How do I protect my home and assets from care costs?
PROTECT YOUR HOME.
We all work very hard and count our pennies to build and make our houses into homes and we work so hard because we want to have a roof over our heads and call this place but also so we can leave a legacy to our loved ones so that they can get a head start in life after we are gone. The costs involved in moving into a Care Home are absolutely extortionate and can be anywhere from £500 per week up £2000 per week and sometimes beyond. This can literally destroy out your any savings you have and often results in your home may having to be sold to make up for the care fees. Eventually this could mean that you started with a very big estate which was going to leave a legacy to your children and grand children but ultimately leaving them with little or nothing.
When someone enters care they are automatically “means tested” and ALL of your assets, including your home are taken into account. Only those who have very few assets will escape the costs of care. It is incredibly important that we protect your home as much as possible to reduce the possibility of losing the estate to care fees Your house which is now your home may have to be sold to someone to pay for your Care home fees.
- You could end up losing your children’s inheritance
- Your savings and investments could be wiped out.
- Any income would be assessed and used towards the cost of your care.
Firstly, it is important to safeguard your home. By simply changing the way you own your home, combined with the appropriate Trust planning, will effectively ensure that your property is protected should either of you enter care. Also, by simply changing the way any other assets are invested and held, can ensure that your cash or liquid assets are also protected from Care.
This form allows you to choose someone to make decisions about your welfare and healthcare. It allows someone to make decisions about where you live, how you are cared for and what healthcare you receive; this can include specific decisions about treatments or more general decisions. These decisions can only be taken on your behalf when the LPA has been registered with the Office of the Public Guardian and you lack the capacity to make the decisions yourself.
Save Your Home from Care Fees with a Property Protection Trust
PASS ON YOUR ESTATE.
Married couples or partners who want to protect their estate to pass on to their children can set up a trust to limit how much of the value of their home can be used to pay for the care costs of the surviving partner.
The State meets full long-term care costs only for those whose capital falls below a certain level. Though the Government has this matter under review, it is unlikely that the final policy will deal with the “hotel” costs of care – so a property protection trust is likely to remain very relevant. People cannot be ejected from their home to pay the fee for their spouse’s care, but if one partner dies and the surviving spouse then needs to go into care, all their property and assets could be used to pay for care until only a small amount remains.
You will need to alter the basis on which you own your home in Tenancy in Common and draw up a Will incorporating a Property Protection Trust. By means of this Trust, each partner leaves their half of the house in trust for their children (or other beneficiaries) but states that they cannot have it while the surviving partner is alive.
Although the surviving partner would have full use of the half of the house in trust, they would not actually own it. In other words, the local authority cannot take into account the value of this half share of the home in calculating the charges it will make to pay for care. The terms of the trust are dictated by the couple at the outset, so the surviving partner cannot for instance be thrown out by impatient children.