As you are probably aware, the Government recently made a promise to pay some of the costs relating to Long Term Care. Yet, what exactly does that mean in real cash terms and how could it affect you?

In fact, the Government has only agreed to pay certain costs relating to nursing care, for example, the time spent by a nurse with the patient whilst the individual is still liable for the residential and personal care costs- the costs for residential care average at £24,000 per annum with the cost for a typical nursing home at approximately £29,000 per annum. Source: This is Money December 2006.

In the UK today, nearly half a million people are living in residential care. The cost of caring for the growing army of pensioners is predicted to soar to nearly £30 billion by the year 2030. Source: Daily Mail June 2004.

Women have a one-in-four chance and men a one-in-six chance of needing long term care. Under the Community Care Act 1990 the local Council has legal right to seize the family home, put it up for sale and use the proceeds to support Long Term Care Costs. Your home could be under real threat.

It is estimated that at least 70,000 homes were seized in 2001 (200 per day) with 4.3 billion worth of hard earned money being used to pay care costs. Source: Daily Telegraph April 2004 and Hansard report 2001.

How can we avoid these costs? It is illegal to deliberately transfer your own property away to relatives or Trusts if your prime motive is to avoid paying the Long Term Care Costs.

However, it is not illegal for your partner or spouse to make a provision in his or her Will that states upon death their half share of the family home can be placed in Trust for your children or other loved ones instead of passing directly to you. The difference is that you don’t own your spouse’s or partner’s half share in your property, so you cannot be said to be reducing your Estate illegally!