Will Trusts may protect from Long Term Care costs
Sep 3, 2009
An article published in the Sunday Times on May 18, 2008 looked at the growing problem of Long Term Care.
In England, anyone with savings or capital (e.g. value in your home) of more than £23,000 is required to pay for their own care fees.
If your Will simply gives your property to your spouse or partner at your death, and they later require Long Term Care, a Local Health Authority can force them to sell the property to pay for Long Term Care.
However, if your property passes as a Trust for the benefit of the survivor, then the children, the Council cannot force you to sell it. We routinely use these Trusts in our Wills.
Without a Will, most couples own their home as Joint Tenants, meaning each member owns 100% of the home, so that there is nothing to transfer at death. As part of our service when taking instructions for your Wills, we also change the way couples own their homes. If you have a Will, you should own your property as Tenants in Common (we do this for you, if we provide your Will and it is not already done). This means each person of a couple owns 50% each of their homes, during life and the share of the home can pass through their Wills (as a Trust) at death.
Local Health Authority Guidelines state that the value of a half share in property is in effect nil, so if either member of a couple required Long Term Care during life and each member only owned 50% of their home, a Local Health Authority could not force the sale of the home.
Therefore, by making a Will, you receive some protection of your property during life and after your death.
To read the full article, clickhttp://business.timesonline.co.uk/tol/business/money/savings/article3952716.ece