Think twice before giving your home away!
31 October 2013 by Susanne Grimwade
Anyone with assets exceeding £23,250, including their home, in England (different rates apply in Scotland and Wales) is expected to meet the cost of their long term care in full. As a result an increasing number of elderly people are considering gifting their home to their children in a bid to avoid long term care fees.
Cash strapped councils are now employing inspectors to investigate the finances of care home residents in a bid to recover care fees. If the council uncover evidence to show a property has been transferred to a third party with the intention of deliberately avoiding long term care fees the council can use powers to reverse the transfer of ownership. The property would then be taken into account when assessing an individual’s financial contribution towards the cost of their care.