In what has been described as "the meanest of means tests", those with assets - which in most cases will include the value of their home - of more than £23,500 are given no help at all with care costs.
These "self-funders" may receive a weekly contribution towards nursing costs, depending on their health needs, but will have to pay the full cost of accommodation and personal care.
Usually a discretionary trust also has a letter of wishes for the trustees to consider, which may give one beneficiary the trustees' permission to live in the house or receive the income from investments. The tax treatment of fixed interest trusts is different from discretionary trusts.
Personal injury related Disabled Trusts are established for working-age adults or some children who want to retain their entitlement to means tested benefits, now or in the future, such as:
Under the current rules - if you have over £6,000 capital you are at risk of having some or all of your benefits reduced. If you have over £16,000 then you are at risk of losing them all entirely.
A traditional Disabled Trust is usually founded by a third party for the benefit of another e.g. a child with a disability. It has certain tax and other advantages apart from fulfilling a protective function.
GPs have voted to end their responsibility for visits to care homes and house calls, arguing they ‘have not got the time, the workforce or the flexibility’ to fit them into their day...more