protecting property from long term care

Paulfromdartford

It seems that the answer I was looking for is a Protective Property Trust.

lisyloo

Paulfromdartford wrote: »

It seems that the answer I was looking for is a Protective Property Trust.

This would protect the property should your mum die (a less likely scenario).
If you father dies first (more likely) then it means should your mum need car she can go into overmydeadbody grove whilst her kids can keep the inheritance.

Was that what you wanted to acheive?

Paulfromdartford

Yes but it's also what my parents want to achieve.My father worked and paid taxes from the age of 15, had the foresight to have a private pension which he still pays tax on and he doesn't believe that he should pay for the same care that others who have made no provision are getting for free.
I've never looked into any kind of residential care. Are they really that bad? Surely they are governed or regulated by someone like the Care Quality Commission?

Silvertabby

Paulfromdartford wrote: »

Yes but it's also what my parents want to achieve.My father worked and paid taxes from the age of 15, had the foresight to have a private pension which he still pays tax on and he doesn't believe that he should pay for the same care that others who have made no provision are getting for free.
I've never looked into any kind of residential care. Are they really that bad? Surely they are governed or regulated by someone like the Care Quality Commission?

I accompanied a friend when she was looking for a care home for her MiL. The Council ones stank of pee and cabbage, and not only were the toilets and bathrooms shared by all residents - men and women alike - but some of the bedrooms were shared as well (same sex only, but who knows how long that will last in these 'gender neutral/be-any-sex-you-want' days).

The private homes, however, were more like luxury hotels with en-suite private rooms.

AlanP_2

The CQC do indeed regulate and inspect homes but what you need to distinguish between is "basic" "hotel" facilities.

LA will fund basic care at a local home, of which a limited number will have an LA contract but not bells and whistles.

A private home near us has a cinema room, pool and a sauna. Over the top? Possibly but they are always full with private, fee paying residents and don't take LA clients.

xylophone

MY father seems to be losing his memory. He doesn't have a diagnosis yet but we all know that he is suffering from dementia and seems to be deteriorating rapidly.

Protective Property Trust.

I'd suggest having a look at this.

https://www.aprilking.co.uk/2017/11/06/steer-clear-of-asset-protection-trusts/


However, if a Local Authority discovers that you have transferred the property into trust to avoid paying care fees, this will be classed as a ‘deprivation of assets‘. In such circumstances the Local Authority has a wide range of powers – for example, they can treat you as if you still own the property (called ‘notional capital’) and bill you accordingly.

Those peddling Asset Protection Trusts often say that the transfer would not be deemed to be a deprivation of assets because at the time of making the transfer, there was no immediate need for care and no foreseeable need in the future. Whilst the motive for making the transfer certainly is the key issue, consider that there is no other reasonable explanation for making the transfer.

In your case, there very definitely is a foreseeable need in the future and the deliberate deprivation would be glaringly obvious?

Paulfromdartford

Thank you for the explanation of deprivation of assets. I have looked into this before regarding my own estate and inheritance tax planning. Looks like Tenants in Common is the best way to go, as it leaves you in the same position as a Trust would.

Keep_pedalling

Paulfromdartford wrote: »

Thank you for the explanation of deprivation of assets. I have looked into this before regarding my own estate and inheritance tax planning. Looks like Tenants in Common is the best way to go, as it leaves you in the same position as a Trust would.

If you are in IT territory I would have thought it better for your parents to hang on to all their assets to give them the best available comfort in their latter years,

Mojisola

Paulfromdartford wrote: »

I've never looked into any kind of residential care. Are they really that bad?

Some are.

Before making any decisions, visit a range of local care homes and see the difference between the cheapest and the others.

We were lucky with Dad that a mid-range one suited him best - he wasn't comfortable with the ones that were like 5-star hotels.

I visited the only one in our area that took council-funded residents (without anyone paying top-up fees) and there's no way I could have let Dad live there.

I'm sure they were doing their best with the money available but it was definitely a place of last resort.

fred246

Where we live we don't have overmydeadbodygroves. Private and local authority funded people live in the same homes. They get the same care. The privately funded just pay more.