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Posted in Case Study by Graham Alexander on April 14th, 2012

The Law on Care Fees

The Local Authority has to provide care for all individuals who have a need. They receive money from the government to meet these needs, whether they are at home or in a nursing or residential care home. However if you have over £23,500* in assets you have to pay for your own care fees in full, and this includes the family home.

When your assets have reduced to £23,500* the Local Authority will then partially contribute towards the cost of your care, until you have just £14,250* remaining.

Personal savings, investments and an estimated 70,000 homes a year are sold to pay for care fees – adding up to £ billions.

Lessons to be learnt

  • It pays to get the right advice. – it can cost dearly if you don’t.
  • Having a Trust does not restrict the care you receive.
  • The Trust is for the benefit of the parent until they die, and then for the benefit of the children and/or other relatives.

Mrs C had to go into care – all her money was lost to pay for the care provided.

The family then hoped the council would pay her care costs when her money ran out, but the council refused to pay and the house had to be sold. Mrs C was left with just £14,250 in assets.

Had Mrs C taken our advice we would have conducted a thorough review of her situation in advance of her ailing condition, To reduce probate fees we would have recommended our English Family Trust and could have placed her cash, assets and house into the Trust for the benefit of herself and her children.

This also would have saved the family £000’s in probate expenses, and in addition ensured a swift transition of her assets upon Mrs C’s death.

Had she gone into care, the house and cash would have been protected.

For the homeowner’s protection and peace of mind

The former owner of the home has a guaranteed right of occupation. The trustees, usually the children/trusted family member, cannot evict the former owner.

If desired, the trustees can sell the property and buy a new property, of the former owner’s choice.

If the property is sold, usually when the former owner is going into care, the proceeds of sale can be invested and the former owner will receive the income.

We promise to give you honest advice to ensure that your estate passes on in the best way that the law allows.

To find out if your home can be protected from being sold to pay for your care fees and how you can avoid probate fees – call us on 01924 864281.

*All figures correct at time of last web update.

For more information or to make an appointment with one of our specialist consultants, call us now on:

0800 0276832

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