Minimising Care Costs
You will probably have seen reports in the papers, magazines and on the TV of cases where the care costs of an elderly person have severely reduced the Estate left by them.
Do you know that if a person needs to go into care then all their assets and income ( apart from slightly less than £20,000) can be taken from their family to pay their care costs?
Many families, particularly those who bought their former local authority properties in the early 80’s are now finding themselves extremely vulnerable to a claim by the Local Authority for any Care Costs due by the parents who bought the property as an investment all those years ago. It seems to be the case that parents who paid for the property in the early 80’s are now being asked to use any profit in the increase in the valuation of the property over time to subsidise their Care Costs for the future. This seems to be asking people to pay twice for the same thing which is clearly unfair. Unfortunately owing to the fact that Local Government funding from Central Government has decreased significantly, Local Authorities have no alternative to look for other ways to pay for those costs for which they have a statutory obligation to provide. However to take such a sizeable share of the value of the family home seems to be wholly unequitable.
With a little Estate planning, however, it may be possible to minimise exposure to such claims. Timing is extremely important and the sooner action is taken the more likely it is to provide a solid shield against future claims.
For a free interview or a free brochure giving more details, please call freephone: 0800 169 4046