Protecting your assets from Community Care Tax and other creditors is easy – if you act early.  Around retirement age is the right time to get sorted to make sure your family benefit from your hard work. Always remember that Inheritance Tax is a pretty modest and easily avoidable tax. Community Care Tax wipes out virtually entire estates every day.

So what is the problem?  Inheritance Tax or Community Care Tax?

Protective Property Trusts – Nursing Home Fees – Local Authority Debt Collection – Asset Protection – 70,000 homes a year sold by Local Authorities to pay Community Care Fees 

Community Care Warning:  do not delay – advance planning is safer and much cheaper

We’re on 0800 298 5208 or 03 300 102 301 from a mobile if you would like a brief no obligation chat.

Asset protection.

Asset Protection

Will the current debate on how to pay for Care Fees (started by Tony Blair in 1997!!) save your home? NO – the debate is about how to pay for the nursing side of care, and there is no intention of even considering paying “hotel” costs – which are generally at least half of the overall cost. So even if anything does happen after all this time, it will just mean it takes longer for your money to drain away!

Whilst Inheritance Tax (“IHT”) may slow down the trickle of wealth “down the generations” by taxing it at a “modest” 40%, but Community Care Tax, introduced by the Community Care Act 1990 can come close to being a 100% tax on your wealth. Under the “CRAG” Regulations (Charges for Residential Accommodation Guide):


Ask for our booklet or visit our site Bear in mind care home fees can top £50,000 a year if you need 24 hour care in a reasonable quality care home. What we can’t do (though we do know the right people to help you) is to guide you through the difficulties of choosing a decent care or nursing home and making sure you get the financial support and medical assessments, which is your due.  All we can do (with decent advance planning) is make sure the Local Authority doesn’t drain pretty much every penny of your joint wealth, which they will very happily do otherwise.  We don’t offer financial advice, which can further help to reduce the drain on your estate – but we know hundreds of good advisers.

If your assets exceed £23,000 and you need residential nursing care, the Government will contribute between nothing and around £100 a week to the costs you incur. These will typically be at the least £500 a week and could be double that.

YOU must find the rest. Once your assets drop below around £23,000 (2009/10) you will receive a slightly higher contribution, until below £14,000 (2009/10) the whole cost (up to a maximum set by your local Council) will generally be met by the Council. However, they are under a legal duty to recover as much as possible of the costs from your estate, and may well pursue people you have given significant gifts to and they will also sell your home (if you own it) unless it is still occupied by an acceptable dependent. Rates vary across the country.

You must ACT EARLY – or your Local Council could disinherit your children.

None of this saving is possible if you leave it too late, or if you already have an illness which can reasonably be expected to mean you will need residential care in future.  If you happen to know anyone who has left it too late, we also have a Community Care Advisory Service which, for a fee, can provide expert input into the needs, available benefits and which Care Homes are both appropriate and run in a caring and professional manner – many are not.

Community Care Tax – Professional Advice is essential

and it needs to be a professional experienced in the field as many people spend a lot of money doing very silly things which stand no chance whatever of working.

When should you act?  NOW or call 0800 298 5208

When you own a property with a partner, you should consider whether Inheritance Tax or creditors (usually Community Care Tax) are the major issue, and protect against one of them.  Our ongoing Peace of Mind Service will help you to review your options each year

The low cost route in the short term is to write Wills with Protective Property Trusts, sever the tenancy on your home, write Lasting Powers of Attorney (just these can save as much as £3,000 a year). Early planning is essential to the effectiveness of trusts to protect property. The longer the better, but with a minimum of 6 months before nursing care is needed.  Much can be done (for some) even after that even if it is too late for Protective Property Trusts.  Better yet, ask us about the Probate Home Protection Plan.

Community Care Tax