bloodline trusts

blackste

Guys,

I hope this is the right section for this post.

My mum is looking at ways to avoid losing her house if she has to go into care. She has seen some adverts for bloodline trusts, and i was wondering if anyone here had any experience of them, and if they do what they say they will. I believe they are expensive to set up (3k), but in the long term, they would be a huge saving for the family.

Thanks in advance.

Mojisola

blackste wrote: »

My mum is looking at ways to avoid losing her house if she has to go into care. She has seen some adverts for bloodline trusts, and i was wondering if anyone here had any experience of them, and if they do what they say they will. I believe they are expensive to set up (3k), but in the long term, they would be a huge saving for the family.

And would mean that your mother would spend her last years in a home that works to the low level of funding that the council provides.

kidmugsy

Google "deprivation of assets"

PlymouthMaid

The best way to avoid losing her home would be to either support her well to stay in her home or have Mum to live with one of her children. If she needs to go into a home then she would no longer need her house and it can be sold to pay the fees. I know it means less or no inheritance for her children but that is how it works for home owners unless they fit the very strict criteria for funding from NHS/council. The other alternative is never to be a homeowner but then you will get the basic care and of course no inheritance anyway.

blackste

Mojisola wrote: »

And would mean that your mother would spend her last years in a home that works to the low level of funding that the council provides.

Actually i was just thinking of kicking her out on the street, she should last too long, so wouldnt suffer too much.

blackste

PlymouthMaid wrote: »

The best way to avoid losing her home would be to either support her well to stay in her home or have Mum to live with one of her children. If she needs to go into a home then she would no longer need her house and it can be sold to pay the fees. I know it means less or no inheritance for her children but that is how it works for home owners unless they fit the very strict criteria for funding from NHS/council. The other alternative is never to be a homeowner but then you will get the basic care and of course no inheritance anyway.

This is my personal preference Plymouthmaid, i would have her or my dad live with me without second thought. My mum and dad have both worked hard all their lives, and hate the thought of possibly leaving us without inheritance (as if we give a monkeys). You know how oldies are about these things, so i said i would find out what i could.

PlymouthMaid

I know what you mean as my Mum is exactly the same and I dearly hope that she never needs to leave her much loved home. She has told me before now that the only way she will leave is in a box but life doesn't always work out as planned sadly. It is never as easy as it should be to have a parent live with you I guess as for starters if I gave up work I would probably lose my house pretty quickly myself. Luckily Mum is fine and hopefully will remain so for many years. My Dad is in a nursing home (advanced Parkinson's disease) but because he was transferred direct from hospital and could not go home he fulfils the funding rules luckily. I certainly don't recommend ending up in hospital etc but if ever it happens to your Mum and she cannot go home do ask about this funding (I think it was called continuous care funding).

Mojisola

PlymouthMaid wrote: »

My Dad is in a nursing home (advanced Parkinson's disease) but because he was transferred direct from hospital and could not go home he fulfils the funding rules luckily. I certainly don't recommend ending up in hospital etc but if ever it happens to your Mum and she cannot go home do ask about this funding (I think it was called continuous care funding).

Lots of people transfer from hospital to care homes - that doesn't mean they get funded. Continuous care funding depends on the medical needs of each patient.

PlymouthMaid

Yes I know there are strict criteria. I think I referred to that higher up the page but I could have been more specific above, true. I was just suggesting that if that happened people should enquire as I imagine it isn't always freely offered and some people miss out.

EstatePlanner

The property and other assets can be placed in trust for the benefit of the children, grandchildren or indeed anyone else. This should ring-fence them from care fees.

Provided that the need for care was not forseen, and she doesn't require care for at least 6 months from the date of the transaction "deliberate deprivation" does not apply. This can be checked by an Estate Planner.

She would be wise to setup and register now a "Lasting Power of Attorney" (LPA) for both "Property and Finance" and "Health and Welfare" - these do not need to be used immediately, but allow her nominated attorneys (e.g. you, other family) to make decisions about both her property and care once she is unable to.

She should also write a will.

£3,000 should cover all of the above (apart from LPA registration, which is free for some people anyway). If it sounds expensive, remember that care fees can be £500-£1,000 per week. If she loses mental capacity without an LPA, deputyship from the Court of Protection takes 6-12 months to progress and at least £3,500 in the first year, £2,000 per year ongoing.

I'm sorry if that sounds scary, but the reality is that it IS scary for those that have to cope - and that's probably you.

Mojisola

EstatePlanner wrote: »

Provided that the need for care was not forseen, and she doesn't require care for at least 6 months from the date of the transaction "deliberate deprivation" does not apply. This can be checked by an Estate Planner.

Do you have a link about the six months period?

Added - I see what you're talking about - https://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS40_deprivation_of_assets_in_the_means_test_for_care_home_provision_fcs.pdf?dtrk=true
Section 4.

If you read on the second paragraph, you will see that the LA might not be able to reclaim the money given away but it can assess you as still having it.