To dodge care costs is a dangerous game

you sold assets thinking they would then be taken out of that calculation, you may be in for a shock.

“Clients often believe there is a ‘seven-year rule’, ie the local authority can’t look at gifts more than seven years previously. That is not the case – there is no time limit, and all gifts can be considered.”

The seven-year rule is one that often causes confusion. This rule actually applies to gifts that you give away to someone else that will fall outside your estate for inheritance tax purposes as long as you survive for seven years from the date that they are gifted.

A different timetable applies when local authorities are looking at your assets for the purposes of calculating care costs.

Donna said: “Currently, if the gift was made more than six months before applying for assistance with care costs, the local authority cannot recover the gift from the recipient, although they would still look to the donor to pay for care.

“They do still have an obligation to provide care where it is needed, but that may not be at a care home you and your family would have wished.”

There are ways, through careful will and estate planning, to reduce the effect of care costs, and your solicitor will be happy to discuss these with you to ensure that you have full clarity on the options, their implications and their cost.

Sometimes the cost of seeking advice and the actual cost of the advice that you receive can be greater than the costs you are initially trying to avoid, so care needs to be taken to make sure that you know in advance what you will be paying for, and how much you will be paying.

Email your problems to Or post them to The Money Doctor, Daily Record, One Central Quay, Glasgow, G3 8DA Unfortunately Fergus can’t reply to every question in person.