Long-Term Care and Trusts Case Updates

Long Term Care Financial Assessment Case Updates

We talk a lot about utilising trusts to protect assets and why this matters. But are you talking to your clients about the possible implications?

Our Vulnerable Client Care Team have recently had the following successful outcomes when dealing with local authorities in relation to financial assessments where assets have been settled into trust:

Long Term Care Case 1 – Mr N

Mr N entered long term care in summer 2020. Half of the property he had been living in had been held in a discretionary Family Trust since 2018, following the death of his late wife.

A financial assessment was completed. The local authority confirmed that because half of the property was owned by Mr N absolutely, they considered that this held a realisable value and would be increasing his financial contribution to his long term care costs.

Outcome

The client’s son approached Countrywide Tax & Trust Corporation Ltd in August to instruct us to act on behalf of the Trust. We disputed the local authority’s position in correspondence on the basis that the Family Trust held a 50% share, deeming the 50% held by Mr N worthless. Within 2 months, Countrywide achieved the result in favour of the client and the Trust. The Council confirmed that they would disregard the property, contribute towards the client’s care, and charging him the lower amount of the maximum contribution.

We also obtained a professional valuation to be carried out on the property, to support the Trust’s argument that the 50% owned by Mr N had a nil value.

Long Term Care Case 2 – Mrs A

Mrs A settled her property into a PPPT in 2015. She entered long term care in 2019 and following the outcome of her financial assessment, the Council decided to include the property she had been living in as part of her assets when calculating what she needed to contribute. The Council alleged that she had deliberately deprived herself in settling her property into trust during 2015.

Outcome

Countrywide responded on behalf of the Trustees defending this claim. Explaining that no one could have foreseen that Mrs A would have gone into care in 2015, and therefore settling her property into Trust could not be seen as deliberate deprivation. We asked the council to reconsider their decision on this basis.

The local authority responded overturning their previous decision and concluded that the client’s property was to be disregarded and the original finding of deliberate deprivation was invalid.

If you need further help or advice in any of these areas on behalf of your clients, please contact the Vulnerable Client Care Team for further assistance.