Care Costs

What will happen to your assets and savings if you need to go into long term care for any reason, this might be as a result of infirmity through old age or as a result of a serious accident, stroke or other major illness?

The answer is shocking to many people, if you have assets including a home which are valued in excess of £13,500 then you are expected to pay for at least part of your own care costs. If you own more than £22,250 in assets including the value of your home you are expected to pay all of your own care costs.

Under the Community Care Act 1990, the local council have the right, by law, to force the sale of your home to pay for these costs or to take a charge against your property to be repaid on the eventual sale of your home.

If this happened then it might mean that when you eventually die there could be very little left for your surviving family. Care home costs can be in excess of £600 per week. This will soon eat away at the capital you have spent a lifetime building up.

How can you avoid this happening?

It is illegal to deliberately transfer your own property to relatives or trusts if your prime motive is to avoid paying long-term care costs. However, it is not illegal for you and your partner to each make a provision in a will, that ensures upon the first of you dying, your property is to be placed in trust for their children or other beneficiaries, instead of passing direct to the surviving partner.

The Protective Property Trust Will has been specially designed for this purpose. It keeps any designated property owned by the deceased away from the council's reach. At the same time allowing the surviving partner to continue benefiting from the assets, which may include the family home.

On the death of the surviving partner the assets owned by the trust together with whatever is left of the assets of the second partner can be given to the surviving family.

For more information on homes being sold to pay for care costs click here

To ensure peace of mind why not have our consultants come and visit you in the comfort of your home for a free consultation.