Protecting your home from care fees

Protecting your home from care fees

Protecting your home from care fees

Taking care of you…

If you require care at home then it can often be a stressful time. However, we are on hand to help you through what can be a challenging time. We have extensive experience in helping our clients when it comes to protecting their home and assets against inheritance tax liability or a liability to pay care fees.

The process of managing your assets and finances at such a time can be complex, but our expert team are able to provide advice and guidance no matter your circumstances. When it comes to inheritance tax liability or a liability to pay care fees there are two different rules which must be adhered to:

  1. If you live for less than three years after the date of the gift and give away your assets or dispose of them at an undervalue, the value of the assets will be added back to your estate for inheritance tax. However, if you live for at least seven years, then the value completely leaves your estate.  
  2. If social services determine that the reason you gave away your assets or disposed of them at undervalue was to avoid paying care fees, then the value of the assets will be added back to your estate in order to assess your liability to pay care fees no matter when the gift was made.

When it comes to giving away your home and assets there is always an element of risk, but we are on hand to talk you through all the risks and provide advice on how to set up a family trust if you do not wish to give away your assets.

Our team are committed to protecting your home and doing what is in your best interests. It is worth noting that your home cannot be taken into account during the first 12 weeks of care and some assets are exempt from care fees, such as investment bonds.   

To find out more and to discuss your specific requirements, contact us.

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Useful Links: Will Writing Service, Probate Solicitors, Challenging a Will, Power of Attorney, Court of Protection, Family Trust Fund and Inheritance Tax Planning Solicitors.