Surrendering assets to save Care Home fees 23 April 2013 at 10:07AM in Over 50s MoneySaving 17 replies 2.4K views

Spelunthus

My first post . Please help me understand.

I see loads of inquires on here along the lines of the title of my post.
My honest (not trolling) question is : Why would ANYONE give up their assets now in the hope of avoiding care home fees in the future?
Local Council ("free") provison will be BASIC to say the least and the person could end up having years of uncomfortable old age.

The alternative, by keeping their assets, means they might have some cash to ease their old age and make it more comfortable. Plus, if they are lucky, a bit to pass on to next generation.

In this question, I don't even care about the legal (trusts, deprivation of assets etc.), Tax (IHT etc.) implications .... it just seems such a stupid thing to risk your future like this. Or have I misunderstood ?

I appreciate any sensible answers. Flamers and trolls keep out.:)

stebiz

Because most families wouldn't allow that to happen. I know if my Mum/Dad did the same I would still class it as their money but to get the extras in life to make their last years more comfortable.

NAR

Spelunthus wrote: »

Why would ANYONE give up their assets now in the hope of avoiding care home fees in the future?

Basically because they don't think of themselves and their comforts, they just want to avoid seeing what they have accumulated all their working lives disappearing in care home costs. Nor do they think it a problem that the tax payers in the country have to foot the bill.

Dunroamin

stebiz wrote: »

Because most families wouldn't allow that to happen. I know if my Mum/Dad did the same I would still class it as their money but to get the extras in life to make their last years more comfortable.

I think most families would allow it to happen, you've only got to read the numbers of questions on here about "protecting the inheritance" with total disregard for the parents' welfare.

margaretclare

It could be, because they feel they've already paid for their care in old age and should not have to pay again.

I've heard/read several of the following comments:

'We/mum/dad (delete as necessary) worked hard all our lives, paid our taxes, never claimed anything from the State. We were promised (this was in a speech by a Government Minister in the post-war Labour Government, Aneurin Bevan IIRC) that we'd be looked after from cradle to grave. All our needs met, in other words.

We've worked hard, did all we were told to do, fought in wars, whatever, and in return, we feel we are 'owed'. We've amassed some property/a little wealth and we feel we shouldn't be asked to spend that on ourselves. We saved for a 'rainy day', but if/when the rainy day arrives, we shan't want to use those savings - they're an inheritance for the next generation. We shall do all in our power to 'protect that inheritance', even if it means giving away the very roof over our head to descendants, to save it from being 'stolen by the state'.'

Another argument which I've seen runs thus:

'Mum/Dad are having to pay for their care just because they worked hard and saved. Whatever they have is being taken from them by the state to pay for their long-term care. By contrast, Mrs X next door to them gets the same level of care for free because she and Mr X didn't work/didn't save/spent all that that came in on holidays/cars/booze/bingo/general improvidence. It's a waste of time and effort saving - it only gets stolen from you if you need care.'

I'm sure these arguments ring a bell with anyone who inhabits these boards - we see the same arguments time and time again.

Spelunthus

Thanks to you all; how sad this all is. I suspect many of these "schemes to save on care fees" are being proposed ON BEHALF of the elderly, rather than BY them. It's like saying - "I'll give away my final salary pension scheme so that I can live free off the state pension" - madness, bonkers...!

mumps

To be fair lots of people want to leave something for their kids, I know mine tell me they want me and OH to enoy what we have and don't worry about them but I still hope they can inherit the house, £500k between the four of them. I wouldn't try to do anything dodgy to achieve that but if I can keep it for them I will. I think we are lucky as have good pension, OH already getting his but I am still waiting. We will have to see how it goes.

Mojisola

Spelunthus wrote: »

My honest (not trolling) question is : Why would ANYONE give up their assets now in the hope of avoiding care home fees in the future?

Local Council ("free") provison will be BASIC to say the least and the person could end up having years of uncomfortable old age.

Some older people have spent years scrimping and saving, planning to leave something to their children and hate the idea of spending it on themselves.

If parents are thinking along those lines, I would do a few visits to local care homes so that they can see the difference between the council funded ones and the others. Our council has a limit of under £400 a week for residential care. It's almost impossible to provide anything more than basic care for that.

margaretclare

It's also worth remembering that not all of us will end up in residential 'care'. The majority carry on living in their own surroundings even if they move into sheltered accommodation or have help coming in.

Newly_retired

My mum cleverly managed to do both - She paid for her care, but sadly only lived a few months, so there was money left to inherit as well.

Nobody know how long they will live, or whether or not they will need to go into a care home.
I wouldn't have dreamt of trying to plan any different scenario for my Mum's house/ money. The time came when she needed care, the house was put up for sale. She had 6 good months in care and enjoyed life with company and no worries about where the next meal was coming from. If she'd lived another 10 years and there was no money left, you would not hear me complaining.

mumps

Like lots of others I have never fancied the idea of a care home or sheltered housing but obviously none of us know what we might need in the future. I was looking at some flats to rent for a family member and found one in the South West, it is a block of flats that is mainly aimed at holiday market but you can rent long term. They are £1,200 a month but for that you have heating, hot water, electricity, council tax and water rates plus internet so really only need a phone. You also get housekeeping which means kitchen and bathroom cleaned every week, vacuumed throughout and clean bed linen and access to the health club with sauna, swimming pool all included and access to things like massage, facials etc but at an additional cost. There is an electric gate so secure parking, all gardening done and just over the road to the beach.

Now if I can't manage at home I wouldn't mind one of these. Obviously no nursing but I think the sauna and pool would be good for me, nice central posiiton and if I did on line shopping I could manage there even if not able to manage on my own in current home. I would certainly fancy it more than sheltered flat. Now jsut need to convince OH (no hope there then.)