Long Term Care


With our population living longer than ever before, people are very worried about the issue of paying for Long Term Care. It is very easy to disregard this issue, believing that it will never happen to us. Unfortunately so many of us seem to know or have heard of people who have had to sell their home in order to pay for their care. However most don’t quite know why this happens or how they can avoid the same thing happening to themselves.

We all need to plan more carefully for our future, if we wish our beneficiaries to inherit what we feel is rightfully theirs. The sad fact is that you’ve worked hard for years to provide a valuable asset to pass on to your loved ones, but your home may be under real threat if you later require long-term residential or personal care.

The Community Care Act 1990 empowers Local Authorities with the responsibility of providing Long Term Care. However they will refuse to pay for many of the services they provide on a means tested basis if assets are above the current threshold of just £14,250. Families of this vulnerable sector are dis-inherited when everything their parents have ever worked for during a whole lifetime is wiped out in just a few years of long term care.

Individuals may be tempted to give assets away to overcome this. Such action is unlikely to be successful due to the deliberate deprivation rule, whereby gifted assets are still included for means test calculations regardless of how long ago they were given away.

Sadly, up to one in four women and one in six men will need formal care during their lifetime. There are more than 500,000 people living in residential care. With a growing population of elderly people the figure is rising. It is upsetting for widows and widowers, who together had worked so hard for the family home they intended to leave to their children, suddenly losing the family home to pay £20,000-£30,000 a year care costs.

But YOU can avoid this happening by organising your affairs effectively with THE PROTECTIVE PROPERTY TRUST WILL. This quite simply is designed to protect the value of the share of the deceased partner in the property, from being used to pay the care bills of the surviving partner if they require permanent residential care. It also allows the surviving partner all the benefits of occupation or to move to a different property and will prevent the deceased partner’s share in the property being inherited by a second husband or wife. Ultimately, it leaves your share of the home to pass to your loved ones in the fullness of time.

If you have no hesitation in having building insurance for your family home, then you owe it to yourself and your loved ones to also protect your home against the Community Care Act 1990.

Why don’t I place my home in my children’s names?

If a council unearths evidence that a property has been deliberately shielded from a care home means test, it can call on considerable legal firepower.

First, if it happened within six months of asking the council for funding, it can rely on the Health and Social Services and Social Security Adjudications Act 1983.

In this case, the local authority can recover any sums it has to pay towards the resident’s care costs from the person the home was transferred to.

If they find the property transfer took place more than six months before asking for care, a separate piece of law called the Assessment of Resources Regulations allows the council to refuse to fund the resident in the care home – often sparking a legal challenge.

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