Care Act Set to Ruin Even More Legacies
Care fees can decimate any legacy that property owners hope to leave to their loved ones, likewise with any legacy they might have expected to receive from their own parents. The new “Care Act” is set to make things much worse. Some industry experts are suggesting that the window of opportunity to get things sorted may be as little as 9 months! 
The Care Act 2014 when it is implemented will make it even easier for Local Authorities to grab property …..or just a share of it!
Local authorities already have a wide range of powers and under the Deprivation of Assets Rule and can “claw-back” cash or property that has been given away. For example some authorities like the quick and easy method of bankrupting the individual and to claw-back the property under receivership law.
Currently the best legal methods of holding on to your equity involve changing how you own your property and how much share is in each spouses name. Even these legal means depend greatly on WHEN you made the changes. Left too close to the time of requiring care and all the local authority has to do is suspect it was for reasons of deprivation, the burden of proof lies with the home owner.
It looks likely that The Care Act will also allow local authorities to assess the person who receives the gift and hold them liable for the fees!. Likewise the Care Act may well do away with the position that a part share of property has no value. This has much logic when you consider that a part share could be worth many thousands of pounds.
The good news is that Care Act is not yet law and may not be fully implemented for a few years yet, but there exists is the very real possibility that any of it could be enforced retrospectively! The best guess of some industry experts is that home owners may have as little as 9 months to a year to take action to protect their equity.
I would strongly suggest that anyone with elderly home owning parents to find out NOW if they are serious about wanting to leave their home as a legacy. If they are, talk to me NOW and we can quickly assess what legal means, if any, would be appropriate for them. I would add the options on offer do include a unique trust arrangement that includes a money-back guarantee which can also reduce or even eliminate probate!
Like it or not the Care Act is coming, whether it affects your family is all a question of timing and acting.
Written by Gary Streeter
Definitely one NOT to ignore! No-on wants to give more money to the government than they have to!
Rebecca Smith
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