Care Costs
70,000 homes a year sold by Local Authorities to pay Care Fees
1 in 3 Women and 1 in 4 Men over 65 go into Care
Your Local Council can take everything over £14,000 EVEN YOUR HOME!
Community Care -
Is the most vicious tax of all
Warning: do not delay - advance planning is safer and much cheaper- Doing Nothing will disinherit your children by default.
Whilst Inheritance Tax (IHT) reduces the passing of wealth through the generations by taxing it at a 'modest' 40%, the need for a family member to have Long Term Care can be a 100% tax on your wealth.
Under the Charges for Residential Accommodation Guide (CRAG) Regulations:
If your assets exceed £23,000 and you need residential nursing care, the Government will contribute between nothing and around £100 a week to the costs you incur, which could be at least £500 a week or even double this figure.
YOU must find the rest. Once your assets drop below £23,000 (20010) you will receive a slightly higher contribution, until your assets are below £14,000 (2010) when the whole cost (up to a maximum set by your local Council) will generally be met by the Council. However, they are under a legal duty to recover as much as possible of the costs from your estate, and may well pursue people you have given significant gifts to and they will also sell your home (if you own it) unless it is still occupied by an acceptable dependent. Rates vary across the country.
To Avoid Care Costs You must
ACT EARLY
WHAT CAN YOU DO?
- Do Nothing and Hope for the Best -No
- Transfer to Your Family -No
- Protect your assets in a Trust -YES
Many people do things which stand no chance of working, such as giving their home to their children hoping to avoid community care fees. This is classed as deliberate deprivation and the children can be forced to sell the property to pay the cost of care, or they may become divorsed resulting in the property being sold to pay a settlement and thereby the parent losing there home.
None of this saving is possible if you leave it too late, or if you already have an illness which can reasonably be expected to mean you will need residential care in future.