Background

Anecdotal evidence suggests that anything between 40 000 and 70 000 homes are sold each year to cover the owner's care fees.

Many elderly people are looking for ways of protecting their estate to pass it on to their children and to avoid it being decimated by care home fees.

Giving the home away to the children is sometimes seen as the solution, however this is not recommended.The risks are immense.

The Basic Position

Those who cannot afford to pay privately for care must look to the local authority for funding or assistance with funding. The resident has a free choice of home, subject only to the fee level quoted, which is usually within the funding arrangements available to the local authority.

Both income and capital resources are assessed.

Capital of £23 000 or more - no contribution made by the local authority

Capital below £14 000 - a full contribution will be made by the local authority

Capital between £14 000-£23 000 - a partial contribution is made by the local authority

These are the applicable limits in England

The Home

The starting position is that the home counts as capital for financial assessment purposes. The solution is to ensure that the home is not personally owned on entry into care.