Posted: Friday, 4 January 2019 @ 13:43
According to a recent article in the Mail, more than 100 elderly a week are having properties seized to pay for care home fees Between 30,000-40,000 thought to lose homes this way every year.
The figures – gathered by the finance firm NFU Mutual – showed that over the past five years councils have taken legal action to secure a share in more than 3,000 older peoples’ homes each year. From 2009 to 2014 the 72 councils questioned put a charge on 15,174 homes.
Older people with assets of more than £23,250, must pay their own care bills. Many are forced to sell their homes to meet the costs, which are close to £600 a week for an average care home place.
Councils take out a legal charge on a property when an older person will not pay care bills, and the council has to cover the cost. Often the family has failed to sell the home. Some try to give their property to their children if they suspect they will need costly care. But they must still pay care bills for seven years after the gift is made. During this time, the council will put a charge on the property.
A charge is also taken out in the ‘deferred payment’ scheme, which allows the person to stay in their home. The charge ensures the council can seize and sell the property after the owner dies.
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The number of properties targeted annually rose by more than 10 per cent over the period – from 2,816 in 2009/10 to 3,109 in the financial year which ended in March.
Some people try to transfer assets out of their name to avoid paying for care fees but this poses a dilemma.
Transferring an asset out of one's name does not necessarily mean that it will not be taken into account in a means test. Both the local authority and the Pension Service can, when assessing a resident’s eligibility for assistance, look for evidence of deliberate, or intentional, deprivation of capital such as a property. Deliberate deprivation occurs when an individual transfers an asset out of his or her possession to put him or herself in a better position regarding the means test for care home accommodation (or to claim social security benefits).