Are you worried about your assets being used for care fees in the future?

Over recent years, fees for care have increased significantly making each person worry about how their assets will be used to pay for their care in the future.

Currently, the average weekly cost of a residential care home is £900 per week. This could mean spending around £47,000 per year just on care fees!

With the majority of people working until the retirement age of 66, it is becoming increasingly more important to protect the assets you have worked hard for from being dwindled away in care fees as you get older. Due to the rising cost of care fees, you can expect your assets to quickly depreciate leaving you with a fraction of what you have accumulated during your working life.

If your property is your biggest asset, you should consider protecting this from being used for care fees in the future. However, it is important to appreciate that if you do need care, it will need to be paid for. Each year, the council has less money than needed to provide for the local area and therefore the money used on care is slowly reducing over time. Having some capital behind you means that you will be able to choose where you are looked after.

Is there a way we can protect our Property from Care Fees?

Yes. At Oxley and Coward, we have a wealth of experience in advising our clients on the best way to protect their property for the future. This often includes a ‘Property Protection Trust’ which we would include within your Will. This is also recommended if you have previously been married as a protection from sideways disinheritance. Keep an eye out for our next blog about this!

What is a ‘Property Protection Trust’ and how does it work?

A property protection trust is a type of trust included within a couple’s Wills to protect a share of your property from being used for care fees in the future. The trust ensures that when the first of you passes away, your share of the property is ringfenced within the trust in the event the survivor goes into care later in life. This ensures your chosen beneficiaries will always benefit from at least half the value of your property, even if you went into care.  The survivor will still own their half which can be used to fund their own care, if necessary.

Does this affect how you live in the property?

No. An amendment may be necessary within your title deeds to change the way you own the property to ‘tenants in common’ rather than ‘joint tenants’. This ensures that your respective share of the property can be placed within the trust on your death and not automatically be transferred to the survivor. However, this does not affect the day to day running of the property and you will not notice a difference while you are alive. You are still able to move properties and downsize if you wish, the trust will just follow any respective properties you owned.

What happens if I don’t do this?

If you wish to discuss the protection of your property further or would like any further advice, please contact our office to arrange a free appointment with one of our legal advisors who would be happy to help.