Plan to force elderly into equity release to pay for care at home

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Plan to force elderly into equity release to pay for care at home

This is a duplicate of the Blog Entry made on 7th November 2011 19:56.

Pensioners have been warned they may have to remortgage their homes to pay for personal care – even if they don’t go into a residential home. Under...

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[PriorityOne]

Re: Plan to force elderly into equity release to pay for care at home

It seems to pay in the long run to either stay on Benefits, rent or both. Either that or sign your home over to one of the kids before you grow too senile to care what happens to it....

Just where is the incentive to get on in life..... ?

[Riz]

Re: Plan to force elderly into equity release to pay for care at home

I know some people whose folks have transferred the ownership of their house over to their children under a trust to avoid this sort of thing.

I have doubts about how well that would stand up legally, but more people might try if things go in that direction.

[PriorityOne]

Re: Plan to force elderly into equity release to pay for care at home

I know some people whose folks have transferred the ownership of their house over to their children under a trust to avoid this sort of thing.

I have doubts about how well that would stand up legally, but more people might try if things go in that direction.

I would definitely consider it when the time draws near.... there's no way the Gov. would get their mitts on my home.

The system stinks.... and the stupid Gov. seem too thick to realise that they're driving people into not bothering to get on in life 'coz there's little point in the grand scheme of things.

[pompeyfaith]

Re: Plan to force elderly into equity release to pay for care at home

Our ex council house was rented by my mum but she did not want to leave as all here memories were there after living in it for 20 odd years so when I married her daughter we decided that we would buy it with her discount.

Now although we got a good deal as it only cost us £13,580 it did come at a cost to us as we said we would look after her until she passes away.

So all in all we where able to buy at a heavily reduced cost but also take on the caring role of our mum which is no bad thing really as she is a nice kind and gentle soul.

It has saved the government a whopping amount of cash through as no doubt if they put her in care the cost would be massive.

So this has worked out nicely all round.

Value of 4 bed house now is £196,500 and as mum is very poorly looks like we will be selling and downgrading in the not to distant future.

Regards

[garlok]

Re: Plan to force elderly into equity release to pay for care at home

Just going back to what you said Riz. It does stand up legally. Big brother and his solicitors did it for his then in laws some 20years ago now. Trust was set up for the three children as father in law had to go into home with Alzheimers.

When his wife died, big brother inherited her one third share of the trust.

regards
Garlok

[Riz]

Re: Plan to force elderly into equity release to pay for care at home

Just going back to what you said Riz. It does stand up legally. Big brother and his solicitors did it for his then in laws some 20years ago now. Trust was set up for the three children as father in law had to go into home with Alzheimers.

When his wife died, big brother inherited her one third share of the trust.

regards
Garlok

Handy to know.

It just seems such an obvious measure to take, that I figured there must be a catch or a way for the government to work around it.

[Handyman]

Re: Plan to force elderly into equity release to pay for care at home

My Sister and myself were lucky in that years ago when Mum bought her council house she put us on the deeds as 1/3 owners.

When Mum went into a home 2 years ago her 1/3 was taken into account as part of her assets.

The Government has had it's share but not as much as it would have if we had not set this up.

Now her savings are down to the minimum so she is 2/3 funded.
It has only taken the state (and the owners of the home) 2 years to evaporate nearly 50k away from her.

I won't even mention the 4k each the Revenue has had from Sis and myself in CGT. At least as Mums share was from her primary residence she avoided that.

Regards all, Handy

[pompeyfaith]

Re: Plan to force elderly into equity release to pay for care at home

When the 5yrs was up being the time mum had to live in the house we had her taken off the deeds as she wanted no part of the house only our guarantee that she could live here rent free.

And we all agreed it would be easier to sort that now than wait in case she lost her marbles so to say.

So in all tense and purpose she is a lodger all though a rent free one and we get pay back when we come to sell as that will be reward for caring for her for the past 20 yrs.

[CleverClogs (RIP)]

Re: Plan to force elderly into equity release to pay for care at home

When the 5yrs was up being the time mum had to live in the house we had her taken off the deeds as she wanted no part of the house only our guarantee that she could live here rent free.

And we all agreed it would be easier to sort that now than wait in case she lost her marbles so to say.

So in all tense and purpose she is a lodger all though a rent free one and we get pay back when we come to sell as that will be reward for caring for her for the past 20 yrs.

Before she croaks, I suggest you sue her for rent arrears - you may be able to offset your "losses" against CGT.

[helmsman]

Re: Plan to force elderly into equity release to pay for care at home

Before she croaks, I suggest you sue her for rent arrears - you may be able to offset your "losses" against CGT.

well CC you do make me smile when you post although I wonder what new viewers will think not knowing you as the rest of us do. But dont stop.

[CleverClogs (RIP)]

Re: Plan to force elderly into equity release to pay for care at home

well CC you do make me smile when you post although I wonder what new viewers will think not knowing you as the rest of us do. But dont stop.

You don't have to collect the arrears, nor do you have to evict mumsie - all you'd be trying to do would be create a "loss" which you could claim against tax. That's not cruel - it's just prudent.

When I die, my house will almost certainly have to be sold to pay the Inheritance Tax.

[helmsman]

Re: Plan to force elderly into equity release to pay for care at home

You don't have to collect the arrears, nor do you have to evict mumsie - all you'd be trying to do would be create a "loss" which you could claim against tax. That's not cruel - it's just prudent.

When I die, my house will almost certainly have to be sold to pay the Inheritance Tax.

Yes I knew what you meant, it was still funny though.

[garlok]

Re: Plan to force elderly into equity release to pay for care at home

Its a total disgrace and every politician, our self proclaimed betters who falsely claim the moral high ground should hang their heads in shame at all of this.

WE suddenly, at a time of false financial crisis, can find £40Billion to give to the IMF who "promise" not to give it away to eurozone malcontents and wasters. Where the hell did that come from, I thought we had been told we had nothing??? Perhaps this latest government scam provides the answer, steal as much as you can from the weak, elderly and vulnerable that you can get away with, brand them all with clever marketing as wasters and scroungers. Perhaps Lord Ashcroft and numerous football clubs should be made to pay their taxes first---- Yes???

The conspiracy theorists so reviled by everyone would say its part of a sinister plot. If you look around they seem to be more right than anyone else from the facts on the ground.

Garlok the Dissenter

[mgfboy]

Re: Plan to force elderly into equity release to pay for care at home

You don't have to collect the arrears, nor do you have to evict mumsie - all you'd be trying to do would be create a "loss" which you could claim against tax. That's not cruel - it's just prudent.

When I die, my house will almost certainly have to be sold to pay the Inheritance Tax.

Good as it sounds , I dont think it would work, as far as I know you can't offset income loses against capital gains.

Also you have to be careful on the trust thing as well, councils have been known to look though them and make a claim against the estate. It's all about timing and intent.