BE WARNED
There has been quite a bit of interest recently in the press with regard to setting up a Family Protection Trust. One article in a popular Sunday paper was in the form of a letter from a lady to the editor and it stated that she had enquired about setting up a Family Protection Trust.Apparently, she stated, that if this was done at least 6 months before going into a Care Home that all assets would be safeguarded, including her home and any cash which had been transferred into the trust.The cost was estimated to be around £3,000 which it was felt was reasonable because it would prevent the family losing a large part of her estate.The answer stated that this was rather simplistic because the 6 months mentioned is just the period within which assets can be recovered by the local authority if financial help is requested to pay for the residential care.
The actual legislation states that,

"if property is given away as a gift immediately prior to a person entering a residential care home, the local authority may decide that the person has deliberately disposed of capital to avoid paying for care and the person may be assessed as though they still had the capital."

(National Assistance Assessment of Resources) Regulations 1992, Regulation 25.

Six Months would seem fair to me but the words "immediately prior" have to my certain knowledge been interpreted to extend to a massive 11 years in one case at least.

South Lanarkshire Council were demanding £600 per month from the son of a care home resident despite the house in question having been transferred into the son's name eleven years prior to his mother (the widow of a soldier who had served five years in the 14th Army in Burma in World War 2.) requiring to go into residential care.
The South Lanarkshire Council threatened her son that if he failed to pay this £600 per month that they "Would terminate her care!"
That was actually the worst case that I was ever asked to deal with in my 4 years in Holyrood as an MSP.
A land fit for heroes to live in----- Don't make me laugh!
Who knows, when our Prime Minister, Gordon Brown, is standing at the Cenotaph on Remembrance Day, perhaps he will have a remorse of conscience and ensure that no war veteran's widow or son will ever again be pursued again in this manner by any over zealous local authority.

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Financing Retirement