Alder Wills
Alder Wills

Care Fees

A proven strategy to help protect the family home

You have worked hard all your life, saved your money, and hope to have a bit to pass on to your family - but then it is eaten up by paying for Residential Care Fees! For a typical couple, figures suggest there is nearly a 1-in-2 chance that either or both of you might lose money in this way. What can be done about this?

THE SOLUTION

The solution is to ensure that the home is not personally owned on entry into care. The local authority’s financial assessment can then legitimately and properly be completed on the basis that the home is not a capital resource of the resident.

The solution involves putting the home into a trust, so that the trust is the owner of the property.

  • The former owner has a guaranteed right of residence in the property for the remainder of his or her life. The trustees, usually the children, cannot evict the former owner in any circumstances
  • The former owner has the ability to direct the trustees to sell the property and to buy a new property of the former owner’s choice. The former owner can therefore move property or trade down. The trustees have no choice in the matter. Of course in the rare circumstance where the new property might be more expensive, the trustees can only be required to buy the new property if the additional capital needed is provided by the former owner.
  • If the property is sold, for whatever reason, and a new property is not bought, usually when the former owner is entering care, then the proceeds of sale will be invested and the former owner will receive the interest or income earned on the invested capital.
  • On the death of the former owner (or second of two former owners), but not before, the property, or its proceeds of sale, passes to the chosen beneficiaries; the trust at that point operates similarly to a will.

MARRIED COUPLES

The trust described above is equally applicable to married couples as to single owners. In fact, married couples entering into the strategy will have the additional advantage that they do so at a time when if one of them went into care, the
home would in any event be disregarded due to the other spouse still living in it.

FREE NO OBLIGATION CONSULTATION
CALL MIKE JONES OR PETER HOARE 01344 751659 OR FREEPHONE 0800 0935273

(does not include cost of registration of lpa)

THE IMPORTANCE OF PLANNING IN ADVANCE

If planning is done well in advance then the various remedies and anti avoidance provisions available to the local authority can be avoided. The question is simply whether the measures taken ensure that assets are not brought within the financial assessment on entry into care.

Until the first death the family home carries a “disregard” status, therefore any planning undertaken while both spouses are alive is even more likely to be secure from local authority attack. If a husband and wife undertake long term planning while both are alive, their planning should usually be successful.

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