Avoiding care home fees - setting up a trust may help
If you are worried about the implications of paying for your own care home costs, or you are worried about the impact this might have on your assets, give us a call now on 023 8007 0169
what is a lifetime trust?
Simply an instrument to protect your family's assets.
Can we put our family home in a Trust?
Yes, you can put up to £300,000 in one Trust and if the family home is worth more, then you may create two Trusts (two owners) for up to £300,000 each with a house up to £600,000. If the house is worth more, then the Trusts would just protect up to £600,000.
If a Home goes into a Trust can we sell and move to another?
Who would be the Trustees?
A Trust Company run by solicitors and your nominated Trustee, typically a family member.
Why would I need to Act Now?
The sooner you act then the better your chances of avoiding care home fees consuming your family inheritance.
What are the risks of losing our family home to care home fees?
If you have retired relatives, the risks are as high as 1 in 2 eventually going into a Care Home. The costs can typically be more than £1,000 a week and the time staying in a Care Home can easily be 5 years. That would typically cost £250,000.
To remove that £250,000 risk, what would it cost us?
As little as £2,200 for one person's trust or £3,300 for two Trusts for a couple.
Ring Fencing Assets
Assets held in Trust are normally disregarded for care purposes provided that the Trust has been set up correctly and the assets ‘ring-fenced’ at the right time. If you were fit and healthy when setting up the Trust and could not have foreseen the need for care then the local Authority cannot make the assumption that your motive in setting up the Lifetime Trust was to avoid care home fees.
What if the Assets put into Trust fail the local authority test?
As part of our vetting process we assess your suitability for these Trusts. If you pass that then you can take up the Trusts. Within our overall fee for these Trusts is a Money Back Guarantee of £3,000 plus £500 for Legal Expenses in the event of a successful local authority legal challenge in respect of the property. This indemnity is from an Insurer for the lifetime of the Trust, providing you do not engage directly with the local authority and instead leave it to the Trust's solicitors to handle such matters.
Does Time Matter?
Yes. Act now, best to act 5 or even 10 years before a care service is required and then you can protect your family's assets. Those who delay, have a 1 in 2 chance of losing tens of thousands of pounds and sometimes, sadly, the whole home.
Can I put in Assets other than the Home?
Yes. Please call us for advice.
Can the Trusts guarantee each owner the right to remain if one owner dies.
Could the Trusts avoid Probate for the assets placed in Trust?
Could the Trusts protect family assets from divorce, bankruptcy or substance abuse?
Yes, in some circumstances.
Can the Trusts reduce or avoid inheritance Tax?
Call us today on 023 8007 0169 or send us a message using our contact form below. We will get right back to you.