Alert issued over £3k care trust con
AWARNING has been issued by Halton Borough Council of the risks posed by firms asking residents to pay thousands to avoid care charges.
The local authority is urging people to be aware of companies which create trusts that may not be legally valid and carry unknown risks.
A council spokesman said that firms can ask for up to £3,000 to draw up a will and create a trust and claim they offer advice on how to protect homes and savings from being used to pay for care.
Cllr Dave Cargill, executive board member for Trading Standards, said: “The companies often advise that you dispose of your home to family members by creating a trust so that your home is not legally yours and therefore can’t be included in an assessment of your ability to pay for care charges.
“Such companies can charge up to £3,000 to draw up a will and create a trust for you but the trust will not work if the council can show that you have deliberately disposed of your assets to avoid paying care charges.”
A council spokesman said residents who are concerned that they or a family member may need care in the future are being asked to consider the following before giving any money to anybody to create a trust: ● Nobody is forced to sell their home in their lifetime to pay for their care. ● The amount paid towards care depends on levels of income and savings. Those with savings over £23,250 will be expected to pay the full cost of care. In some circumstances the value of a home will be taken into account.
The council spokesman added that the value of someone’s home who ● requires social care is ‘ignored completely’ in several circumstances.
These include if residents receive care in their own home, and if they enter temporary residen- tial care and are expected to return home within 52 weeks.
Other circumstances include if residents enter permanent residential care but their partner, child, close relative aged 60 or disabled remains living in their home.
The council spokesman said: “Don’t be tempted to make a snap decision, especially if the person advising you will be earning money from you, creating a trust is an important legal decision.
“If you sign your home over to someone else this could have serious consequences because you will have no legal right to it.
“Transferring all or part ownership of your home can change your rights as an owner.
“If the council believes that you have given away savings or assets such as your property in order to pay lower care fees, you may still be treated as owning those savings or assets in full and still be charged the full cost of your care.
“The law further allows the council to take recovery action against the person that you have given your assets to and could result in a County Court Judgement being taken against them.”
Information leaflets on deferred payment agreements, fairer charging and residential charging have been produced.
To receive copies email trading. standards@ halton.gov.uk
For more information on how care charges are assessed contact 0151 511 7888. Alternatively email fairercharging@ halton. gov.uk