Wills and Trusts to protect your home from Care Home Costs.
Don't let your home fall into the wrong hands!
Wills can be simple and straightforward, or they can be used with Trusts to achieve numerous objectives. 50 Plus Wales offer a full range of Wills and Trusts.
Our most popular Wills are Single Wills - for one person, Mirror Wills for couples and Wills with Property Protecting Trusts for couples.
What is a Property Protecting Trust?
For most people their home is their main asset, and they expect their children to inherit that home at some time in the future. But life isn't always that simple. Things can happen that could put that property at risk.
We insure our homes against physical threats - fire, flood, subsidence etc, paying £100's each and every year to do so. However, there are less obvious threats to your home which cannot be insured against.
Here are some examples of how your home could be taken by others.
A Property Protecting Trust Will is a Will designed to help protect your property from Care Home Costs and other threats - and at a cost of £295, (£220 when a Funeral Plan is also taken out), you can do that.
Here is an example that happens more than 420 times a week, every week of the year, in the UK.
A married couple jointly own an average house in Wales. The average price of a house in Wales is £162,908. Sadly, but inevitably, one of them dies. The house is now owned totally by the surviving partner. Some years later the surviving partner needs to go into a Care Home.
The Local Authority has the right to sell the surviving partner's home to pay for the Care Home costs, and last year they exercised those rights more than 22,000 times! The average cost of a Care Home in Wales is £517 per week (£676 per week if nursing care is needed), that is a staggering £26,884 per year for average Care Home costs with no nursing care.
6 years and 21 days later the entire value of the house has been spent on Care Home costs. It takes just over 6 years to eat up what took you a lifetime to build. Just over 6 years to spend every penny of what you thought was going to be your "children's inheritance".
A Property Protecting Trust Will, can protect at least half of that money, at least half of your children's inheritance (more than £80,000 in this example) - but it has to be done before one of the partners die. If one of the partners is deceased it is too late!
Wouldn't it be easier to just give the property to the children?
It may seem a lot easier, but there are a number of risks to this strategy.
Firstly, giving your house to your children can be interpreted as "deliberate deprivation of assets” particularly if you carry on living in the house and do not pay rent at a market rate - for what reason, other than deliberately depriving yourself of assets, would you have taken this action? Local authorities can take the property back from your children if they can prove that the objective was to avoid care fees. The Inland Revenue have similar powers.
You could become homeless, should any of your children become bankrupt, get divorced or die during your lifetime? If any of these happened, a sale of the property could be forced to make the child’s share of the property available to his/her creditors, the court or his/her executors. Or, you might simply fall out with your children and they could request that the property be sold so that they can receive their share of the cash proceeds from the sale - and there are many examples of this happening every year.
Even if none of these events occurred, there can be capital gains tax implications for your children when the property is ultimately sold.
Property Protecting Trusts can be used by anybody that co-owns a home, e.g. married couples, civil partners, couples living together etc.
This is just a brief overview of Property Protecting Trusts, to find out more, and have all your questions fully answered give us a call on 08000 588 488, or drop us a line at firstname.lastname@example.org or complete the short Online Enquiry Form below.
We cover all of South Wales, including Cardiff, Newport, Swansea, Llanelli, Carmarthen, Neath, Port Talbot, Bridgend, Pontypridd, Merthyr Tydfil, Barry, Ebbw Vale, Pontypool, Cwmbran, Chepstow and all surrounding areas.
We also cover Hereford, Gloucester, and Bristol.
We look forward to being of assistance and making sure that your home goes to who you want it to go to.
To find out more, or to request a free consultation in the comfort of your own home
Call us on 08000 588 488, or
email us on email@example.com or
complete the Online Enquiry Form below.
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