Social Care Fees

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What are Social Care Fees?

The Government has at last declared its intentions regarding the payment of Social Care fees and the implications of the same to the public. The new system if approved will not take effect until 2015 at the earliest and involves borrowing money from local authorities to fund care. The loan is paid back on the passing of the person/s from the deceased`s estate. In essence, homes will not be sold whilst clients are in care, they will be sold after they pass away instead and the loan will be settled.

What has changed?

Absolutely nothing! The fact remains that whatever happens the person`s home will be sold to fund their care and ultimately, children will lose some if not all of their inheritance from this asset.

The answer is still the same; a properly constructed Property Trust is the only way to preserve the inheritance, in essence, placing the property in trust effectively takes it out of the person`s ownership and as such when they pass away it does not belong to them it belongs to the Trust which is in the care of the Trustees (usually the children), it therefore cannot be sold to repay a local authority loan.

Finally, the cap of £35k is only a proposal, however a figure of £60k has also been mooted. This is not too bad if your home is worth a lot of money particularly if you live in the home counties. Some would lose their entire home in the North East!



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Social Care Fees

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