Do you consider it fair that the local authority can force the sale of your home to pay for your long-term care? If you never require long-term care for yourself, is it fair that your half of the house should be given up to help pay for your partner's care after you've gone?

Fact 1 Inheritance Tax (IHT), where assessable, is currently payable on any estate valued over £300,000 at a rate of 40%

Fact 2 Long Term Care (LTC) funding is potentially payable on any estate valued at or over £21,000 at a rate of 100%

We have developed a system to try and ensure that at least your half of your house (normally your biggest asset) will eventually go to your intended beneficiaries rather than be seized by the Local Authority to pay for the long term care, if needed, of your surviving partner.

To achieve this we would need to prepare various legal documents, including the writing of your Wills to include a “property trust”, to protect your family's inheritance, Enduring Power of Attorneys and a Severance of Tenancy.

Please bear in mind that this course of action requires JOINT ACTION and can only be achieved whilst you are both still alive. Should either of you die or become mentally incapable before instructing us then we cannot, unfortunately, be of any assistance. “DON'T PUT OFF UNTIL TOMORROW…….”.

HOW DOES IT WORK?

In simple terms it requires you to become tenants in common rather than joint tenants. This means that you will each own half of the property which you can then leave to your intended beneficiaries IN TRUST on your death.

The trust being that the remaining partner can live in the house for as long as they wish, they can also sell the property and buy another one to which the trust would relate, and on their death their half would also go to the intended beneficiaries.

If the remaining partner has to be taken into care then at least your half of the property should be safe and “out of reach”. We would also prepare Enduring Power of Attorneys for you both enabling the beneficiaries to register and take control in the case of being taken into care.

As stated this is a simplified version so if you are unsure as to the implications or if you require further information then please do not hesitate to contact us and we will be only too pleased to advise you.

So whether you are:

Married, single or widowed but concerned about Long Term Care generally

Already receiving care or local authority support and assistance

A son or daughter concerned about LTC planning for your parents

Considering updating your Wills and establishing a Property Trust

Considering 'equity release' from your home to fund LTC

Researching LTC issues for a relation, friend or neighbour

Then we would urge you to contact us to see if we can be of help.

ATTENTION JOINT OWNERS OF PROPERTY - If your house is not in both your names we may still be able to help so contact us and we will advise.