Why Pay Nursing Home Fees When Your Neighbour Doesn’t?
This is the question that we are most regularly asked. Many are concerned to know how people can either avoid paying or at least reduce the amount of nursing home fees that they and their families will have to pay.
If you have over £23,000 (£22,500 in Scotland, £22,000 in Wales) in property and savings the likelihood is that you will have to pay your own fees if you go into a nursing home.
Many people, and particularly those who have worked hard to buy their own homes, are very worried that if they go into a nursing home then all that hard work may count for little and the inheritance that they hoped would go to their children may instead go to fund nursing home fees.
The Government have been warning of a £6 Billion funding shortfall for the care of the elderly. People are living longer but with that comes a greater number of people suffering from age related illnesses such as dementia and alzheimers. Few people would like to be a burden to their children but at the same time do not want to take the expensive route of going into long term care.
Gordon Brown has indicated that there will be a review of funding but there is no saying how long such a review may take and what the outcome will be.
People often say they want to give their house to their children. This is not a good idea. Your home is your security. While you can generally be confident that your children won’t force you out of your home it may not be them that you are dealing with. What if your children divorce or go bankrupt? Divorce is as common as ever and bankruptcies are on the increase. If your child divorces then their spouse may claim against your house. If they go bankrupt your home could go to pay the creditors. Your children may also be left with an unnecessary Capital Gains Tax bill.
A common myth is that if you give your house away seven years before going into a home that it cannot be taken into account. This is not true. The rule is that if you dispose of an asset (whether your house or money) at any time in order to avoid nursing home fees then that transaction can be set aside.
There are however options that can help you to lessen the possibility of paying fees and at the same time provide you with the security that you need to enjoy the rest of your lives.
For married couples the first thing to do is to make sure that your wills and the way that you own your home is as beneficial as possible. For single people or for those who want to go further then family trusts can be considered.
What is clear is that proper legal advice should be sought. The whole value of your home could be saved for less than the cost of a week in a nursing home.
We have special arrangements with firms of Solicitors who specialise in these areas of advice and have considerable experience and expertise in these matters.
Contact us for a Free Referral