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As time goes by...
26/02/2009
The last few years have seen a steady increase in life expectancy throughout the UK and old age brings with it a range of problems and concerns.
Taking early advice from a specialist and planning ahead could save money and avoid stress that comes when problems are allowed to become crises. The Bolton News
RESIDENTIAL homes or private nursing homes are often the choice for people later in retirement and in recent years there has been a vast improvement, both in the facilities they offer and types available. Most of these homes aim to generate a happy, family atmosphere while retaining the privacy of the individual which is still so important. They also offer peace of mind for both the elderly person and their relatives, safe in the knowledge that there is proper care on hand when needed.
Some of the homes simply offer gracious living in pleasant surroundings with residential care and the companionship of other retired people. Others provide round-the-clock nursing facilities and expert medical attention tailored to the needs of the retired person.
Finance is often the major factor which makes people reluctant to contact private homes, but often the State is able to pay part or all of the fees, and staff at the homes can advise residents on their rights and the financial arrangements which can be made. Nursing homes in the independent sector are subject to stringent rules of conduct, including the provision of qualified nursing staff and appropriate facilities. Before choosing a care home for a relative, a family should always request a guided tour and ask questions about the facilities being offered.
Many elderly clients and their families are becoming concerned that properties may have to be sold in order to cover long-term care fees. People of retirement age are faced with the possibility of being unable to pass on the value of the family home. It is, however, possible by timely planning to give oneself the best possible chance of preserving the value of the home for the next generation. It must be emphasised that this area does not have the certainty of inheritance tax planning as no absolute guarantees can be given.
Long-term hospital beds for elderly people have been reduced over the past two decades, resulting in elderly people who can no longer live in their own homes not being able to rely upon free hospital care. Instead an assessment is made as to the type of care needed often being provided by the private sector in a nursing home or residential home. This care will have to be paid for and if your assets are over £22,500 you will have to pay the full cost.
In many circumstances the value of the family home will be taken into account, unless still occupied by someone other than a spouse, elderly carer or disabled relative. Many people pay fees from their savings but resent not being available to pass their estate on to their family. A common thought is to give the home away. There are, however, a number of matters to take into consideration with regard to gifts in general and gifts to individuals.
It may be that a gift to a discretionary trust rather than to a named individual is the safest course of action. There are risks of giving property to a named individual in that it is irrevocable, the death, divorce or bankruptcy of the recipient of the gift during the lifetime of the person who makes the gift (the donor) could be catastrophic.
In addition, if the donor and recipients fall out then this could put the security of occupation of the donor at risk. Another less significant consideration is a loss of Capital Gains Tax relief on any sale of the house. The discretionary trust regime has none of the above disadvantages and allows the donor to retain control even to the extent that the settlement can be unscrambled. A solicitor would be able to assist you in order to determine if you would be eligible.
KBL has a specialist team experienced in the legal issues which specifically affect elderly clients. We can advise on:
- Long Term Care Fees
- Powers of Attorney (LPA's)
- Court of Protection & Deputyship
- Equity Release Plans
- Trusts & Tax Planning
- Wills
- Probate
To find out how we may be able to help you and your family or for a free no obligation appointment please call Susan Hartley on 01204 527777.