1 in 4 of us will require long term care at some point in our lives!

What will happen to your assets and savings if you need to go into long term care for any reason, this might be as a result of infirmity through old age or as a result of a serious accident, stroke or other major illness?

The answer is a shock to many people, you could have to pay all of the care costs yourself. If the value of the assets you own, including the value of your home exceed £13,500 then you are expected to pay for at least part of your own care costs.  If you this value is in excess of £22,250 including the value of your home you are expected to pay all of your own care costs.

Some care homes are costing in excess of £600 per week.

Under the Community Care Act 1990, the local council have the right, by law, to force the sale of your home to pay for these costs or to take a charge against your property to be repaid on the eventual sale of your home.

If this happened then it might mean that when you eventually die there could be very little left for your surviving family. Care home costs can be in excess of £600 per week. This will soon eat away at the capital you have spent a lifetime building up.

How can you avoid this happening?

You and your partner could each make a provision in your Wills, that ensures upon the first of you dieing, the deceased half of the property is placed in trust for their children or other beneficiaries, instead of passing direct to the surviving partner. By doing this the remaining partner can still be given the right to live in the property until they die.

It is illegal to deliberately transfer your own property to relatives or trusts if your prime motive is to avoid paying long-term care costs.

The QPMS! Protective Property Trust Will has been specially designed for this purpose. It keeps any designated property owned by the deceased away from the council's reach. At the same time allowing the surviving partner to continue benefiting from the assets, which may include the family home.

On the  death of the remaining member of the couple the assets owned by the trust together with whatever is left of the assets of the second partner can be given to the surviving family.

BBC Panorama produced the following programme on homes being sold to fund care costs click here. You May find this of interest.

To discuss how we could help you why not have our consultants come and visit you in the comfort of your home for a free consultation

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