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However, not only does this put you in a vulnerable position in respect of your own home and security, it could also be seen as an intentional deprivation of assets. The Care Act 2014 states that deprivation of assets is where a person has intentionally deprived or decreased their overall assets in order to reduce the amount they will be charged towards their care and support. The fact you have given it away might be ignored by the local authority.
By gifting your property to your beneficiaries now you may run the risk of losing the property in other ways. One of your intended beneficiaries might become bankrupt and their share of the property would be acquired by the Trustee in bankruptcy. Alternatively, one of your beneficiaries may go through a divorce and your property would be considered part of their matrimonial assets in their divorce.
So in essence, if you gift your property away – you have no control of what happens to it but you could still have it taken into account for Care Home Fees and Tax. This limits your own security and your options for the future. However, with our specialist advice, there may still be options open to you.
You could consider putting your property into a Trust or in the case of joint property dealing with your share of the property in your Will by way of a Trust. This provides an element of protection so that the home does not usually have to be sold to fund care home fees but this area of law is complex and should only be considered with a suitable expert. Franklins can assist in talking through your options with you to ensure that you have the information you need to plan for the future.
Not really. If you plan to do this then you need to seek expert advice.
There are various methods some more risky than others. On the whole funding is private so the local authoirty only pay when you are poorer. If you make yourself deliberately poorer then this may be investigated and set aside.
Yes if they have had assets transferred to them as deliberate deprivation of assets.
Care home funding is private so when you go into care you are expected to pay. If you ask the council to fujnd it for you then they will expect you to show you have less than £23,500 legitimately rather than artifciially because you offloaded your house to your children.
They are paid into your account as normal and paid towards care until your assets total less than £23,500.
If you have any questions about gifting property, please don’t hesitate to contact our team of experts who are on hand and ready to help you.
