Many elderly people end up in care homes, and the costs of long-term care can go through the roof. This can even lead to people losing the majority of their assets in order to cover the care expenses. If you have a family and you want to pass on something to them after you’re gone, you need to make sure this doesn’t happen to your property. To protect your property and assets from such acquisition, you need to make a Protective Will Property Trust. This document can preserve at least a half of the value of your property for your children to inherit.
If you don’t establish a Protective Will Property Trust, you can easily lose the majority of your assets and there will be only £23,000 left. According to current laws, if a couple is living together in a family house, and one of them dies, should the other person need to go into a care home, the local council is authorized to use the value of the property in order to cover the care costs. Usually, this will mean having to sell the house. This process can be devastating for the families as they may have to settle for a portion of the value of the property and savings, instead of inheriting the full value.
To try to pass on your property to another person or to a trust if your goal is to avoid paying for long-term care fees is illegal. Fortunately, there is a legal way to preserve at least a half of the asset for your family. If a couple is living together, and they’re registered in the title deeds as Tenants-in-Common, this means that each of them has a share of the property (usually 50%). If they don’t have this status, they can apply to the Land Registry to make this change for a small charge. The process is pretty straightforward.
When the two are listed as Tenants-in-Common, they need to make an adaptation in their Wills. The provision in both Wills should say that the asset of the partner who dies first is to be put into a trust and preserved for the couple’s children to eventually inherit. This way, the surviving partner can live in the house for the rest of their days, and they can even move house. If the survivor needs to be placed in a care home, only his or her half of the property could be used to pay for it, leaving the other half intact.
For any additional information contact The Will Associates today by calling 0800 9500 700 to arrange a free, no obligation consultation at a time convenient to you and your loved ones, in the comfort of your own home.