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Fraud unravels all

Professional advisers must be aware that advice given for the purpose of sheltering assets from care home fees will have to be disclosed in court, says Christine Cooper

20 February 2015

With care homes costing at least £20,000 per year, many people will have to realise that they must spend their own money to pay the charges. At present, all but the last £14,250 of capital must be paid towards these charges.

Unsurprisingly, many people look for ways to protect assets and preserve them from being used to pay for care.
It is important that those advising private clients in this area are aware that the advice given is unlikely to be privilege, and may have to be disclosed in the event of a dispute with the local authority.

The precedent

This was established in the recent case of London Borough of Brent v Kane and Others [2014] EWHC 4564 (Ch). The local authority had provided residential care for the mother first, then a few years after ...

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