The placeholder featured image.

Q: Although we are both fit and healthy now, my wife and I are worried that our home and savings might end up being used on care home fees in the future so that we won’t be able to leave our money to our children. We are in our early 60’s and have heard that we could transfer our house to our children now to prevent this, is it a good idea?

A: Whether or not you will have to contribute towards the cost of your care, should you need care in the future, will depend on your financial position at that time. Additionally, the Local Authority may well review the past gifts you have made and, if they decide you have intentionally deprived yourself of capital for the purpose of avoiding future care costs, they can include the assets anyway as “notional capital”. There are various things you should consider first.  There could be tax consequences to transferring assets to your children, and you should get advice from a solicitor and if necessary an accountant. There are also practical considerations.  If you do transfer assets to the children, and one of them is made bankrupt, the asset could be lost to the trustee in bankruptcy. If one of the children get divorced whilst owning your property, their former spouse may make a claim against it. If you are in a position to make gifts, there are alternative options, such as putting assets into  a trust, but you should take specialist advice.

Q: Are there any steps we can take to try and protect our assets from care home fees which don’t involve giving away all our assets now?

A: There are steps you can consider taking within your wills which have the potential to ring fence some of your assets for your family. If you jointly own your home with your partner, it is possible to leave your share of your house to your partner for their lifetime, but after their death, specify that it goes elsewhere. The benefit of this kind of will is twofold. Firstly, you retain control over the ultimate destination of your own assets, as opposed to your partner inheriting them and passing them on elsewhere. Secondly, this arrangement can reduce the chance of your assets being spent on your partner’s  care home fees, if they go into care after your death. If you are married or in a civil partnership this kind of arrangement still benefits from the spouse exemption from Inheritance Tax which applies to gifts between spouses/civil partners.

Testimonials

Read what our clients have to say...

View All

Excellent experience start to finish – always very responsive to any queries and the turnaround on the property I was buying was very quick, even in the busy time leading up to stamp duty deadline. Jenny was always very helpful and went above and beyond to close on a short timescale.

Ben Armitage

“Very approachable, practical solutions to problems, but most of all very responsive which I personally think is very important because if you need help, you need it quickly, or at least to know someone is looking at it for you”.

Joanne Rowe, Finance Director, Greater Manchester Chamber

“Always able to contact, very approachable, friendly and professional”

Nives Feely, JAM Recruitment

“I believe I have been able to establish a professional working relationship with everyone I have come into contact. Importantly, I sense the relationships which have been established give me the confidence that I can make contact with Davis Blank Furniss at any time and on any matter. I would also like to express my thanks to the very impressive “gatekeepers” who work in reception, not only for making me very welcome, but also for their professionalism”

Bill Pryke, CEO, Chartered Institution of Civil Engineering Surveyors

“Thank you for your efficient and friendly help throughout this process. We have had it easy but your approach has been part of that”.

Robert Amsbury (Conveyancing Client)

“I would like to take this opportunity to thank you personally for the ongoing support and assistance the firm has offered to our parents over the years. I hope also that we may be able to call on you if necessary in the future.”

Valerie Fisher (Probate Client)

“Jo always provides great service, understands our needs and delivers on her promises. Our needs are relatively simple but the complexity arises out of the volume of work and short time frames, Jo always delivers.”

Peter Fernandez, Corporate Director at Royal Bank of Scotland

“A big thank you to all who dealt with my wife’s claim… We would not hesitate to recommend Davis Blank Furniss to anyone that may be in a situation like we have been…”

Anon (Personal Injury client)

“Before putting my case in Kirsty (Morbey)’s capable hands I’ve met a couple of other solicitors. None of them listen to me as intently as Kirsty and showed me as much empathy and understanding as she did. Simultaneously she was able to look at my case from legal perspective, explain all the options and follow each of our meetings with written summary of the discussed matters (in timely manner). Her advice was invaluable and led me to successfully ending the case matter (hopeful for good). I’m forever grateful for he work and would definitely recommend her to anyone looking for reliable, knowledgeable and committed solicitor”.

Anon (Family client)
5 star service

Our Manchester office is rated 5 stars on Google