Best Financial Advisors in Omagh

Can I gift assets to avoid paying care home fees? Arranging social care in later life can burn through money. The cost of residential care now stands at just over £46,000 per year – and that’s without nursing costs. In cities such as London and Brighton, the annual figure is over £50,000. In the UK, anyone who has assets above a certain level and doesn’t qualify for NHS support will usually have to pay for some or all of the care themselves. Different thresholds apply for funding care at home. Many people are under the impression that, if you can reduce the amount of your assets by giving away money, property or income, the state will step in and pick up more of the bill. Gifting money to reduce your overall estate is a common part of legacy planning – and in theory it could help you qualify for state-funded care in later life. But beware! There are very strict guidelines on giving away property and assets. A financial adviser can help you understand what these are and help make sure that you don’t fall foul of the ‘Deprivation of Assets’ rule. The Deprivation of Assets rule says that if you reduce your assets so they won’t be included in your needs assessment, you may be intentionally trying to avoid self-funding your social care. The key word is ‘intentionally’. If your local council decides you have deliberately reduced your assets to avoid paying care home fees, they may calculate your fees as if you still owned the assets. It will be as if you had never given them away.