After a lifetime of paying taxes, national insurance, VAT and other contributions, most of us would expect care to be provided if required in later life. Well, the good news is that will be. The bad news is that it is “means tested”. If you have assets valued over £23,500, including your house and savings, then you will be expected to pay for that care yourself.
With care home fees running at around £25,000 to £55,000 per annum, it does not take long for even a healthy nest egg accumulated over a lifetime’s hard work, investment and prudence to disappear entirely. This money was supposed to pass to your children and grand-children.
Did you know that 1 in 3 women and 1 in 4 men over 65 will go into care?
Did you know that your Council can take all your assets including your house to pay for the care? Only the last £14,500
What can be done to protect my estate for my children?
So, you have three options:
- You could do nothing and hope for the best.
- You could transfer your assets to your family.
By doing this you may protect your assets but you lose control. There are many things that can go wrong with this, your family may have to pay Capital Gains Tax on the asset, they may get divorced or go bankrupt, (possibly resulting in you losing your home) or simply fall out. The local authority could challenge the transfer as deliberate deprivation of assets. Hence we wouldn’t recommend this.
- Or you could transfer your assets including your house into a Family Protection Trust. This allows you to have total control over your estate.
Get in touch today and Jonathan will talk you through in detail the options you have, as well as suggesting services that can support you.
Book a free consultation