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

peachyprice

There are 3 choices
1. Your dad uses the equity in his house to pay for a decent care home to end his days in the best possible place but you don't get as much inheritance.

2. You pay for a decent care home so your dad end his days in the best possible place so you still get all your inheritance.

3. Your dad disposes of his assets to protect you and your sibling's inheritance and ends his days wherever the local authority finds a place for him.

Your parent, your choice. But hey, as long as you get a nice little windfall when he pops his clogs, eh.

peachyprice

andrew_hampshire wrote: »

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

Really? Who do you think is going to pay for his care, and how much choice do you think you'll get if you leave it to the local authority to pay?

fairy_lights

I'm going to get the popcorn in before this really kicks off, anyone want any?

Person_one

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?

Google 'deprivation of assets'.

Why should there be an easy way for you and your siblings to get a big chunk of cash you didn't earn while your dad has to accept whatever care the council is able to offer?

Person_one

andrew_hampshire wrote: »

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

Well, that's wrong too.

Guest101

andrew_hampshire wrote: »

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?

There's a really simple one - look after your father yourself?

Keep_pedalling

First off most people don't actually end up in care homes, and very few of those who do spend 5 years or more in residential care so the risks of you losing your entire inheritance are slim.

Yes is is possible to gift his house to you, but he would be very foolish to do so as removing his main assets also removes any choice he has in when and where he could go for residential care. The LA would also deem this as deprivation of assets so you would still end up being pursued for payment.

You also have to consider that, as is likely, your farther never needs residential care, rather than receive a tax free inheritance, you could end up with a significant CGT bill when you come to sell his house.

AylesburyDuck

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?

How silly of us to misunderstand, of course we'll all pay for his care through our taxes so it doesnt hurt your inheritance.
I think you'll find deprivation of assets is an offence.
If you cant see what your asking is just plain wrong, i suggest you adjust your moral compass.

System

Oh dear. OP you havent been on these boards long have you?

Browntoa

Op , this horse has bolted , financial planning needed carrying out years ago