How do I protect my property against care home fees?
Natalie Biggin | Partner
The big concern for many people as they grow older is how to protect their property against care home fees.
The first point to make is that you should not do anything to deliberately deprive the asset and therefore avoid care home fees.
Having said this, a legal way to safeguard 50% of the capital against funding care is by property protection/life interest Wills.
On death of the first partner or spouse, the deceased share of the house is left to certain beneficiaries (e.g. children) in a Trust, at the same time specifically allowing the surviving partner or spouse to continue living in the house rent free for the rest of their life. This is known as giving the surviving spouse a lifetime right of occupation.
The beneficiaries of the first partner or spouse to die will inherit that share on the death of the second person.
If the surviving partner/spouse in their lifetime needs to go into a care home and because they only legally own 50% of the property (other 50% is in trust) it is only 50% of the proceeds that will be used to fund the care. This means that 50% of the capital is safeguarded for future beneficiaries.
Should you require further information please contact a member of the Wills and Probate team here.
