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Do Will Trusts to avoid care home fees work?

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Receiving a lot of brochures at the moment from various financials about setting up a Will Trust to avoid Care Home fees.The proposal being that the Survivor enjoys the income from the Trust without owning the underlying asset ; the Regulatory Authority is then unable to force a liquidation of those assets.Do these work ?My understanding was that the Council would ignore the trust and insist on a full contribution towards Care Home costs.

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By OldParkAcct
13th Apr 2021 18:44

Never really understood why people are so interested in these, in most circumstances they don’t work.
If you experience 1st hand the type of care provided with council funding, you would be happy to pay for your parent’s care rather than depriving them of the funds they need for a comfortable retirement.

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By lesley.barnes
14th Apr 2021 09:17

I think the clue is that some of the sellers of these schemes have the caveat in their leaflets that their "effectiveness can't be guaranteed". Local authorities can challenge them on the grounds of deliberate deprivation if they can prove that avoiding care home fees was the reason for doing it. This allows them to seek the costs from the person the funds have been transferred to.

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By Cleggy1
14th Apr 2021 12:32

But never has one council in the UK once challenged these schemes, so unfortunately they do work because of the lack of action by every local authority in England.

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By More unearned luck
14th Apr 2021 16:51

There are motives other than tax and care home fee contribution avoidance for creating IPDI trusts. It would be difficult, I suppose for LAs to distinguish proper motive from improper, let alone prove, that the trust was created for an improver reason (if that is where the burden lies). There is also the problem from the LA's point of view that the settlor isn't the one doing the avoiding. He or she could have been dead many years before any avoidance begins. In many cases when the will is made the prospect that the survivor would need to go into care would be remote.

LAs might have a case if at the time the will was made, it was clear that the surviving spouse would have to go into care sooner than later.

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