care cost protection scheme

[taylorcat]

Has anyone ever heard of this. It involves putting your house and assets into trust for your children. Once you have done this they cannot be "attacked" by the Council to pay for care costs.

It's too late for my Mum who is now in a care home but I was thinking of doing it with my own house, having nearly lost my Mum's house to care costs.

 

[jenniferpa]

Firstly - you'd obviously need to research something like this very carefully. I, personally, would not trust the word simply of someone selling such a scheme. Furthermore - I don't see how anyone could give any sort of guarantee. However, if they could, in effect I think you'd be putting all your assets in someone elses hands. Would you really wish to do this, even your own children? I have some personal experience of something similar in my husbands family - when it comes to money some people seem to lose any scruples, particularly when they are worked on by grasping in-laws. Another point to consider - you would, if it worked, be at the mercy of your LA - would what they provide be what you deserve. I do think that sometimes the assumption is made that having no savings means that the LA will provide the same facilities that would be available if your were paying yourself. I think that happens sometimes, but sometimes it doesn't.

 

[Clive]

HI Taylorcat

If each partner has half shares in the house it must help to have wills that put half the house into a Trust for the children on the first death, (rather than the entire estate pass to the survivor).

BUT as Jennifer points out; you lose some control AND when it’s your turn to go into a NH you may prefer to use your money to pay for a decent NH of your choice,(not any old home offered by the council).

It is a major problem that causes many sleepless nights. My grandma thought she was doing right to leave her house to her unmarried daughter having obtained a promise that the house would pass to youngest daughter (my mum) on aunties death.

Of course Social Services confiscated the house.

My concern is not the loss of the money. It was how to explain to mum, who was in the early stages of AD, that elder sister had not lied to her and spent mum’s half of grandma’s estate on high living.

My mum was upset for months believing her sister had not kept her promise. Because of AD there was no way of making her understand.

Clive