Can I avoid selling my home to pay for nursing home fees?
How can I avoid paying nursing home fees?
Yes you can avoid selling your home to pay for care. All it takes is some planning and good advice which Inheritance Solutions UK can provide you with. Often families believe that by gifting their property to loved ones it will protect their home. This is not the case and can leave you open to big risks for example, the people you gift the property to may:
- Get divorced
- Become bankrupted
- Die before you decide to sell the property
- Have their own care issues
In any of these cases by giving your property to one or more people, they become the owners. The property forms part of their estate and if they have claims against their estate the property is therefore under threat. Also this means that you cannot sell your house because it no longer belongs to you. The new owners would need to be the ones who agree to sell it and decide what to do with the capital realised.
How does a Trust help to avoid nursing home costs?
It is always possible to avoid paying care home fees, as long as the necessary protection plan has been implemented prior to care being required. Placing property into a Trust means that it will become a protected asset, that cannot be used to cover care home costs. The major advantage of transferring property into Trust as opposed to transferring it to an individual is that the Settlor (person placing property into Trust) is able to retain control as to how those assets are used. As the property is placed into Trust instead of transferred to an individual, it means that there is no Capital Gains Tax (CGT) liability for the beneficiaries. A long term benefit is that Trustees will not need to go through the expensive and time consuming process of Probate in order to sell the property or transfer it.
What other benefits does setting up a Trust provide?
The Trust also brings multiple benefits to the next generation. An example of this would be that although the Trust can be used in whatever way the chosen beneficiaries require, it can be set up in such a way that in does not form part of their own estate. This means that it does not add to their own estate for the issues around Inheritance Tax, issues of divorce or any third parties. The aim of a Trust like this is to give you, the Settlor, complete flexibility over how you use it and maintain it. Furthermore it will ensure that your chosen beneficiaries have your estate protected for them and only them. This type of planning is often referred to as ‘blood line planning’.
How can Inheritance Solutions UK help me avoid selling my home to pay for nursing home fees?
Here at Inheritance Solutions UK we specialise in protecting your assets. The aim is to enable you to keep control and manage your assets in a way that is flexible, so if your needs change you are still protected. It is possible to avoid having to sell your home as long as you have set things up before care is required. There is no minimum time that needs to pass for the estate to be protected. However, if care is required in the very near future the sooner you take steps to protect your property, the better. To see how we can help read Protect your Home from long term care or give us a call on free phone 0800 028 5119.