Did you know...
If you have assets of worth over £14,250 (as at 2011) and you require care in the future, the local authority has the power to take your assets to pay for your care.
Care home fees range from £2,500 to over £5,000 a month, so it is easy to see why so many homes have to be sold to pay for care.
However, you can protect your home and avoid having to sell it to pay for long term care with some simple trust planning.
By holding your assets in a ‘Life interest trust’ the assets are protected so that only you and those who you specify will benefit from them.
A Life interest trust can be created as part of your Will or as a separate document.
Advantages of a ‘life interest trust’
- You retain the right to live in the property for as long as you live, which would not be the case if you simply give your house to your children
- No need to sign the property over to your children
- You can sell the property to downsize at any time
- No issues if one of your children gets divorced or becomes bankrupt
- Your children will not have to pay any Capital Gains tax, which they would otherwise have to pay if you simply give your house to them
- Your children retain most of their inheritance without it being used for care fees.
A simple trust costs just £500.00 plus VAT.
