Care cost

callycutenose

How can i protect my saving ,pension and property from care cost?

le_loup

saving pension and property are there for a rainy day.
If you need care, you're all set.

dunstonh

callycutenose wrote: »

How can i protect my saving ,pension and property from care cost?

Yes. However, do you really fancy having the aspiration of living on local authority care?

AnotherJoe

callycutenose wrote: »

How can i protect my saving ,pension and property from care cost?

Go to Beachy Head just before it kicks in.
Give all your wealth away 7 years before it kicks in.

Mojisola

AnotherJoe wrote: »

Go to Beachy Head just before it kicks in.
Give all your wealth away 7 years before it kicks in.

That works for inheritance tax but not care costs.

woolly_wombat

callycutenose wrote: »

How can i protect my saving ,pension and property from care cost?

Age UK have a fact sheet on deprivation of assets:
http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS40_deprivation_of_assets_in_the_means_test_for_care_home_provision_fcs.pdf?dtrk=true

The definitive document is the Charging for Residential Accommodation Guide (CRAG):
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301250/CRAG_34_April_2014.pdf

It's complex and requires specialist advice.

Dunstonh has pointed out that you would end up relying on local authority funded care. Do you really want that?

AnotherJoe

Mojisola wrote: »

That works for inheritance tax but not care costs.

Wow. Didn't realise that.

So how would they get it back or is that a different matter ?

Mojisola

AnotherJoe wrote: »

Wow. Didn't realise that.

So how would they get it back or is that a different matter ?

The council can assess you as if you still have the capital that you have given away. How you then pay the care home fees is your problem.

woolly_wombat

AnotherJoe wrote: »

Wow. Didn't realise that.

So how would they get it back or is that a different matter ?

The Care Act 2014 has provision for recovering charges from a third party if you are deemed to have deliberately deprived yourself of assets in order to reduce care charges.

So, for example, if you gave away a load of money to your children in order to reduce your assets to below the threshold where you would have to pay for your care, there are powers to then charge your children the amount you would have paid if you hadn't given away your money.

Try googling "care act 2014 recovery of debts".

Paul_Herring

woolly_wombat wrote: »

So, for example, if you gave away a load of money to your children in order to reduce your assets to below the threshold where you would have to pay for your care, there are powers to then charge your children the amount you would have paid if you hadn't given away your money.

And to explicitly point it out - the 7 year rule that applies to inheritance tax is not observed for deprivation of assets - it can go long before the 7 years.

(Though not sure about the kids being liable for the cost - merely that you'd be assessed as if you hadn't have given them away...)

greenglide

Dunstonh has pointed out that you would end up relying on local authority funded care. Do you really want that?

My mother in law is in residential care which is paid, in part by the local authority - they did an assessment, she pays some, they pay the rest.

The LA has a negotiated rate with the home which we chose, the LA left it totally up to us. The LA rate was also available to my mother who was self funding, the difference isn't that much less.

The level of care is exactly the same, there are no "local authority rooms" or anything like that. This is one of the national providers or care homes.

Of course it isn't in the South East but that isn't our problem.