One of the biggest worries for retired people is funding the cost of residential care when they are no longer able to live independently. Many people are also concerned that the assets that they have earned during the course of their lifetime will be used to fund this care and so will not pass to their intended beneficiaries. While you cannot try to avoid nursing home fees by deliberately transferring your assets when the need for residential care arises, there are measures that can be taken to plan for this eventuality.
Most people’s main asset is their residential home. The value of your home will be considered by your local council when carrying out their financial assessment. Your home will not be considered as part of the financial assessment if your partner or any other dependants continue to reside there. The council may also not consider the value of your home if it is where your carer lives. If your home is included as part of the financial assessment, then it could be used as collateral to fund your residential care. With the cost of residential care costing around £25,000.00 to £30,000.00 per year, the value of your property will quickly reduce.
There are steps that can be taken to protect your property from being included as part of any financial assessment. At Drake Legal we could create a Property Protection Trust for you. This Trust operates by transferring your share in the residential property into a Trust through your Will at the time of your death. As the share of the property has been placed into a Trust it does not form part of your surviving spouse’s estate for the purpose of the financial assessment. The Trust will allow your spouse to continue to live in the property until their death when the Trust will be dissolved and pass to the beneficiaries that you have appointed.
However, please note that the Trust only comes into operation after your death and will not protect the property from being included in the financial assessment if both you and your spouse require residential care.
Drake Legal can help you plan to protect your assets to ensure that in the event of your death your wealth is distributed to your loved ones.
Drake Legal may also be able to help you protect other assets by the creation of other trusts or simply by taking advantage of annual or other tax exemptions.
Contact Drake Legal now for a free, no obligation consultation on 01822 810767 or request a call back by completing this online form.