Care home fees advice
Case 1:
Some years ago we recall acting for a mother and her two daughters who came to see us regarding their mother's affairs and especially what would happen if her circumstances changed in the future and she couldn't managed at home and even if she had to go into care.
We advised them that it would be in their interests to set up a Trust whereby they could actually look after their mother's affairs whilst she was at home and if her position changed the Trust would continue and they could still look after their mother's affairs and at the same time they could preserve the house for their mother for the future.
A couple of years later we were again approached by the daughters to say that their mother's position had changed in that mum could no longer live at home and would have to go into long term nursing care. We were asked what was the position regarding the house. We reminded them that because the house was in trust and it was done at the right time for the right reasons that the Trust continues for the benefit of mum. Whilst the house could not be assessed by the Local Authority, they could at least use the house (by rental income) or sell the house and use the proceeds (income) towards Mum's keep.
The house was subsequently sold and they used the proceeds towards mum's support but that the proceeds of sale remained intact and the daughters thanked us because had we not given this advice, the house or its proceeds would have been spent.
Case 2:
Approximately 18 months ago we advised a couple to make Wills and advice was given to make a Life Interest Trust Will so that if one of the parties position changed or they had to go into residential care then at least half the Estate would be preserved against the assessment.
Subsequently the husband died and the wife had to go into long term care and because of the advice we gave at the time, half the estate was preserved for the family.
Subsequently the family contacted us to express their thanks for the advice and support given to their parents at the time.
Case 3:
Two years ago we acted on behalf of an elderly lady who had no assets, property, capital or income, but she had a son who unfortunately died of cancer. Because of his insurance and death benefit at work she received a substantial six figure sum. She came to see us about protecting that capital in the event that she had to go into a nursing home.
She told us, "This money isn't my money, I only received it because of my son's death and it would not be right for it to be taken in nursing home fees if it can be avoided". Subsequently we prepared a Trust for this client and again because it was done at the right time the capital was secured and will go to the charitable bequests that it is intended to go by reason of her son's premature demise by cancer.
