As others have said there’s definitely a flip side to this. My great aunt worked as a nurse and paid her taxes for almost 50 years and owned a house on the Malone Road in Belfast (sought after area with very high house prices). When she was diagnosed with dementia my Mum and aunties looked after her at home until it got to a point where she needed 24/7 specialist care. Her home that was valued at over £1million was sold to fund her care in a care facility. She died having been in the care home for less than 4 weeks.The next level of insanity/scam I’ve encountered is a woman in her 30s being signed over her nan’s house as they don’t want it to be used for potential care costs in the futureApparently the paperwork is only £1,500 - I find it obscene that families are being allowed to pass wealth down like this then ask the underfunded state to pick up the bill?!!
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When I viewed my current house to rent it my landlord told me (after signing the lease of course) that he picked me because I work in tech and my salary goes up quite often. Which allows him to raise my rent knowing that it "wouldn't bother me". I was so shocked on the moment that I kept quiet. When I brought it up with my friends they said that their landlords did the same thing. Every year or two they'd raise their rent by 50-100€. And apparently it is quite common for landlords to do that for people working in tech in Ireland.
It pissed me off so much that I made it my goal to save as much as possible to buy my own place.
I’m sorry for your loss & sorry that she had to go through that in the last few weeks of her life.
I would love a system that gives everyone exactly what they want & need but sadly we don’t have it. Who else will pay for it? We pay a fortune in taxes but I know it likely hasn’t even touched the sides on how much my pregnancy cost the NHS or how much my other health issue has. Likewise with elder care. It’s tit that there will always be people that get something for nothing but unfortunately if that’s the route they’ve chosen that’s that, the rest of us have to pay for our care?
And because everyone in the government is either a landlord or has their own property they will do nothing to fix it.
Absolute parasites!
Few things make me rage more than people boasting about how much their buy to let portfolio has gone up and congratulating themselves on being such a smart person all while acting like theyre a pillar of society that works harder than anyone providing healthcare
My rent went up every year without fail
sickening
This could be 'deliberate deprivation of assets' and they can reverse it or back charge, even to the person who now 'owns' the property. I would need to be done well in advance of any care being required.The next level of insanity/scam I’ve encountered is a woman in her 30s being signed over her nan’s house as they don’t want it to be used for potential care costs in the future
If the house is gifted or sold and the money gifted it would be part of the estate for inheritance tax purposes (if applicable) but it'd probably be cheaper than paying for care. Again though if it's done just before care is needed it could be investigated and reversed.
They’ve probably been quite clever about the timing. If you’re fit and healthy and don’t believe you’ll need care then they won’t touch them. Her Nan could only be in her late 50s/early 60s so years away from it. I see both sides with this, not sure what the answer is.
Or it could of all be done within the rules.
My aunt and uncle have had a lot of money in their lifetime. At one point my uncles tax bill alone was £300,000 for the years and that was years ago! They have now got next to nothing. They are selling their £1.5m home in England to move to Scotland to get free care in their later years.
My parents in the other hand have been very careful with their cash, saved and would be expected to fund their care just because they’ve not spent it like my aunt and uncle. Oh the other hand, my uncles paid a lot more in tax than most.
Personally I think everything should be a level playing field, stamp duty, tax, care, inheritance tax. But I think that’s another debate.
Agree re another huge debate, one I didn’t mean to start on this chat so apologies. My point was more around intergenerational wealth than care - and how much having grand/parents that either owned & downsized or remortgaged or pass it down or equity release to give you a sizeable deposit (or just had the cash as cost of living was lower back then
) with property gives people such a huge advantage in life. And as Yel points out it’s very rarely from good old Tory hard workTM it’s just by chance these houses have appreciated in value SO much. I find it harder to have reverence for or defend their right to maintain large sums of money someone has by complete chance/as the result of a broken housing market, than money they saved from work? I don’t agree with private schools and don’t want to start that debate either but we were looking into all our options when the time comes & I said to my husband tbh unless you’re going to a school of note I imagine having your house deposit fund boosted with the fees in cash will give you a better quality of life and disposable income long term. I see it all the time at work & even on Insta in the influencing community, very few people that attended these minor private schools (obvs am aware for the super prestigious ones it’s an entirely different ball game but have no idea, we’re not from that sort of background) can afford to now send their kid(s) to one. They’d have far more of a head start/unfair advantage (lbr!) in life with their savings topped up by £20k*however many years you’re at school.
Home ownership is the real divider of millennials & subsequent generations and I can’t see how the government is ever going to help fix it.
They might find they don’t get free care when they actually need it. If the Scottish government get their way and there’s another independence referendum which is successful there isn’t a hope that everything that is free there now will be…but again that’s another debate! Agree that things need to be on a more level playing field for certain things though
If theyve 1.5 mill in the bank they wont get free care in Scotland. Also they do check back years if youve gifted it away. My grandmother had to use savings / sell her property to pay for her nursing home care.
They do check back but only as far as can be considered reasonable so if it’s a couple of years fair enough but if it’s 20 I think they’d struggle. But again by the time they need it it’s likely the rules will have changed again.
They aren't banking all that money, they have debts including to my parents.
7 years is usually what they check but not 20 no. Banks dont always keep records that long either. I think in work the most we can request is 7 years. Some banks may have older records but not obliged to provide them.
We’re currently going through this in Ireland & they go back 9. I believe in the UK you & your accountants have to keep everything for 6 years as HMRC can review you at any point but for deprivation of assets it’s a 7 year viewback from death, but I can’t help but suspect they’ll look into something as substantial as transferring a house regardless of time elapsed? Assuming these time frames have been set to consider the manpower it takes to trawl through years of bank accounts versus the payoff from these investigations, but with something as huge and as documented as a house transfer surely that would always be of interest? I’m ridiculously risk averse though, I wouldn’t be able to sleep for fear they’d be coming for me!
They can't go back further that 7 years because it is not against the law (in the UK) and not seen as avoiding tax. You can transfer your home to anyone you like, if you die within 7 years tax is liable, if you don't it isn't. There has to be a cut off.We’re currently going through this in Ireland & they go back 9. I believe in the UK you & your accountants have to keep everything for 6 years as HMRC can review you at any point but for deprivation of assets it’s a 7 year viewback from death, but I can’t help but suspect they’ll look into something as substantial as transferring a house regardless of time elapsed? Assuming these time frames have been set to consider the manpower it takes to trawl through years of bank accounts versus the payoff from these investigations, but with something as huge and as documented as a house transfer surely that would always be of interest? I’m ridiculously risk averse though, I wouldn’t be able to sleep for fear they’d be coming for me!
We have just done probate in Ireland and that is a completely different kettle of fish, they like to go back years and we had to provide all sorts of proof.
Threshold is about £28k so they’ll have to get rid of a lot…..
The cut off can be 14 years for some trusts or if they suspect tax evasion as part of it they can go back over 20 years.
I just wouldn't take the risk, if I have an asset and need help that it is unrealistic for tax payers to pick up (as contributions don't touch the side) I'd be happy to use that asset to provide choice and not be at the mercy of the local authority.
I just wouldn't take the risk, if I have an asset and need help that it is unrealistic for tax payers to pick up (as contributions don't touch the side) I'd be happy to use that asset to provide choice and not be at the mercy of the local authority.
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