bloodline trusts

xylophone

http://www.telegraph.co.uk/finance/personalfinance/insurance/longtermcare/10117822/Warning-over-care-home-trust-schemes-that-promise-to-protect-your-property.html might be worth a read.

Remember too that the tax treatment of trusts can be complex.

http://www.hmrc.gov.uk/trusts/index.htm

EstatePlanner

Mojisola wrote: »

Do you have a link about the six months period?

See CRAG 6.070 but the reference to six months is from Section 21 of the Health and Social Services and Social Security Adjudication Act 1983 - "where a resident has deliberately deprived himself or herself of an asset, the Local Authority can recover any sums it consequently has to pay towards a resident’s care costs from the person who the asset was transferred to, as long as the deliberate deprivation occurred within six months of the resident approaching the Local Authority for funding."
However, there is no set time limit beyond which the Local Authority has to ignore transfers of assets (they just can't use section 21), so it's still better to place the property into trust as soon as possible.

blackste

EstatePlanner wrote: »

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.

Great info, thanks estateplanner