CGT IHT Nursing home fees and gifting

euronorris

Private care homes who currently offer a few places to LA's are a dying breed. The increase in minimum wage, coupled with the travel to work ruling has seen many private care homes removing the LA places they used to offer.


When you consider that I often see weekly care home fees in the region of £1,200 per week round here and yet the block bed rate for the area is £525, it's hardly surprising that it's unsustainable to continue offering the spaces to the LA.


Regardless. The minority of people who are receiving LA funding, but are in a private care home, really isn't a reason to spend all your money and just hope that you'd be lucky enough to still get top level care without paying extra for it.


People's situations are all, also, different. Depending on their needs, they may be in receipt of NHS Continuing Care - which everyone is entitled to, regardless of wealth, IF they meet the criteria. They may be sectioned, again - different funding rules.


People like to make a lot of assumptions based on very little, or even incorrect information. I highly doubt that your friends know that level of personal detail about another care resident.

Mojisola

Linton wrote: »

Most people wont need care home services at all, or not for any significant length of time.

The average stay in a care home is meant to be under two years.

Of course, you might be one the lucky (unlucky?) ones who lives longer than that - that's a risk.

If only one of a couple needs residential, the value of their home is ignored but other assets are taken into account.

If a couple own their property as 'tenants in common', they can leave their share in their will to people other than their spouse. That retains at least half of the value of the house.

It's important to give the survivor the right to stay, use the capital to move elsewhere, etc.

xylophone

The average stay in a care home is meant to be under two years.

Out of six acquaintances, five have exceeded this.

xylophone

If a couple own their property as 'tenants in common', they can leave their share in their will to people other than their spouse. That retains at least half of the value of the house.

But if both need care at around the same time, (I've known this happen), then the property may have had to be sold to fund the care, although in the case of the couple I knew, ( and also that of a couple of widows) there were funds available so that this was not required.

patel007

Never amazes me at the envy of some.

Re care homes, a realtive suffering from Dementia, lives in the Midlands, went into a private care home almost 5 years ago. His house which he extrnsivley renovated to a good standard and his private pension, costisng 5:5k a month approximately. The coucil will sell their home work about 230k, he bought for about 170k and spent close to 70k on it - his wife will be left with naff all. The relative, the wife and children looked after him in their home for several years then he started to attack his family, soil his clothers, the stairs, the home, take off his inco pads/etc, it was just too much to handle. So much so for the Tories looking after those that have worked hard, saved and paid into private pernsion just to have every thing taken away when very unwell . Then you get the life time benefit claimiant, lived in tax payers homes, not done a days onest work, got new car ever three yeas on dla, several hoildays and if they go into care home, usally pay naff all as rarely save more than 1k as everything is on credit.
NOT FAIR

AnotherJoe

His wife can stay in the home indefinitely. Unless he was selfish enough to own it himself and not make her joint owner.

le_loup

patel007 wrote: »

Never amazes me at the envy of some.

Always amazes me how utterly selfish some lucky people can be.

But, I'm here for the £5 argument. The £10 one is next door.

patel007

AnotherJoe wrote: »

His wife can stay in the home indefinitely. Unless he was selfish enough to own it himself and not make her joint owner.

Yes, true what you say, but as they live in the midlands and their children, and grand kids are all in Brighton and Tunbridge, she won't be able to sell up and move nearer to her family when her husband dies, sdaly soon as he is on his last legs. Their children moved from the midlands between 10 and 15 years ago as no jobs/little opportunities . The couple had talked about buying a small flat in Brighton when they retired but the demntia took over and now the house is owrhtless due to care home fees and the old lady will be stuck alone in a big home she can't afford to heat/maintain and worse of all, cant move to be closer to her married children and her grand children becsue they "got on their bike" as the Tories advocated to get a job. If there was a cap of 50k as recooomed by the think tank employed by the tories, at least she would have had some money left and kids would have helped with a 100k or so - but what kind of decent parent wants their kids to pay for their home/care?

Sadly, those with very little foolishly assume that care home fees and IHT only affect the rich, it's time they opened their eyes.

Cliveman_Pieman

patel007 wrote: »

Sadly, those with very little foolishly assume that care home fees and IHT only affect the rich, it's time they opened their eyes.

Are you trying to suggest that with almost 1.5m in assets, you are not rich?

xylophone

now the house is owrhtless due to care home fees and the old lady will be stuck alone in a big home

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS38_Treatment_of_property_in_the_means-test_for_permanent_care_home_provision_fcs.pdf?dtrk=true