Protecting your assets from nursing home charges is a situation faced by most seniors moving into care. On the one hand you want and deserve the best care, but on the contrary, you don’t want to lose your property for receiving care – and rightly so. But, is there a middle ground?
Currently, in the UK, there is no financial support for the extended care of the elderly with assets more than £23,250. Ordinarily, nursing home costs in the United Kingdom range from £30K to £40K a year. Most couples own their homes as joint tenants, and when one of them dies, the surviving partner assumes
The rising cost of home care fees means that people have started seeing that their assets are being reduced by care expenses quicker than ever before. If just one of you needs home care, you will lose almost all your assets in 6 years, with nothing to leave for inheritance.
Protecting Your Home From Care Home Fees
But, how can I protect my home from care fees? You may ask
Well, luckily, there are ways which a couple can protect all these from happening. One good measure is making a will which enables you to leave your home and assets to your partner and then to your children and grandchildren for life or to whomever you wish. When you make a will, you indirectly protect your property from being used as collateral.
You can consider making a Property Protection Trust Will also referred to as a Care Fee Trust Will. Indeed, this will make sure your home is left to whoever you want. With this will, your other half can use your home share during their lifetime and can move home with a trustees’ permission. However, should he or she need care, the Local Authority can’t take your share to settle for care fees since your partner doesn’t own it.
Is avoiding care home fees by a trust, possible?
Of course, you might be tempted to put your home into a trust to avoid care home fees, but do not be too hasty. When you put your home in a trust and name someone else as your trustee, you are no longer the owner of your house, and if you happen to go to care, your house is no longer calculated as part of means testing.
It might also seem like a good way of protecting your kids’ inheritance, but nowadays local authorities are becoming wise to this scheme, and they have their teams to ensure no one is using it to evade paying the rising care costs.
Planning can help you avoid paying hefty care home fees
One of the things you should be aware of is that it is tough to avoid paying care home fees unless all your assets are below the threshold. Careful planning can make sure that you fund your care in the most efficient way possible and avoid paying for unnecessary costs. You can hire a care adviser to help you look at all your options as well as make sure you have claimed all the benefits you’re entitled.
The bottom line
With some options available, it can be hard to make a decision. You need to make sure the decision you make is the best and right for you – that’s why seeking professional advice and information is important. But, of course, your choice will largely depend on your financial situation and preferences.
Location: Braintree, UK
3rd October 2017 by Braintree Wills