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Placing house in a trust

edited 16 May at 6:42AM in Benefits & Tax Credits
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Teacake1903Teacake1903 Forumite
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edited 16 May at 6:42AM in Benefits & Tax Credits
Not sure if this is in the right section but does anybody have any experience of placing their home into a trust so as to avoid future care home costs. It’s been recommended to me and I’m seeing somebody next week but would be interested in anybody’s observations.
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  • MarconMarcon Forumite
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    Wrong section, but no matter.

    'Some firms make a lot of money selling schemes to “protect” homes. They cannot work because once you have had that thought of taking some action to get more public money, any scheme is scuppered, even if the home is put into a trust. Save your money. And remember if you, your spouse or partner, or a relative over 60 or severely disabled remains in the property, its value is ignored.'

    Source: https://money.radiotimes.com/retirement/hold-onto-your-house/
  • GeordieGeorgeGeordieGeorge Forumite
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    Not sure if this is in the right section but does anybody have any experience of placing their home into a trust so as to avoid future care home costs. It’s been recommended to me and I’m seeing somebody next week but would be interested in anybody’s observations.
    If the intention is to avoid care home costs then the schemes will not work. If you sell your house now and spend all of the money then that’ll be as good a way as any to cheat the state out of what you are supposed to pay.
  • MallyGirlMallyGirl Forumite, Board Guide
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    Google deprivation of assets 
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  • TVASTVAS Forumite
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    Macron is correct. Also the local authorities would suspect that you put your house in trust to avoid care costs and they will take the house anyway. In Spain children look after all their elderly parents so if your kids want your house they should look after you. 
  • MarconMarcon Forumite
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    TVAS said:
    Macron is correct. Also the local authorities would suspect that you put your house in trust to avoid care costs and they will take the house anyway. 
    And I'm afraid you are wrong. The local authority will not 'take the house anyway' - they will simply refuse to pay towards care costs.
  • sevenhillssevenhills Forumite
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    Just transfer the house over to relatives now, if you do it 7 years before your death, the local authority will not chase you for care costs.
    You can just transfer without a solicitor, but there are numerous things to consider.
    What happens if the person you transfer the house to dies or gets divorced.

  • sevenhillssevenhills Forumite
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    xylophone said:
    "Seven years" has nothing to do with "wilful deprivation of assets in order to obtain or increase a means tested benefit".

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

    The "seven year rule" relates to the length of time that has elapsed since a gift was made in order to have it qualify to be an exempt (from IHT) transfer.
    I think it's quite likely that the local authority will use similar guidelines to HMRC for inheritance tax. Meaning that the person was in good health when the assets were transferred and they cannot see 7 years into the future, that they will have care-home costs.


  • Teacake1903Teacake1903 Forumite
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    resk said:
    I honestly don't know why people are so obsessed with dodging care home fees.  I can't think of a situation where I'd ever want either of my parents to not use what assets they have to have a comfortable end to their lives, and I would hope that they would think the same way.  Isn't that what building wealth is for?  
    That’s one way of looking at but I then may not be able to leave anything for my children because I’m also building wealth for them 
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