Safeguarding savings and home if Care is required

oliveoil54

Clifford_Pope wrote: »

We are fortunately not (yet) at this stage, but have done POAs and asset arranging with this factor amongst others in mind.


We were advised that it is important to write down a clear record of your reasons for making any changes, which could include:


Optimum arrangement of assets and income for tax reasons (different tax bands)


Clearly stating in the POAs that they include the power/intention to make significant capital transfers for inheritance tax, children's house deposits, education, etc.


Wish to safeguard children's inheritance with regard to inheritance tax.


There are plenty of good valid reasons for transfering assets that have nothing to do with care fees .If you set up trusts, lay down a record of minutes of the meetings documenting discussions and decisions. Make sure these are discussed and documented with advisers and family, etc, to lay down a trail of evidence in case of future need.

I’d love to be able to safeguard our children’s inheritance, but think realistically especially if I need care later as well, that is not going to be possible! All I’m trying to do now is ensure husband is cared for as best as possible whilst being able to manage financially myself including being able to move again without loosing a significant % of the houses value to buy another.

Keep_pedalling

Clifford_Pope wrote: »

We are fortunately not (yet) at this stage, but have done POAs and asset arranging with this factor amongst others in mind.


We were advised that it is important to write down a clear record of your reasons for making any changes, which could include:


Optimum arrangement of assets and income for tax reasons (different tax bands)


Clearly stating in the POAs that they include the power/intention to make significant capital transfers for inheritance tax, children's house deposits, education, etc.


Wish to safeguard children's inheritance with regard to inheritance tax.


There are plenty of good valid reasons for transfering assets that have nothing to do with care fees .If you set up trusts, lay down a record of minutes of the meetings documenting discussions and decisions. Make sure these are discussed and documented with advisers and family, etc, to lay down a trail of evidence in case of future need.

Regardless of the instructions you place on an LPA your attorneys do not have the authoriy to make such gifts.

http://www.cityam.com/264962/lasting-power-attorney-and-iht-planning

LHW99

I’d love to be able to safeguard our children’s inheritance, but think realistically especially if I need care later as well, that is not going to be possible!

Don't feel guilty about that. It may never happen that you need residential care, and most children would much prefer their parents to be well cared for, than be left money but know their parent suffered.
Your assets are for you, and your husband would want anything remaining after his passing used primarily for your benefit.

oliveoil54

LHW99 wrote: »

Don't feel guilty about that. It may never happen that you need residential care, and most children would much prefer their parents to be well cared for, than be left money but know their parent suffered.
Your assets are for you, and your husband would want anything remaining after his passing used primarily for your benefit.

Thank you - lovely words!

System

Keep_pedalling wrote: »

Regardless of the instructions you place on an LPA your attorneys do not have the authoriy to make such gifts.

http://www.cityam.com/264962/lasting-power-attorney-and-iht-planning

I took advice and confirmed it with someone senior at the Office of the Public Guardian (not the ordinary help-line).
You can make gifts if they are specifically listed in the Preferences section, with reasons, and a proviso that making them would not detract from the finance available for safeguarding the best interests of the person. I was told by the OPG that wording to this effect was essential, and such gifts subject always to a review of the overall finances.
Finally I submitted a draft of the proposed LPA to the OPG for clearance, after which it was cleared and registered.


I was also advised that the person should write individual letters outlining these wishes, to anyone appropriate, and lodge a copy with the bank.


In our own case, I was concerned that having already made a gift to our eldest daughter for a house deposit, similar gifts to our two younger children in due course would be permitted. The OPG confirmed that these were exactly the kind of circumstances that would be covered by these arrangements.




Of course I appreciate that circumstances vary and these are not those of the OP, but I was just making the point of the wisdom of planning and laying down a trail of documented decisions and reasons.

oliveoil54

Clifford_Pope wrote: »

I took advice and confirmed it with someone senior at the Office of the Public Guardian (not the ordinary help-line).
You can make gifts if they are specifically listed in the Preferences section, with reasons, and a proviso that making them would not detract from the finance available for safeguarding the best interests of the person. I was told by the OPG that wording to this effect was essential, and such gifts subject always to a review of the overall finances.
Finally I submitted a draft of the proposed LPA to the OPG for clearance, after which it was cleared and registered.


I was also advised that the person should write individual letters outlining these wishes, to anyone appropriate, and lodge a copy with the bank.


In our own case, I was concerned that having already made a gift to our eldest daughter for a house deposit, similar gifts to our two younger children in due course would be permitted. The OPG confirmed that these were exactly the kind of circumstances that would be covered by these arrangements.




Of course I appreciate that circumstances vary and these are not those of the OP, but I was just making the point of the wisdom of planning and laying down a trail of documented decisions and reasons.

I agree and when I finally sign for the sole ownership we both at the suggestion of Mojisola (see below) are going to write a letter explaining our reasons for doing this exactly as Para 2 suggests, because it describes both our concerns. To be lodged with the Solicitor.

“AIUI, for deprivation of assets to be proved, it has to be shown that the arrangement was made with the intention of being able to claim means tested benefits.

Your husband has a completely different reason - to make sure that you have the flexibility to move if necessary to stay close to your family.

I would go with your solicitor's advice - and get him/her to make notes about the reasons for putting the house into your sole name.

If it's challenged at some time in the future, you can deal with it then.”

P933alilli

Hi, i live with my elderly Mum who has been diagnosed with dementia. We have joint tenancy. I'll be 60 in 2 years and ive always lived at home never moved out. Should she need care whether in a care-home or here would they take equity of her 1/2 to pay costs? Thanks!

Linton

Collyflower1 wrote: »

Hi, i live with my elderly Mum who has been diagnosed with dementia. We have joint tenancy. I'll be 60 in 2 years and ive always lived at home never moved out. Should she need care whether in a care-home or here would they take equity of her 1/2 to pay costs? Thanks!

If your mother needs to go into a care home her assets will be assessed and if greater than £23250 the council will expect her to pay her own fees. With a jointly owned house she will be assumed to own half the equity. The council cannot take money from your mother unless with the authority of the courts, they will simply refuse to contribute to the cost. How the care costs are paid for is up to her or her PoA.


The house will be disregarded if the care is temporary or if the house is occupied by a spouse or a relative who is aged 60 or more.

Sea_Shell

Have you also considered in your POAs and wills, what happens in the event that something unexpected happens to you first?

Is your Daughter a second attorney for you both and executor?