There are several issues to consider here:

1. Any gift within the last 6 months with the intention of avoiding such fees can be overruled.
2. Added to this is a further provision that any gift with the intention of divesting assets to avoid care homes can result in the original owner being treated as still owning the asset. The distinction between this and the first issue is that that all the Local Authority can do is demand the money, they cannot overturn the transaction. Even if they proved you had divested the asset and you couldn't afford to pay they would still have to provide care. But this is not the end of it.
3. If the local authority made you bankrupt to collect the debt and you transferred the property within the last 2 years it can be set aside (5 years in some circumstances) by the courts. In addition a bankruptcy hearing could decide that the whole transaction was fraudulent if the sole intention was to avoid a future creditor.

In summary much depends upon the timing and intention. If there are good reasons given for the transfer (not connected with Nursing Fees) and it was over 2 years ago then ordinarily it would not be attacked.

Whether it is a good idea at all is another matter. Consider what would happen if your children went bankrupt, divorced or died. The asset would be treated as theirs in these scenarios. There are also Capital Gains, Inheritance Tax and other Tax implications.

We can provide details of specialist lawyers who can assist if you need further advice.

Important! Ask your own free questions... Questions are answered accurately at the time they are posted but the law can change or your circumstances may differ in an important but not obvious way from those mentioned. For fast, free and up-to-date personal legal advice direct to your inbox about your own individual case ask Law Answers your own free legal question.

more about freecover and sign up form