Planning ahead for residential care fees
If you are concerned that in the future you might need long term residential care, or have to pay nursing home fees:
- Your savings could be eaten up
- Your home might have to be sold to pay the fees, leaving little or nothing for your family to inherit
This is a very complex area as you have to look in detail at:
- The value of your house and savings
- Your income, both now and in the future
- Benefits you might be entitled to if you had to go into care
- Your family’s circumstances, including those of your children
- The statistical probability of you needing care in the future
We can discuss all of your options and produce a detailed personal report to allow you to make the most appropriate decision for your circumstances.
How care fee protection trusts can help
A possible solution is to create a care fee protection trust, placing your home into the ownership of trustees in whom you have confidence:
- Many choose to appoint their children as trustees
- The trustees must hold the property on the terms of the trust that you establish
- You can preserve a right of residence (for you and your surviving spouse) for the rest of your life
- You can ensure that you cannot be evicted in any circumstances
Because your home is not personally owned by you, if you later go into residential care, the local authority’s financial assessment will not treat it as a capital resource, so the risk of a forced sale to pay residential care fees is avoided.
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Contact our specialist Trusts Team for advice on planning ahead for residential care, including care fee protection trusts.