Can you create a trust to avoid losing inheritance to a means tested caring costs

andrew_hampshire

As I understand it; if my father needs to go into a care home he would be means tested and therefore his home would be taken into consideration and at costs of £1000 a week his £270,000 home would be wiped out within 5 years. Is there a legal way that he can leave the house and any other items into a trust for me and my siblings that is activated after his death and avoid local authorities taking this value to cover any costs for his care in later life?

Proxima_Centauri

I would ask an accountant if you have one.

I could be wrong but you're likely to get hostile replies to this on here.

heartbreak_star

It's his house. Not yours. If it has to be used for his care so be it - me and me mum are in the same position and I'd rather her have better care than me have a windfall on her death.

HBS x

Person_one

Nobody who needs to live in the house would be kicked out of it, and if your father was in a care home he wouldn't need it anymore, and the money tied up in it would surely be best used to get him the best care possible in a place of his/his family's choosing?

tea_lover

So you want your dad to go without so you get a nice inheritance?

andrew_hampshire

Apologies if my original post was not clear. What I am asking is there a way of protecting his estate without having to pay for care. If you have less than £25k I believe you don't pay for care, is there a way to take assets out of a means test?

jackieblack

andrew_hampshire wrote: »

Apologies if my original post was not clear. What I am asking is there a way of protecting his estate without having to pay for care. If you have less than £25k I believe you don't pay for care, is there a way to take assets out of a means test?

No, your original post was very clear :cool:

fairy_lights

Does your dad know you've got your eyes on his assets already?

andrew_hampshire

I don't see how my question is any different to those avoiding inheritance tax!

mwddrwg

Short answer, no. He could have technically 'kept it in the family' if he had transferred the house over to you or another relative some years ago but if he does it now it will make no difference. It will be seen as deliberate depravation of capital in order to avoid the full costs of care fees and he'd end up being asked to pay anyway.


If he goes into the home his weekly contribution is initially worked out on his income, leaving him with a sum to use for expenses (around £26.50/week). The rest of the costs for his care are deferred against the value of the property and build up until he leaves the care home or passes away. The rest of the costs are then paid back to the local authority once the house is sold. Interest is charged on the outstanding fees if the house is not sold within 6 months of the date of death (it is in Wales anyway, may be different rules in rest of the UK)

Izadora

andrew_hampshire wrote: »

I don't see how my question is any different to those avoiding inheritance tax!

Trying to avoid inheritance tax doesn't deny someone the ability to afford a decent level of care while they're still alive.