Should I Give My Home Away to Avoid Care Home Fees?
No! Giving your home away is an extremely bad idea for a number of reasons.
Firstly, when you give your home away, you do exactly that, it is no longer your asset, it belongs to someone else. If the new owner divorces, dies or goes bankrupt, your home is one of their assets.
Secondly, whilst you own your home and live in it, any profit on sale is exempt from Capital Gains Tax (CGT) by virtue of Principal Private Residence Relief. As soon as your home is owned by someone who doesn’t live in it, any subsequent profit on sale becomes liable to CGT.
Giving away your home will not help you avoid care home fees as this could well be considered Deliberate Deprivation.
If you want help with any aspect of care fees planning, including the use of Trusts and/or Wills, please contact me or complete the form below.