Putting our house in trust Help Please

xylophone

At 65ish he would expect to pay less than £40k 

Relative's relative was six years in care (aged 91- 97)  - in her final placement ( nursing home) where she was eligible for the nursing care component reduction, she was still paying well over £60,000 a year.

She had occupational pension/state pension  ( after tax), investment and savings income and higher rate Attendance Allowance but even so, was drawing down on capital arising from the sale of the family home.

If both husband and wife end up in care ( I knew a case - husband in nineties with very poor sight and hearing loss, wife with dementia), you are looking at very significant costs.

They were fortunate enough to be  able to afford a double suite in a suitable care home without needing to sell their property, but for the average couple, I doubt that would be an option.

Sailtheworld

xylophone said:

At 65ish he would expect to pay less than £40k 

Relative's relative was six years in care (aged 91- 97)  - in her final placement ( nursing home) where she was eligible for the nursing care component reduction, she was still paying well over £60,000 a year.

She had occupational pension/state pension  ( after tax), investment and savings income and higher rate Attendance Allowance but even so, was drawing down on capital arising from the sale of the family home.

If both husband and wife end up in care ( I knew a case - husband in nineties with very poor sight and hearing loss, wife with dementia), you are looking at very significant costs.

They were fortunate enough to be  able to afford a double suite in a suitable care home without needing to sell their property, but for the average couple, I doubt that would be an option.

These numbers are why people are scared of the costs. Yes, for some, they can be horrific but they're outliers - people are less likely to need care and they'll spend less time in it than they think.

Not sure of the original source data of my numbers but they were quoted by an insurance company which reckoned that the average 65 year man or woman could expect to pay £37k and £70k respectively during their lifetimes on care.

We found the council very helpful when it came to care home fees for my relative(s). It reminds me of something that might help too - there's a 12 week care fee disregard where the council will fund the first 12 weeks if you have a house but cash of less than £23k. Keeping below this value might be worth Arthur thinking about - 3 months is a big chunk of time for a care home resident

bigadaj

A move to Scotland maybe?

getmore4less

A lot of trust loopholes got closed. 
Once a family start to become self sufficient in housing across a generation a good way to reduce IHT liability is skip a generation or two sending assets to the youngest(with the best incomes) and keep the properties of the old mortgaged rather than use an inheritance to pay off debt. 
Assets down income up. 
Those lower down with income can now gift up the chain to pay the mortgages. 

It's one way to keep wealth in a family. 

Albermarle

getmore4less said:

A lot of trust loopholes got closed. 
Once a family start to become self sufficient in housing across a generation a good way to reduce IHT liability is skip a generation or two sending assets to the youngest(with the best incomes) and keep the properties of the old mortgaged rather than use an inheritance to pay off debt. 
Assets down income up. 
Those lower down with income can now gift up the chain to pay the mortgages. 

It's one way to keep wealth in a family. 

You would need to trust your family a lot to do this. Plus various new partners and priorities may come along and stress relationships.

John_

arthurx1234 said:

Gadfium said:

arthurx1234 said:

Yes we are trying to avoid care home charges

Niiice....so you want the taxpayer to fund your care in your dotage. Why would you want to throw yourself on the benevolence of others and why would you want to spend your last years in a place that won the council contract by being the lowest bidder?

When you go on holiday, do you pick the absolute cheapest doss-house that you can find and eat from soup kitchens too?

As i have paid tax and NI contributions for 45+ years and never been given a hand out from the state ie dole, universal credit, housing benefit, free dental etc etc, So i must have paid for numerous scumbags to sit on thier !!!!!! in the house smoke and drink and drain the nhs and taxpayer ie ME and possibly you, so its time for me to be "creative" with my assets, but ironically  it will not be me who benefits but the kids,  sometimes i wish we were like Wayne & Waynetta slob

Arthur

Unless you were a high earner you’ll have never made much of a net contribution in your life.

The bottom three quintiles are all net receivers.

Keep_pedalling

arthurx1234 said:

....

Are we allowed to post family pics on here?

John464

Sailtheworld said:

have the last laugh when the council place you in a place that smells of cabbage that's been boiled in p**s for a week.

..... as do some of the obnoxious residents you can't get away from because there is no privacy