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Article taken from “Who Pays 4 Care” Don’t make the same mistake.
Mrs. K gifted her home to her son 9 years ago and continued to reside at the property alone. She has recently moved into a care home, having been assessed as requiring “social care”. Her income and assets were assessed by the local authority, who included the value of the property she had gifted to her son in their calculations.
Mrs. K’s son was faced with the options of paying the balance of his mother’s care fees personally, after deducting her contributions from pension incomes, renting her home out, with the rental income going toward care costs, with him covering any shortfall or, selling up and using the full proceeds of sale to pay care costs.
Mrs. K had gifted the property to her son, because a friend had advised her after 7 years the gift would be exempt from use for care fees. When confronted with the local authority assessment, the son had used the same argument, without realising it proved Mrs. K’s intention to prevent the property being used for care costs.
Thousands of home owners follow the example of others [as Mrs. K had] believing the action taken by them must be right. It is only when those actions get tested, when care is required that families frequently discover they have made huge and often costly mistakes.