Care Home Fees
- By Rory Patton
- •
- 16 May, 2017
- •
The pitfalls of transferring away your property
A question we regularly get from clients who are retired or approaching retirement age is whether they should give their house to a son or daughter to avoid losing it in the future if they have to go into care.
There is a commonly held misconception that provided you transfer away your home at least seven years before going into care, it is automatically ring fenced from the Trust or Local Authority however this is not the case. The seven year rule relates to inheritance tax in that any gift whether it be property or otherwise, it will fall outside of your estate for IHT purposes if you survive it by seven years.
There is no such time limit when it comes to care home fees and if the local authority can prove that you gave away your house for the purpose of avoiding the cost of care (otherwise knowns as a "deprivation of assets") then they can take that property into account when assessing your means. The more time that elapses between the gift and the requirement for care, the more difficult it will be for the Local Authority to prove that was your intention however they can look into any property transfer regardless of when it took place.
It is also important to bear in mind that by gifting away your home, you are losing control over it and whilst we would always recommend that a right of residence is registered, you are still relying on your son or daughter to insure and maintain the property nor can you sell or mortgage it without their consent. Rather than an outright gift, you may consider putting the property in a trust which is a legal device that allows someone else to hold an asset on your behalf without having full control of it e.g. you can stipulate that they may not sell the property.
Trusts however are not a guarantee of avoiding care home fees either and the same test applies as to whether you put the property in trust with the aim of putting yourself in a better position in a local authority assessment.
If you would like more information on the issues raised above, please contact us to arrange a free initial consultation
There is a commonly held misconception that provided you transfer away your home at least seven years before going into care, it is automatically ring fenced from the Trust or Local Authority however this is not the case. The seven year rule relates to inheritance tax in that any gift whether it be property or otherwise, it will fall outside of your estate for IHT purposes if you survive it by seven years.
There is no such time limit when it comes to care home fees and if the local authority can prove that you gave away your house for the purpose of avoiding the cost of care (otherwise knowns as a "deprivation of assets") then they can take that property into account when assessing your means. The more time that elapses between the gift and the requirement for care, the more difficult it will be for the Local Authority to prove that was your intention however they can look into any property transfer regardless of when it took place.
It is also important to bear in mind that by gifting away your home, you are losing control over it and whilst we would always recommend that a right of residence is registered, you are still relying on your son or daughter to insure and maintain the property nor can you sell or mortgage it without their consent. Rather than an outright gift, you may consider putting the property in a trust which is a legal device that allows someone else to hold an asset on your behalf without having full control of it e.g. you can stipulate that they may not sell the property.
Trusts however are not a guarantee of avoiding care home fees either and the same test applies as to whether you put the property in trust with the aim of putting yourself in a better position in a local authority assessment.
If you would like more information on the issues raised above, please contact us to arrange a free initial consultation
We are proud to be a main sponsor of this event which is aimed at raising funds for a strength and conditioning coach to work with all sections of the club next season.
If you would like to get involved, please contact us for sponsorship opportunities.
If you would like to get involved, please contact us for sponsorship opportunities.
This International Women's Day, we're shining a spotlight on the incredible women of our office who inspire us every day with their talent, passion, and dedication.
We were delighted to present a cheque this week to the Southern Area Hospice for donations raised through their 'Make a Will' Campaign in October.
Our office is now closed for the Christmas holidays and will re-open on Thursday 2nd December 2025 at 9.00am. Wishing all our clients a merry Christmas and happy New Year.
Our office is now closed for the Christmas holidays and will re-open on Thursday 2nd December 2025 at 9.00am. Wishing all our clients a merry Christmas and happy New Year.
The students had been working hard gathering clues over the last 4 weeks trying to solve a murder mystery before presenting their case to judges Rory Patton, solicitor and the school Principal Mrs McHugh. They showcased excellent research and problem solving skills. Well done to the winners and to all involved in a very well run and worthwhile project.
We had a fantastic time last Wednesday celebrating the marriage of our own Hannah McClure to James Boyd.
Congratulations Hannah and James from everyone at FG Patton!
We are delighted to be supporting Digg Deep For Kids
this Christmas as a registered drop off point for the local area.
They are most in need of gifts for
children aged 7– 18 years however gifts suitable for children of all ages are greatly appreciated. Gifts must be new and unwrapped. A list of suitable items can be found on the Cash For Kids section of their website - www.diggdeepforkids.com.
Please note that we cannot accept food or cash donations. If you wish to donate money, please visit Https://www.justgiving.com/crowdfunding/diggdeepforkids2023
Congratulations to our client Coleman Construction Ltd who won 'Affordable Development of the Year' for their Taughrane Hall development at the PropertyPal awards last Thursday night in the Titanic, Belfast.
It was great to see the hard work and dedication of the team being recognised and a great night was had by all those who attended.
It was great to see the hard work and dedication of the team being recognised and a great night was had by all those who attended.
I will be attending ‘Meet the Experts’ – a great event for business owners and entrepreneurs, where you have the chance to meet industry experts to discuss and brainstorm how to improve and grow your own business.
If you are interested in attending, sign up for free via Eventbrite:
https://www.eventbrite.co.uk/e/meet-the-experts-tickets-718396963657
Date and time: Tue, 14 Nov 2023 - 1pm – 5pm
Location: THE JUNCTION, 12 Beechvalley Way Dungannon BT70 1BS
#tourismni #mudc #midulster #northernireland #business #event #networking
We are excited to be part of Free Wills Month
, launching on Monday 2nd October.
Free Wills Month is your chance to get a free Will whilst choosing to support charity by leaving a gift in your Will.
Free Wills Month is your chance to get a free Will whilst choosing to support charity by leaving a gift in your Will.
Bookings will be available from 9am 2nd October 2023. For more information, visit bit.ly/FWMSol
We are delighted to be part of the player sponsorship group for the Dungannon Women's Rugby team again this coming season.
Women's rugby continues to go from strength to strength and the Women's team has been a fantastic addition to the club since it was formed.
We wish them all the best for the season ahead.
Women's rugby continues to go from strength to strength and the Women's team has been a fantastic addition to the club since it was formed.
We wish them all the best for the season ahead.
