Important information for home owners
The 1993 'Community Care Act' empowers Local Authorities to make you financially responsible for contributing towards care cost fees. (if your assets exceed £23,500 you are deemed able to pay the full costs). This may mean that your loved ones will not receive the benefit of your hard work over the years. With Local Authorities coming under increasing financial pressure this act may be used more and more in the future.
At Will Solutions we can prepare a Protected Property Trust to ensure that your share of the house passes to your loved ones on the subsequent death of your surviving spouse, regardless of whether or not he or she had remarried after your death, or indeed had to go into care.
How Does the Protected Property Trust Work?
Each partner leaves their share of the property in trust for their children or other beneficiaries rather than to the joint owner of the property.
This means that the survivor never becomes the sole owner of the property, which prevents the Local Authority including the whole value of the property when totaling assets, if the survivor needs permanent residential care. Only the value of the survivor’s share of the property would be included in any means test
Only after the survivor dies does the first share of the property pass to the children or other beneficiaries. The survivor cannot be forced to sell or move without consenting. The Protected Property Trust can also protect the residential rights of a current partner if the property share is to be left to children from a previous relationship or other beneficiaries.
You can only use a Protected Property Trust whilst both property owners are alive and of sound mind. If this applies to you ACT NOW whilst this option is open for you. This scheme is subject to future changes to legislation.