Care Home Fee Planning/Asset Protection

An increasing number of people are taking steps to protect their assets from future liabilities, which can include care home fees.

The rules regarding care home fee funding can be complex. Around 1 in 3 women and 1 in 4 men will need residential care at some point in their lives.

We have advised many people and their families on the options available to them regarding the family home and their other assets and advised on what steps can be taken to protect those assets. It is important to take advice from qualified solicitors when dealing with matters such as this and you should be wary of anybody who professes to have a ‘guaranteed solution’ to protecting your property from care home fees.

The steps available to you can include updating your Will, establishing a trust (in your Will or during your lifetime) and possibly severing the joint tenancy on your property, if applicable.

One of the most common forms of asset protection would be to establish a lifetime trust. A lifetime trust is often used to protect assets and the main features of such a trust would be:

  • The trust can be created by you or both you and your spouse.
  • You retain possession of the asset or house at all times.
  • The beneficiaries of the trust are often yourself and your children.
  • The trust lasts during your life or joint lives.
  • You retain possession irrespective of your circumstances.
  • There are usually two trustees.
  • The house or assets are transferred to the trustees subject to the terms of the trust.
  • The trust is maintained by the trustees, but they do not have ownership. They only look after it for you during your lifetime.
  • It is perfectly safe and secure for you as you retain rights of possession throughout the duration of the trust.
  • You can move house and the trust continues wherever you are.
  • Please note that the house must be in your name (or joint names) and free of mortgage.

There are also disadvantages to establishing a trust and we will of course advise you of these before you proceed.

If you would like more information about organising your estate why not read the following articles by Mr Michael Prendergast:

– Estate Planning

– Care Fees – Planning for the future

We have been advising the people of Ormskirk, Skelmersdale, Wigan, Parbold, Burscough, Formby, Southport and throughout Lancashire, Merseyside and nationwide for over 200 years on protecting their assets. Our specialist private client solicitors will be able to help you protect your home from care home fees.

If you would like further information please call our offices on 01695 574 201 or email Michael Prendergast.

01695 574201

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