What's this scheme called please

The point being that if house is jointly owned the whole amount is considered to be used for self funding , down to the threshold, which I believe is currently £23,000

Not what we were told by our solicitor or Age UK Lathyrus.....

Lathyrus

Germanshepherdsmum

If you make a will leaving your house to someone else on condition that your spouse can continue to live there, the will only comes into operation when you die and therefore no longer require care. In the meantime you continue to own it. If before you die you need care, the house will be included in your assets for the purpose of assessing care fees. The terms of the will are irrelevant. The spouse won’t be turned out but the local authority will place a charge on the house to recover unpaid fees (plus interest) when the spouse leaves. The person to whom the house was left in the will won’t get it unless they can pay off the care fees debt.

The LA won’t place a charge on the house while the spouse or legal partner still lives there

From the Government website.

Deferred Payments Section 2:4

“Providing your partner lives in your home as their main or only residence the local authority should exclude the value of your home when it assess your finances.
This means that you should not face having to sell your home to pay for care and *will not need a deferred payment agreement.” (my bold)

So there’s no charge on the house while one partner is still living there, not even as a debt to be paid later.

Not arguing with you GSM, but I think it’s important to get it from the horses mouth as it were

I’ll just repost it.

And then I think I’ll give up?

Bucks

My interpretation is if you are tenants in common care fees can only be taken up to the percentage agreed on the tenancy. If you are joint tenants then ALL the fees come due after the 2nd death because you both own all of the house. No money needs to be repaid until the 2nd death. The house cannot be sold with a ‘sitting’ tenant. This is ideal for 2nd or 3rd or more marriages.

No! You’re totally wrong. Please read the.actual regulations on the Government website.

Why don’t people look for facts

My interpretation is if you are tenants in common care fees can only be taken up to the percentage agreed on the tenancy. If you are joint tenants then ALL the fees come due after the 2nd death because you both own all of the house. No money needs to be repaid until the 2nd death. The house cannot be sold with a ‘sitting’ tenant. This is ideal for 2nd or 3rd or more marriages.

Nanna58

We are tenants in common to protect my half of our house . My DH has Alzheimer’s and will most likely need care. If all our house was taken into account then what would happen if I need care later ( Dementia rife in my family) , where would some funds to help me come from. My mother is in care , and my sister and I are willingly spending her flat sale money on her care, but she is a widow. It’s very different trying to do the best to safeguard enough fund for a couple.

If you were joint tenants none of the value of the house would be taken into account, as long as you continued to live there.

I posted the rules from the Government website upthread.

A friend said to me “ Better to give with a warm hand than one which is cold” I was talking about helping my 3 children while I am alive rather than wait until after death. I do not have the problem of going into a care home thankfully.

Germanshepherdsmum

Apologies for the number of children Barmey but your post was difficult to understand there.

MPs don’t have huge salaries, far less than I earned, and they need a home in their constituency as well as a place convenient for Westminster so I don’t object to the reasonable (and we all know some take the p*ss there) costs of having to buy, equip and maintain a second home being paid by the taxpayer. If that didn’t happen there would be a great many more absentee and/or extremely wealthy MPs. I would be pleased to see the end of heavily subsidised meals though.

I’m sorry your children earn low wages (their choice of career), but it doesn’t mean that anyone else should pay for your care, so that they could buy houses, should you ever find that you can’t carry out your plan (as you will have seen, mine simply involves different drugs).

I have read all the posts here until I read that Germansheperdsmum ( love that name because it shows a love of dogs) I was curious because GSM said she earned more than an MP! As I worked in public sector jobs all my working life I never earned more than that and in fact if you add their allowances, cheap meals and being able to sell their homes that we paid for at a handsome profit then you must have earned a goodly sum GSM. It really is none of my business to ask but what job did you do? The only benefit husband and I ever received was attendance allowance for 3 weeks before he died. The helpful lady at the GP’s office wrote to me about it as I never knew about it. So be a sport and tell us about your work GSM as I am truly curious. All the other stuff in the thread is just a matter of opinion.

