Care Homes....

[john1066]

When an elderly person goes into a care home their house has to be sold to pay for the care. If their assets are lower than �8000, including their home, the care is funded by the government..I believe this to be true....I have been told that if the house has been left in trust for their decendants it cannot be taken for payment to the care home.
Is this the case ?

[bednobs]

surely you only leave something in trust when you die? therefore if the owner of the house is still alive ......
however do you mean in the example of say a husband dying and leaving his property in trust to the children, while his wife continues to live there and then has to go in a home?

[Buenchico]

It's the word 'left' in your post which is causing the confusion here, John. It implies that a trust is created by a will (as would automatically happen if property was left to minors); such trusts don't help with avoiding care home fees.

However the creation of a 'family trust' (while the property owner is still alive) can indeed assist with a person keeping their home.

Read these links, in order, for further relevant information:
http://www.direct.gov.uk/en/HealthAndWellBeing /HealthServices/CareHomes/DG_10031525

http://www.direct.gov.uk/en/HealthAndWellBeing /HealthServices/CareHomes/DG_10031523

http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/InheritanceTaxEstatesAndTrusts/DG_1001 0868

Chris

[Barmaid]

As Chris says, you can put the house into an inter vivos trust (a lifetime trust) so that you can remain living in it as long as you need and it can then go to family members.

HOWEVER, this is not guaranteed to work. If the asset is placed into trust when the potential for care is looming or it is a "substantial reason" for placing it in trust, the donor is deemed to still possess the capital and a charge will be placed against the property.

There is no time limit as to how far back the LA can go. Mind you, this has not actually been tested in court yet (but watch this space!!)

[john1066]

My mother-in -law is living in the house by herself now but may be going into a care home...In her will she has left the house to her children. Can the authorities take the house to pay for the care home

[john1066]

Thanks everyone (Chris) . You have given me the answer i was looking for..John.