Putting home into family trust to avoid nursing home fees

borkid

pollypenny wrote: »

The trust Lisa mentions was badly drawn up. It'susual to leave the surviving spouse with access to the estate for all needs.

I'm not talking about world cruises, but what everyone would consider reasonable.

Exactly this is what happens with our trust. If I remember correctly the trust only comes in to effect when one of us dies. The solicitor even advised us not to have either of our children (beneficaries) as executors as they might put undue pressure on the remaining spouse.

Savvy_Sue

Hear hear mumps!

mumps wrote: »

I am sure alot of the above can be done "on the cheap" but we don't offer a "cheap" service.

Increasingly those running 'cheap' residential homes are finding that it just can't be offered on the cheap: which is why so many are going out of business!

Itismehonest

borkid wrote: »

Exactly this is what happens with our trust. If I remember correctly the trust only comes in to effect when one of us dies. The solicitor even advised us not to have either of our children (beneficaries) as executors as they might put undue pressure on the remaining spouse.

My experience of trusts is, as with most things legal, the people that benefit the most are the solicitors involved.

mumps

Savvy_Sue wrote: »

Hear hear mumps!Increasingly those running 'cheap' residential homes are finding that it just can't be offered on the cheap: which is why so many are going out of business!

That is true, some of them get pretty grim before they finally close down. I would like to be able to leave something to my children but I don't think they would want me to end up in some dump so that they can have some cash and to be honest with you if they did want that I don't think they deserve my money.

seven-day-weekend

What happens if someone self-funds, from the sale of their home, a place in a five-star care home of their choice and then the money runs out?

Pollycat

mumps wrote: »

I am a manager in care, the cost seems disgraceful to you but I promise you it is not cheap to run a good home. First of all cost of suitable premises, then registration costs, equipment including industrial washing machines (don't come cheap.) Heating costs tend to be very high. Insurance is another big expense. Staff, not just wages but CRB's training sick pay holidays etc. Food, maybe catering for special diets. Carpets, furniture etc, we find these need replacing frequently. Maintenance costs, pat testing equipment etc. Water rates, telephones, vehicle costs.

I am sure alot of the above can be done "on the cheap" but we don't offer a "cheap" service. I can honestly say if I needed care I would be happy to go into one of the houses we run, I can't say that about all homes. We bought a home off a company offering "cheap" care. We felt like crying when we viewed the place, living in a second rate place that was stinking is not how I want to end my days and it is certainly not something I would have wanted for my parents.

When looking for a care home for my Dad earlier this year, I found some good information on the internet about what to look for in a care home.

One ended with:
"Ask yourself - would I be happy to live here for the rest of my life?"

A very good point, I thought.

@savvyme

We (Mum and my sisters) would much rather be paying for Dad's stay in a Care home than the position we are in now - he sadly died 3 months ago.
But we don't begrudge or regret a penny of the fees we paid.
He was content, safe and well-looked-after.

Do you begrudge paying (I assume the funds are coming from your partents' savings or property) for your parents to be in a care home?

Oldernotwiser

Pollycat wrote: »

Do you begrudge paying (I assume the funds are coming from your partents' savings or property) for your parents to be in a care home?

Whilst I agree with everything you've written, it's worth pointing out that if the money's coming from the parents' savings or property, it isn't the child who is paying, even if they often talk as if that's the case!

midnight_express

seven-day-weekend wrote: »

What happens if someone self-funds, from the sale of their home, a place in a five-star care home of their choice and then the money runs out?

Once their savings go below a certain level (approx £22k) they will on a means tested basis get some funding from the local authority. If it is a very expensive home the person in care or their relatives will have to pay top up fees. Sometimes the elderly person has to move to a cheaper home.

It is worth noting that care is never fully funded as a contribution from income is always required.

Mojisola

midnight_express wrote: »

It is worth noting that care is never fully funded as a contribution from income is always required.

That's right. If you are "fully funded" all your income is taken from you except for a "personal expenses allowance" of £22.60 a week.

borkid

Itismehonest wrote: »

My experience of trusts is, as with most things legal, the people that benefit the most are the solicitors involved.

Actually in this case (12 years ago) the total cost was only a little more than it would have been to write the will which we had done at the same time. We had used the same solicitors' group for several house moves previously and they always did a good job and reasonable fees.