Protecting my house

Murphybear

Reading this thread and lots of others I get the impression that people think that most people go into care.

The truth is just the opposite.  According to official statistics only 4% of people go into care or, to put another way, 96% of people won’t.  So unless you have been diagnosed with early onset Alzheimer’s you really don’t need to worry.

Billy_B_North

coffeehound said:

While certain regions of Britain benefit from free care in old age while others don't, it seems unfair to berate the OP for wanting the same.  Welcome to the UK, folks.

Certain people can afford champagne while others can’t, that doesn’t make it acceptable to shop lift.

If you want to benefit from care that the state pays for then moving is an option. Trying to cheat isn’t.

Mojisola

Tony1463 said:

Can anyone tell me the best way to protect my home,what I mean is if we have to go into care .
At the moment my wife and I live in our home which is paid for ,we are worried about if we ever have 
to go into care and made to sell our home .
we have 2 daughters who have there own home .

Well, you can pay to have the change made but your daughters will be liable for CGT when they sell the house.  Unless you've got over a million, they wouldn't have to pay IHT if they inherited the house from you.

If you do change the ownership of the house and either of your daughters divorced or got into debt, their share of your home will be counted as one of their assets and may have to be sold.  Where would you live then?

If either of them became dependent on means tested benefit, for instance because of a long term health problem, they wouldn't be able to claim means tested benefits

And, as others have said, the council would see it as deprivation of assets and refuse to fund any care you needed.

Nebulous2

GaleSF63 said:

davidmcn said:

coffeehound said:

While certain regions of Britain benefit from free care in old age while others don't, it seems unfair to berate the OP for wanting the same.  Welcome to the UK, folks.

In Scotland it's only the personal care element which is free - accommodation etc is still means-tested as elsewhere, which in practice I think is the major cost anyway.

And it's not easy to get. 

I think you've misunderstood - everyone gets it. That includes care at home visits for people in their own homes. 

AdrianC

Murphybear said:

Reading this thread and lots of others I get the impression that people think that most people go into care.

The truth is just the opposite.  According to official statistics only 4% of people go into care or, to put another way, 96% of people won’t.  So unless you have been diagnosed with early onset Alzheimer’s you really don’t need to worry.

Which is lovely until that 1-in-25 (and falling) goes the wrong way for you, and you suddenly find that the LA have indeed rumbled you and now you need to beg to family to cover your costs.

Nebulous2

Murphybear said:

Reading this thread and lots of others I get the impression that people think that most people go into care.

The truth is just the opposite.  According to official statistics only 4% of people go into care or, to put another way, 96% of people won’t.  So unless you have been diagnosed with early onset Alzheimer’s you really don’t need to worry.

Unfortunately you are way off with your figures. Something like 4% of over 65 year olds are in a care home at any one time.  It is more like a third of people who need a care home. However that is still a minority, with most people avoiding one. 

GaleSF63

Nebulous2 said:

GaleSF63 said:

davidmcn said:

coffeehound said:

While certain regions of Britain benefit from free care in old age while others don't, it seems unfair to berate the OP for wanting the same.  Welcome to the UK, folks.

In Scotland it's only the personal care element which is free - accommodation etc is still means-tested as elsewhere, which in practice I think is the major cost anyway.

And it's not easy to get. 

I think you've misunderstood - everyone gets it. That includes care at home visits for people in their own homes. 

If the local authority who pay it assesses someone as eligible. 

GDB2222

Murphybear said:

Reading this thread and lots of others I get the impression that people think that most people go into care.

The truth is just the opposite.  According to official statistics only 4% of people go into care or, to put another way, 96% of people won’t.  So unless you have been diagnosed with early onset Alzheimer’s you really don’t need to worry.

Are you sure about those official statistics? 
4% of the over-65 population are in a care home at any given time. But, that's not at all the same as your chance of going into a care home towards the end of your life. Roughly 1 in 3 of us will do so. 

Marvel1

Who is going to pay for your care? How will you fund it?

GDB2222

xylophone said:

If only one of you needs care, regardless of whether you own your home as joint tenants or tenants in common, it will not be taken into account in any means test.

Regardless of how you own your home, if both need care then it will be taken into account in any means test.

If you give away your home with intent to obtain or increase a means tested benefit, "Deprivation of Assets" considerations come into play.

https://www.carehome.co.uk/advice/deprivation-of-assets-to-avoid-paying-for-care-home-fees

if you own your home as tenants in common, you may each make a will that  creates an Immediate Interest in Possession Trust in your share for the surviving spouse while leaving the beneficial interest  in the share to your daughters.

Thus if one of you dies (in or out of care) while the other is still occupying the property, if the survivor also has to go into care, only the half owned by that survivor can be taken into account in the means test.

Explanation here.

https://www.marlowwills.co.uk/life-interest-in-possession-trusts.aspx

The IPDI with your offspring as "remaindermen" also protects the transferable "Residence Nil Rate Band"  (IHT).

https://techzone.adviserzone.com/anon/public/iht-est-plan/Tech-guide-iht-on-death

You would take professional advice from a solicitor with expertise in wills and trusts.
https://content.step.org/step-directory

I agree.  That is a practical, and reasonably tax-efficient, route to take that protects half the house value. Essentially, you split the house between husband and wife. When husband dies first, his half goes to the daughters, and wife continues living there. When she, later, needs care home fees only her half of the house is at risk.

There are a host of practical reasons for steering away from what are known as asset protection trusts. These purport to protect the whole house value, but are not effective and cause tax complications.

There's some further helpful information here:
https://www.aprilking.co.uk/making-a-will/steer-clear-of-asset-protection-trusts/

Incidentally, there are all sorts of good reasons for paying for the care, BUT THAT'S NOT WHAT THE OP ASKED.