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care home fees and devaluing an estate

Looking to know if investing in a company would be seen as devaluing an estate to avoid care fees

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Hi,

I'm wondering if someone elderly decides to use the majority of their estate (sell their home) to invest in a third parties company who they trust, will this be seen as deliberately depreciating their estate even if they have no link to the company?

I'm trying to work out if there is any last minute tax planning i can undertake for the person in question so their estate doesnt get bled dry by a care home. I know the local authority does provide funding but only if the estate is shrunk to a small amount (23k or so), but if they beleive it's been deliberately depriciated they will refuse funding. 

I don't think the person has 7 years left before health care becomes an issue so a trust or transfering the property might not work. 

Really appreciate any help. 

 

Replies (8)

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By Paul Crowley
21st Nov 2020 15:47

That plan is deliberate evasion of a known future liability.
First question on the financial appraisal is 'was there a house owned and what happened to it'
We both know that company will somehow go broke.

Pay the fee and talk to a solicitor

This is not tax planning, is is fraud planning

Thanks (2)
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By Paul Crowley
21st Nov 2020 15:45

Jcwangel wrote:

Hi,

I'm wondering if someone elderly decides to use the majority of their estate (sell their home) to invest in a third parties company who they trust, will this be seen as deliberately depreciating their estate even if they have no link to the company?

I'm trying to work out if there is any last minute tax planning i can undertake for the person in question so their estate doesnt get bled dry by a care home. I know the local authority does provide funding but only if the estate is shrunk to a small amount (23k or so), but if they beleive it's been deliberately depriciated they will refuse funding. 

I don't think the person has 7 years left before health care becomes an issue so a trust or transfering the property might not work. 

Really appreciate any help. 

 

Thanks (0)
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By Paul Crowley
21st Nov 2020 15:58

@ Wanderer
Think this is genuine. Could not find as a prior question

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By WhichTyler
21st Nov 2020 19:40

The shares in the company will still count as the person's assets won't they? And could be sold to pay the care home fees?

Why don't people want to pay their accommodation and other costs when they can't live in their own home any more?

Thanks (2)
Psycho
By Wilson Philips
21st Nov 2020 19:51

Let me get this straight. Individual has asset worth £x. Individual is going to sell said asset and invest in shares in a company that are, or will become, worthless. Yep, that makes perfect commercial sense.

Thanks (1)
ALISK
By atleastisoundknowledgable...
21st Nov 2020 22:20

It’s not your aunt is it?

Thanks (1)
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By paul.benny
22nd Nov 2020 09:30

If the elderly person anticipates moving into a care home in the future, but sells their home now, where will they live in the meantime?

Why would anyone choose to invest the majority of their wealth in a single company? What independent advice will they receive and how will their interests be protected?

Thanks (2)
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By Youareatit
22nd Nov 2020 10:28

Asked by Jcwangel
Builder Hdr contractors

Maybe change your name to williwangle

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