The Care Act 2014 promised to overhaul the current social care system. It intended to make things better for people in need of care. One of it’s biggest aims was to change the point when people must pay for their care. Currently, anyone in need of care who has more than £23,250 in cash or assets must privately fund it. This threshold was set to rise in 2016. Financial constraints on the system meant that this change was delayed and has been put on hold until 2020.
Bearing in mind that property values are on the rise, £23,250 can easily be swallowed up by your house. This is before taking into account any savings in the bank. Although you may not feel you are in need of care at the moment or in the near future, it is worth putting a plan in place now to protect yourself in the long run.
If you know you want your property to go to your children after you die you may want to consider gifting your property outright now. The main benefit is that you are safe in the knowledge that your wishes will be carried out. Should you still wish to live in the property after it is gifted, a document can be drawn up to allow you to do this.
If you own a property jointly or you do not wish to gift your property outright, we can help you gift a specific share of it. Should you ever need care in the future, only your share of the property will be taken into account when assessing assets and capital owned. This will reduce the capital in the property and may affect on whether you need to pay for care.
The above options are worth considering in order to protect your assets but there are risks involved. We will advise you of the potential pitfalls of gifting assets and help you to successfully plan for your future.
Our experienced team of solicitors can advise you on the best ways to protect your assets. Call us now on 0175 321 6399.