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The rules regarding care fees and asset transfers can vary depending on the jurisdiction and specific circumstances.
In England and Wales, inheritance tax laws do stipulate that if you give something, such as a property or large sum of money, in some circumstances the recipient will only be liable to pay inheritance tax on it if you die within 7 years of the gift date. This is not an absolute rule, and more importantly it does not apply to care fees assessments.
In general, giving your house to your children now can be a positive move in many ways, but may not automatically protect it from being considered for care fees after 7 years.
In England and Wales, a local authority may look back as far as they deem necessary when making an assessment for Care Fees. There is no timescale where a gift could not be brought back into the assessment
If it is decided during the assessment, no matter how long ago, that you transferred assets such as your house with a significant intention of avoiding care fees, local authorities may consider it a deliberate deprivation of assets.
If it is determined you have given away money or property deliberately and it was foreseeable that you would need care in the future, you may receive less local authority funding – or possibly none at all!
The regulations surrounding care fees and asset transfers can be complex, and they depend on an individual’s circumstances.
It is often the case that a bespoke solution to meet your specific circumstances solutions can validly safeguard assets from charges to residential care in later life, but there is no ‘one-size fits all’ solution.
We’ve Got Your Back.
Our care fees team have specific expertise in this field and there really is nobody better able to assist you.
Our specialist lawyers are able to assess and plan for this eventuality, providing no-nonsense advice specific to your circumstances.
At Watson Ramsbottom we are able to offer advice in challenging the decisions made in respect of the contributions that need to be made by our clients.
Our care fees team has a history of successfully obtaining repayments of money paid by our clients incorrectly, both during the resident’s lifetime and after their death and such challenges are on the increase.
If you need assistance, more advice on the above or support with any other legal issue, We've Got Your Back
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