Landlords would be well advised to ensure all records regarding their properties are kept up to...
With the plight of the residents and staff of Southern Cross care homes making headlines, many of us have wondered whether we or our parents might need to move into a care home at some point, and who will pay.
Most home-owners worry that they will have to sell their home or assets that they would prefer to leave as an inheritance to loved ones.
Currently, the amount you pay towards care home fees, if anything, will partly depend on your local authority, who will make a financial assessment of your means. Before assessment, you should check that you are receiving all the benefits you are entitled to claim, since any contribution you may have to make is worked out as if you are receiving them.
If you become a permanent resident, the authority may include your house as capital after 12 weeks. However it will be excluded as capital whilst certain other people still live there so it is worth checking this.
If you want to retain your home because you believe you will be fit enough to return to it in due course, you can ask your local authority to make deferred payments.
Assuming you are not seeking to avoid inheritance tax, you can gift assets to your family including your home. Be warned however that if you subsequently need care, the local authority may assess such gifts as an attempt to deprive them of your assets and your ability to pay or to contribute towards your care.
If you are contemplating these options, it is best to see a solicitor because trust law is complex. At the same time, make sure that you have a valid will and that it is up to date.
Finally, for some people, the alternative may be to rent out your home and use the rent to pay your care home fees.
If possible, it is always best to take advice before it becomes an emergency situation, so if you are worried that these issues will affect you or a relative and would like specialist legal advice, contact Desmond Saunders on 01827 317075.
