You never know what is around the corner and we always recommend you start planning your future sooner rather than later, especially when it comes to potential care fees and the family home!
If an individual needs social care there will usually be a care needs assessment and then a financial assessment. Where a financial assessment is carried out, at the moment if you have capital over £23,250, you are required to pay the full cost of residential care. (There is one exception where an individual is eligible for continuing healthcare, in this case the NHS must fund the cost of care and this is irrespective of means. However, this is a very stringent test.)
An individual can transfer a property into a trust during lifetime whereby they give themselves a right to live in the property for the rest of their life. A Local Authority may then disregard the family home when carrying out the financial assessment for care home fees.
We acted for clients in 2011 and we transferred the family home into trust during their lifetime.
Unfortunately the husband died and his wife had to go through a financial assessment to decide who would pay for care and support.
The Local Authority initially argued that the property should be taken into account as part of the financial assessment. However as the property was transferred into trust in 2011, the Local Authority agreed that the house would not be taken into account as part of the financial assessment.
If you would like to find out whether transferring a property into trust is likely to be of benefit to you, please contact our Wills & Probate team to discuss this further as this will depend on your individual circumstances. Our will and probate solicitors are based in Wakefield, Dewsbury, Horsforth and Selby and can be contacted on 0330 300 1103.