Long term care comes in three forms – residential (a care home), domiciliary (care in your own home) and informal care provided by friends and family.
Meeting the costs of care can be a worrying conundrum. Income from pensions, savings and investments may go some of the way, but it could mean you need to mortgage or even sell your property.
It is important to highlight, at this point, that your house is disregarded from any local authority funding assessment if it is occupied by a spouse or relative over the age of 60.
My wife and I are in the process of reviewing my will. Is there anything we can do to protect our assets from being swallowed up by care home fees?
Thorough planning with a specialist probate solicitor can work to alleviate some of the concerns people face about funding long term care.
Creating a Life Interest Trust in a will provides an opportunity for your surviving spouse or partner to benefit from the assets you have accrued as a couple, whilst ensuring there will be something left for your ultimate beneficiaries to inherit.
The trust usually comes into operation when the first spouse dies. It will ensure their half of your joint property goes into the names of your beneficiaries and gives the surviving spouse a life interest. If they then need care, or remarry, the assets in the trust are protected from claims by creditors or local authorities.
The right for the beneficiaries to receive an income from the trust or use the assets would normally last for their lifetime, or terminate earlier upon remarriage.
How do we set up a Life Interest Trust?
For your property to be placed into a trust, it must be owned by you and your spouse as ‘tenants in common’ rather than ‘joint tenants.’ Your solicitor can check the title for you to see how it is held.
Trustees must then be appointed to safeguard the assets and act in the best interests of the beneficiaries. They would usually be the surviving spouse and any children you share (as long as they get on together). Crucially, they must act unanimously.
When you or your partner dies, half of your property will pass to the trustees to manage. The survivor will have the right to continue living in your home or downsize if they need to in the future.
If you would like to find out more about setting up a Life Interest Trust or planning your estate through your wills, don’t hesitate to contact us.
To find out more about making or reviewing a will, why not book a free 30-minute consultation with one of our probate specialists? Telephone (0114) 218 4000, email: info@tayloremmet.co.uk or complete this form.
The post Protect your home from care fees appeared first on The Taylor&Emmet Blog.