Hypothetically speaking and in no way aiming to defraud a local authority but, theoretically speaking does anyone know how far back a council can view someone's bank statements with a view to assessing how much they would need to contribute to their social care? In other words, if a big chunk of money was transferred out of the account to bring the balance down, how could we hide it?! Catch my drift, wink wink and all that....
If your grans in a care home and you're power of attorney and she says, "here's key to my bungalow and this is my pin number don't let these ******** get it empty my account". Do it. If you do right thing all your life old age levels things. I haven't a pot to piss in but if you have 60k in bank when you lose your faculties you'll get same care as me and have to pay a grand a week for it. Extra if you actually want some care. If I ever get that bad I'll be on East Coast mainline somewhere between Hemsworth and Fitzwilliam.
My understanding is that, for inheritance tax purposes, you need to survive for 7 years after a gift and then it falls outside of the reach of the taxman. But for social care purposes, there is no time limit. They only need to prove that at the time of reducing your assets, you were aware that you would soon be needing social care. Found this link from Age Concern on the subject. https://www.ageuk.org.uk/globalasse..._deprivation_of_assets_in_social_care_fcs.pdf This is a pertinent paragraph.
If I make 54 I'm cashing my pension. Giving George all my money and living off an allowance plus my wage. That'll show em'.
Stephen Dawson - that first paragraph above of yours I'm afraid is atrocious advice to any Attorney on numerous levels. Gran needs to ask to be wheeled down to the tracks at Kinsley, with a nice distracting view of Vale Head Park.......
The Local Authority are looking at why any assets have disappeared, rather than when. There is no cut off point at which you are safe. So no cut off point for them looking at bank statements. In practice the council do not tend to be as vicious or eager as you might expect. If the person under assessment was claiming incapacity related benefits at the time the dosh disappears there'll be trouble. If at the time the dosh disappears the person was simply elderly without any particular obvious ailments, then you should be OK.
The only way to avoid care home fees is if someone is sectioned and placed on a section 3 of the MHA then aftercare is free
Only 5 % of estates are subject to Inheritance tax. My view and I appreciate that this is a very much a minority view is that Inheritance Tax is by far the easiest one to pay as you do not need much money on the other side.
I along with my sister and brother managed to get Continuing Health Care for my mother but there was still a "top up," to pay.
It depends on the council ,I dodged a bullet with Barnsley Council. There is a paper trail and some local authorities go down that route
I too thought it was 7 years but according to these there is no timescale.. https://www.ms-solicitors.co.uk/how-to-avoid-gifts-being-treated-as-a-deprivation-of-assets/
