Protecting savings 19 October 2022 at 3:40PM in Savings & investments 14 replies 882 views

Lauraemily1

Me and my mum recently saw a will adviser who spoke about the importance of power of attorney and putting assets like the house into trust this we were told would cost in the region of £2,500.He also spoke about her money savings and advised about putting in what I think he said was a CBI where the local authorities can't touch it if my mum was to go into care I've tried to find info on this but can't find any does anyone have any knowledge on this as unfortunately I have none and don't want to do something we are not sure about 

EssexHebridean

Was this "will advisor" also an independant financial advisor and a qualified solicitor?  if not, then I would find one of the first for inheritance tax & financial planning, and one of the second for writing the wills... 

eskbanker

Lauraemily1 said:

I've tried to find info on this but can't find any does anyone have any knowledge on this as unfortunately I have none and don't want to do something we are not sure about 

Google 'deprivation of assets' to find articles about what you're hoping to do and how it would be perceived by the authorities....

masonic

Make sure they have good professional liability insurance if they are advising you on loopholes related to care fees. It's a changing landscape and you are right to be cautious.

Albermarle

Power of Attorney is a completely different issue to trusts.

It is recommended for everyone to set up a Lasting Power of Attorney, if they have someone they can trust. If you wait until someone is already struggling with mental capacity, it can by then be too late to set one up, and the alternative route is very time consuming and more costly.

However regarding Trusts, I am no expert but from what I can see from various posts on this forum they often:
1) Do not actually in the end bring the intended result ( see posts above). 
2) Cause big complications for the people handling affairs after the person has died.
3) It seems  the only clear and obvious beneficiaries are the lawyers setting them up, and administering them.

Now of course in some cases they will be completely appropriate for a specific situation, but for  avoiding IHT or care home fees seems at best a grey area,

mebu60

I would also add that a DIY LPA costs £82. Takes a bit of time and a lot of printing! 

But if you feel able to take it on you will save on the costs. There is a lot of guidance built in the online process. You only pay when you are ready to submit so nothing lost cost-wise if you start then decide to pay someone else to do it. 

adindas

Lauraemily1 said:

Me and my mum recently saw a will adviser who spoke about the importance of power of attorney and putting assets like the house into trust this we were told would cost in the region of £2,500.He also spoke about her money savings and advised about putting in what I think he said was a CBI where the local authorities can't touch it if my mum was to go into care I've tried to find info on this but can't find any does anyone have any knowledge on this as unfortunately I have none and don't want to do something we are not sure about 

Well I have read a lot about deprivation of assets in this forum.
In the future when someone needs a care home, the average cost of care home in the UK  is £888 a week.

https://www.carehome.co.uk/advice/care-home-fees-and-costs-how-much-do-you-pay

How beautiful  it is to get free care home using the taxpayers money instead of using your own money that you could later be gifted to your children??

If it was doable, it is no brainier everyone rational would want to do that.

I also want to know that if there was authoritative sources, such as from the government that allow people to do this. Not from advisers whose main intention is to get the fee paid.

phillw

masonic said:

Make sure they have good professional liability insurance if they are advising you on loopholes related to care fees. It's a changing landscape and you are right to be cautious.

I'd ask for them to put all their advice in writing as well. If they refuse to put certain things in writing, it's because they don't want to get caught giving dodgy advice.
 

John464

mebu60 said:

I would also add that a DIY LPA costs £82. Takes a bit of time and a lot of printing! 

But if you feel able to take it on you will save on the costs. There is a lot of guidance built in the online process. You only pay when you are ready to submit so nothing lost cost-wise if you start then decide to pay someone else to do it. 

I get what you are saying because I resent paying expensive solicitors fees too.
But the thing that concerns me about this is that if the person gets dementia they can forget everything.
Including who you are - let alone the fact they gave you permission to handle their finances.
They might well say 'I never said he could do that!!!
(especially if someone has got to them?)
... and then what might some people be saying about you???
But if you have done it through a solicitor you at least have someone to back you up and cover yourself. 

John464

Lauraemily1 said:

.... the importance of power of attorney and putting assets like the house into trust.....the local authorities can't touch it if my mum was to go into care I've tried to find info on this but can't find any does anyone have any knowledge on this as unfortunately I have none and don't want to do something we are not sure about 

When people move home they generally sell the old one to pay for the new one.
So why do some people expect taxpayers like me to pay for the new one (care home) so they can keep the old one as well?
Do you want to bung your mum in a cheapo care home at my expense so you can inherit a property you have not earned?

Keep_pedalling

So do you want to risk having your mother end up in over my dead body grove so you can inherit more money, or for her health to deteriorate to a very low level before the LA finance committee will sign off on funding, which is what happened with my mother.

If, as is the case with the vast majority of people, she ends up never needing residential care you are likely to have an unnecessary CGT bill when the house is eventually sold.  The sole reason the advisor is proposing this is to earn a nice fat fee.