We are tenants in common to protect my half of our house . My DH has Alzheimer’s and will most likely need care. If all our house was taken into account then what would happen if I need care later ( Dementia rife in my family) , where would some funds to help me come from. My mother is in care , and my sister and I are willingly spending her flat sale money on her care, but she is a widow. It’s very different trying to do the best to safeguard enough fund for a couple.

If anyone is seeking advice about house ownership, protecting assets, paying for care from us motley crew, you are going to get a soup of probably unreliable answers and a few nuggets of facts - and a headache separating the two. Professional advice - and research on the web - is the only way - may be a bit more expensive or research resource intensive…

People become tenants in common for many reasons or a combination of reasons so stop judging.

And be aware that Local Authorities are legally powerful and are protecting the cost to their council tax payers.

People who can pay should.

Grandnagrotbags, yes you are part right. If you are tenants in common with someone the money will only be taken out of your 50% share.

I'm long term divorced and thinking about jointly buying a house to share with soon to be divorced adult child. I will need to upsize to accomodate both my child and 50% of the time young grandchildren. I've always intended leaving my home to my child and grandkids. It hadn't occurred to me that this could be seen as possibly hiding assets. It's only something I'm thinking of as a solution to a housing problem, not to hide anything. Does anyone know if this is OK?

www.gov.uk/guidance/register-a-trust-as-a-trustee

There are no exemptions for Wills , Trusts etc. Any care package that’s owing after the last person dies will be taken out of the property at Probate

Katie speak to a solicitor. Under Scottish law a trust has to be in place for 6 months. But council can go back 7 years if they think the trust was set up to avoid paying for care. Hope that helps.

You work all your days to leave a legacy to your family. Care should be free. Its paid in taxes all the years you work.

ruthiek

Tbh I think you should look after yourself , have seen too many people
Lose their home which they have scrimped abd saved for and been next door in a home to someone who has saved nothing for their old age - not because they can’t because they wouldn’t !

If you are not living in your home any more why should you want to keep it?

There are moral issues in paying for care and it depends where you start from. Those who pay for care are usually cross-subsidizing those who are funded by Councils because Councils won't pay the full rate and thus care homes charge private payers more to balance their accounts. Those who are being Council-funded may have never had the money available through lack of income in their working lives, some will have simply spent their income and have no savings and others through living longer will have paid their way until their money ran out and the Council had to pay. In some cases Councils insist the person moves to a less-expensive room or even another, cheaper home, all this at all advanced age. And of course some people resent paying as they want to leave money to help their children or grandchildren. My opinion is that everyone should receive free care when they need it just like the NHS. Those who have earned more in their working lives have usually paid more tax. Why should they have to pay again for care?

Tbh I think you should look after yourself , have seen too many people
Lose their home which they have scrimped abd saved for and been next door in a home to someone who has saved nothing for their old age - not because they can’t because they wouldn’t !

Grannyseaside, that’s what we did and they were excelllent.

you mean Tenants in Common - Joint owners means you both own the property and upon the death of one the ownership passes to the other

Lathyrus

You can give as much as you want from income and it will not be subject to Inheritance Tax.

You can give up to £3000 a year in total from savings and this will not be counted in Inheritance Tax. (That not 3000 to one person, 3000 to another, it’s the total)

You can give as much of your savings as you want but then the seven year Inheritance Tax applies. Full amount given subject to Tax in the first year, less in the second year and so on.

But Inheritance Tax is something quite separate to deprivation of assets. Inheritance Tax happens after the person dies. Deprivation of Assets is when money is given away to avoid paying for care or taxes.

You can also backdate that £3k for one year, so a £6k gift allowance per person.

volver

I'm Spartacus ?

As for having care at home and paying for it? Good luck with that. I speak from experience.

I am about to move 120 miles from my husband into rented accommodation, because even if you pay for it, there is no care to be had at home for my DF. So I have to do it. This is not how I had planned for my sixties to be.

What a country.

I'm really sorry to hear that Volver. Many best wishes for your future..X

Hi! I’ve just seen your question. I would recommend that you see a good solicitor who specialises in Trusts and Estates and also check they are a member of Solicitors for the Elderly. They can recommend what options you might have.

It will never change