 into separate accounts so that only the assets of the one in the home are then used in the assessment (though the other may be leaned on by the council to make a non means-tested contribution)?

Poppy9

Most LA now try to keep people at home rather than move them into residential care. Homecare is means tested but affordable as you keep all your income, pensions & benefits, also you can elect for Direct payment so you can choose who gives you care.

The standards in many Local Authority homes is superior to private homes. The staff are fully trained and vetted with ongoing training and supervision. All homes will meet current H&S regulations too. It used to be that LA inspected their own homes themself. Now though the Registration and Inspection of homes is independent of the LA to ensure uniform standards. If you need nursing home care this now falls under the responsibility of the NHS you would just have to pay the residential care element (or contribute to it).

Ted_Hutchinson

Poppy9 wrote:

Most LA now try to keep people at home rather than move them into residential care. Homecare is means tested but affordable as you keep all your income, pensions & benefits, also you can elect for Direct payment so you can choose who gives you care.

The standards in many Local Authority homes is superior to private homes. The staff are fully trained and vetted with ongoing training and supervision. All homes will meet current H&S regulations too. It used to be that LA inspected their own homes themself. Now though the Registration and Inspection of homes is independent of the LA to ensure uniform standards. If you need nursing home care this now falls under the responsibility of the NHS you would just have to pay the residential care element (or contribute to it).

Fuller details may be found atCounsel and Care in particular the sections on Community Care Care at Home and Housing with Care Care in a Care Home

There is also a lot of good information at Age Concern and Help the Aged

margaretclare

Pal wrote:

The idea of getting rid of my assets to my children and then living in a cheap & nasty council run care home does not appeal to me at all.

No, nor does it appeal to me either!!

I was talking to a man a few days ago who was asking this kind of question, although he said he and his wife were 65, fit and active, but his wife was worrying about this.

After I'd explained the situation to him, I asked him if he'd ever considered doing a few home alterations/improvements to make it more easy-care, more convenient etc for people getting older. 'You mean, not worry about going into a home - do what you can to PREVENT having to go into a home?' 'Yes, exactly.' And you could almost hear the light-bulb exploding in his head.

This seems so very obvious!

Margaret

frugal_dougal_3

I am actively encouraging my mother to spend her money on making herself comfortable and happy in her later years. She is very fit and healthy so this means holidays, days out, home improvements etc.

I know that my attitude towards it is making her much more relaxed and happy than she would be if she thought that I wanted her to scrimp and save in order to leave it to me.

Inherited wealth is never appreciated as much as the proceeds of having worked hard all your life.

tonys_3

oap wrote:

At the moment we have done nothing about our property and we were thinking of a trust or something, so that is out now, does anybody know much about selling your home to an Insurance 'Company and getting the cash out that way, we know you have to be careful, but has anybody done it on here? We are 69 and 74 at present. House value about £240000! We are hoping the inheritance tax will be raised, our house was £43000 19 years ago. Any helpful ideas would be appreciated. Thank you, oap

Have you tried going to Google.co.uk then selecting "pages from the uk"and
entering "equity release"?There are many websites giving advice on equity release.
The older you are before taking out any money,the higher percentage you can take out.As I understand it,you are paid the money in the form of a mortgage,that you do not have to repay until the passing of the second
person.To repay the mortgage then,the house can be sold,or your family can take out a mortgage to repay the original one.The money can be used for health care for example,and has the added advantage that the outstanding mortgage is taken into account when assessing death duties.

margaretclare

Hi oap

We did this (equity release) in the latter part of 2003. We were only allowed to release 25% of the equity as valued, when we were both 68. We did it to repay the original mortgage.

This is called a 'lifetime mortgage', there is interest but it's rolled-up until the second survivor dies. Whatever is left is planned to be left to 5 grandchildren, 3 of mine and 2 of his.

If you're interested to find out more, look on the SHIP website https://www.ship-ltd.org
Ours is with Northern Rock.

Best wishes

Aunty Margaret

Ted_Hutchinson

I do think that everyone considering equity release should take INDEPENDENT financial advice before signing up.

With interest rates almost bound to rise the compounding effect of interest on interest could mean, if people don't die when the actuaries expect, that there is little or nothing at all left for the heirs.

I'm not suggesting that it is necessary or desirable for everyone to leave money for their grandchildren. I do think that if you've earned the money you should enjoy it, however simply letting the banks and building societies have the lions share doesn't appeal to me either.

margaretclare

Ted_Hutchinson wrote:

I do think that everyone considering equity release should take INDEPENDENT financial advice before signing up.

Yes, we did this - it was all arranged by an IFA who got a better deal for us than the one we'd originally thought of.

It has been a good deal for us. The original mortgage would have gone on until we're 83.

None of our immediate offspring (my daughter, his son and daughter) need anything from us. If the grandkids get a pound each then that's fine by us. As you say, leaving money to descendants has never been our priority - no one left us anything and we've done all right!

I am still saving - stakeholder and ISAs - total of £200 a month because I reckon that in a few years' time we might be glad of a little bit extra and no, we're not interested in pension credit. We also plan our spending each year - last year the wildlife pond in the back garden cost us as much as another week's holiday, but it has been much, much better value over a long period of time. We've also replaced things like the washing-machine and fridge-freezer, but on a planned basis.

I agree that equity release is a big step which should be considered carefully.

Aunty Margaret

Pal

If I add a post to this thread will Martin thank me as well?