Can I really avoid paying Care Home Fees?

With increasing media attention being given to ‘HorrorStories’ about Inheritance Tax and nursing home fees, it is no wonder thatBrits are becoming increasingly concerned about losing the assets they haveworked hard for all their lives.

Transferring your property to your children, placing theproperty in trust or creating a ‘family trust’ can sometimes be helpful,however in the majority of cases it could land you with a large tax bill,usually capital gains tax. It is important to remember that you lose allcontrol over the property.  For example,you may transfer your property to a child only to find that they becomebankrupt or divorced, if this happens your home may be sold as part of thebankruptcy or divorce. 

The regulations regarding nursing home fees are verybroad.  If your intention is to avoidnursing home fees, the local authority has the power to ignore the transfer ortrust you have created.

Given the above and the fact the cost of setting up the unnecessarytrust can run into thousands of pounds, it is vital that you take advice from asolicitor or accountant before entering into these schemes.

Please be aware that solicitors cannot under strictregulations cold call you, only salesmen will. If in doubt you can check on theLaw Society’s website.

Please contact Jan, Donna or Katherine for further information.