What is Deliberate Deprivation of Assets?
Many commentators state that it is not possible to protect a property from being assessed by a Local Authority for care fees. This is fundamentally and completely untrue.
There are 1000s of people each year who avoid having to use their home to pay for their care because they had set up proper and legally binding Trust protection many years in advance of such care being needed and crucially, by ensuring that they do not contravene the rules on deliberate deprivation of assets.
Clear information can be found on our website regarding deliberate deprivation of assets here: https://thywill.es/deliberate-deprivation-of-assets
It is important that you are fully aware of the rules so that the whole subject can be demystified and the misinformation peddled online and in newspapers by many ne’er do wells is debunked once and for all so that you can make a clear and informed choice with all the accurate facts in front of you.
Protecting your home with a Trust and ensuring it is not used to pay for care fees IS possible, you just need to know the correct way to conduct the process:
Only specific property Trusts should be used not Asset Protection Trusts;
The Trust should cease the day before death to enable the Residence Nil Rate Band to be able to be claimed;
These Trusts will NEVER mitigate inheritance tax on the settlors’ estates and should not be considered to do so;
ONLY members of your family should be elected as Trustees, not the company selling the Trust to you;
Bespoke Trusts that have no ceiling on them should be used from 2001 onwards to ensure no 10 year anniversary, Entry or Exit charges will apply;
Crucially, for the Trust to be able to avoid care fees, the over-riding reason for setting it up must be for protecting beneficiaries against divorce, bankruptcy and losing benefits and of course ensuring that should a surviving spouse remarry that the property is guaranteed to go to the beneficiaries outlined and not the family of an as yet unknown future spouse of the survivor and these reasons should be clearly notated within the Trust document itself, so that your Trustees can, in the future, prove your original intentions should you be unable to speak for yourself.
For the facts and not the fiction – give us a call FREE on 0800 664 11 68