Property Trusts Wills - Protects your Home against Nursing Home Fees
Most of us spend twenty five years or more buying our homes, what cruel fate it is then, to lose it, because we have to spend a couple of years in a Nursing Home later in life! Most people do not realise they can protect their homes against Nursing Home fees with a properly constructed Will.
The Problem
Generally people have simple Wills, leaving everything to each other and then to their children or other named beneficiaries. The trouble is, if either of you pass away and the survivor should go into a Nursing Home, then your home may be sold to pay for their fees leaving your children or other beneficiaries with little or no inheritance. Each year there are literally thousands of people who are forced to sell their homes to pay for Nursing Home fees!
The Solution
You can make Wills, or change your existing Wills, to include clauses which leave your share in your home to your children or other beneficiaries (in Trust) and leave your surviving spouse the right to remain in the property during the remainder of their lifetime. This means if your spouse were to go into care after your death then you will have protected your half of the house against Nursing Home fees, as Social Services will only be able to take the remaining half into account when completing their financial assessment. This also protects your share of your home should your surviving spouse remarry after your death.
As with all things in life there are barriers which must be overcome before you can have this protection. But with this, there are only two, both of which are easily dealt with.
1. You can only do this whilst you are both alive – after first death the opportunity is gone. Since most of us do not know the date we are to depart this fair earth, you should deal with it as soon as possible, and then relax in the knowledge your children or other beneficiaries, will receive your share in the house, you spent most of your working life purchasing.
2. It costs money – not a great deal of money – not even the cost of one week in a care home. But nevertheless, it does cost money and listed here are the reasons why.
a. We will probably have to make changes in the way you own your property. With the Land Registry if your property is registered or we will need to create a “Declaration of Trust” to place with your Deeds if your property is not registered.
b. The consultant who deals with this on your behalf will need to be paid for the time it takes to complete all the forms, supervise the writing or rewriting of your documents and take care of everything else on your behalf.
c. To protect your surviving spouse we will need to include clauses in each of your Wills, leaving your half of your home to your children or other beneficiaries. Furthermore, we will include residential rights clauses in both Wills to allow the survivor to live in the property for as long as they wish. It will also give them permission to sell the property and purchase another and invest any surplus capital for their benefit. This fully protects your half of your home against Nursing Home fees and also provides complete security for your surviving spouse.
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c. To protect your surviving spouse we will need to include clauses in each of your Wills, leaving your half of your home to your children or other beneficiaries. Furthermore, we will include residential rights clauses in both Wills to allow the survivor to live in the property for as long as they wish. It will also give them permission to sell the property and purchase another and invest any surplus capital for their benefit. This fully protects your half of your home against Nursing Home fees and also provides complete security for your surviving spouse.
d. The final reason for the extra cost is that every year for the remainder of your lives, the company will take out an insurance policy. This is to provide protection for your next of kin in the unlikely event there is a problem.
How much will it Cost?
All estates are different and your investment will vary depending on the construction of your existing Will and how your property is owned, but if you or your spouse were to spend just one week in a Nursing Home it will cost you a lot more. To advise you better, we offer a free no obligation 20-minute consultation at your own home or here at the offices in Yate. We will advise you of the likely fee before starting any work and will do nothing without your consent. If you wish, you can spread the payment over ten interest free months. It will cost you nothing to find out how to protect your home, but it could cost your children or other beneficiaries everything if you leave it too late.
