Elderly Client Advice
Down To Earth Advice...
...For Private Clients
Care Home Fees and Your House
Liability to pay residential care fees is something that concerns many elderly home owners who fear that their home will be sold to pay fees if they have to go into a care home.
Some transfer ownership of a share or all of their home to their children believing that it will put the house beyond the reach of the Local Authority. Usually this is not a good idea. There may be Capital Gains Tax to pay when the house is eventually sold which would not have been the case if the house had not been given. There may also be Inheritance Tax to pay on the death of the original owner. Furthermore, there is no guarantee that the Local Authority will accept the validity of the gift. They may decide that the house still belongs to the original owner whatever the names on the title deeds.
If you are concerned about the possibility of having to go into residential care you need expert advice as soon as possible and before you take any formal steps to transfer your house or give away other assets. We offer you practical and accurate legal advice on your particular circumstances. We can advise you how a Local Authority works out who pays what. If you would like more information please contact us
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