Protecting your home from care costsSmart Will
We all get old. It’s an unavoidable part of life – people age and can often develop illnesses that can be challenging to overcome. To deal with the fact that age can bring it with a selection of issues, a lot of people choose to go into care homes.
The only problem with this course of action is that you’re going to find that care homes can cost a lot of money. Many find that they have to put their house up for sale to try and providing funding for the stay of a relative or parent. We’re going to be taking a look at how you can keep your home safe from care costs.
An Example Situation
To understand a typical situation where someone might have to pay for all the costs for their care homes. If two people own their property and have kids, then their estate will pass onto their children when they both die.
However, imagine that someone dies. One partner passes away, and then the other partner starts to rapidly deteriorate, requiring them to be put into a care home. The costs for this stay requires them to sell their house to fund it. When they eventually pass away, they have nothing in the way of inheritance to leave to their children.
What Solutions Are Available?
Thankfully, there are a couple of different solutions that are available to help you protect your home from being used exclusively as care costs.
First of all, you can create a trust in the house, which equates to 50% of its value. If the two people who owned the property decided that the best course of action was to split the tenancy and become tenants in common, then they would own 50% of the property each.
What this does is prevent the share of the property from being passed onto the survivors of the marriage at the end of one person’s life. The surviving partner will only own their half share, which protects the other from being used in care home costs. One partner can hold their shares on trust for their inheritance, and only the other half can be used. It means that you’re giving someone something even if they outlive a partner or if their health deteriorates.
Overall, protecting your house from care home fees isn’t always the most straightforward course of action, but it can be done. You have to make sure that you are putting acceptable measures in place to protect the assets that matter the most to you. Being able to leave something for your kids is a goal for most parents, but a lot of people can’t do it because they find that they have to pay for care home fees. You have to try and protect what matters most, and in some cases this will involve things like investing in a trust which can help to protect a certain percentage of the property. You need to take into consideration that there are many ways to protect your home, with this just being one of them.