Trusts to avoid care home fees
Can Trusts be used to avoid paying for care home fees?
Paying for care home fees can become a concern for many families, especially those who face losing their hard earned savings and investments to pay for nursing home care for elderly relatives. Having worked so hard to save, it can seem unfair that the money you have put aside to protect your family and invest in their future be used up for causes not chosen by you. Many of our clients ask us if there is a way to avoid paying care home fees, and fortunately with the right expert advice, Trusts can be set up to your advantage, to provide protection planning for your assets against paying any unforeseen care home fees in the future.
How do I set up a Trust so that I don't have to pay for care home costs?
It is possible to avoid paying care home fees, as long as the right protection Trust has been implemented prior to care being required. In order to set up a Trust you need to decide who you want your Trustees to be. It is also important to think about who you want to benefit from the Trust. All our Trusts are bespoke giving you complete flexibility as to how they work and what restrictions are placed on them. We will take time to go through your options so that you fully understand what is possible and ensure that you are happy with the way your Trust is set up. Our Trusts are flexible and adaptable. If you find that there are aspects of your Trust that you want to change you can. By placing your assets in Trust they no longer form part of your estate. This means that if care is required, your assets will not be calculated as part of means testing. By declaring assets in this way it enables you to continue to benefit from them but ensure that they are safeguarded for your loved ones. If you would like to talk to us about how a Trust can help protect your home give us a call on free phone 0800 028 5119.
Care costs can be a big burden - let us help you avoid them using Trusts
In the past, if someone went into care they were there for weeks and sometimes months. Now someone can require care for years and with the average cost of care being £35,000 per year it is easy to see how an estate can disappear.
Here at Inheritance Solutions UK we look at ways that you can keep control of your assets whilst also protecting them. One of the most effective ways to protect your assets is to make use of Trusts. Often people have some pre conceptions about Trusts, such as not being able to get access to the assets placed into them, but this is not the case. Below is a diagram that explains what a Trust is and how it works:
Although the Settlor is the one who establishes the trust and decides who the Trustees and Beneficiaries are, this does not prohibit them from taking on these roles themselves. This in turn means that they are able to maintain control over the Trust Fund as well as benefiting from it.
A simple illustration of a Trust:
Mr Smith gives Mr Evans his car to use. Mr Evans is able to enjoy the benefit of the car but he does not own it. This in turn means that if Mr Evans found himself in a position where his assets were in jeopardy, the car owned by Mr Smith could not be taken from Mr Evans as it is not his to take. In this example Mr Smith is the trustee and Mr Evans the beneficiary. Now if we scale this up so that Mr Evans owns a house, he places this in Trust and makes his sons the Trustees. He also makes himself a primary beneficiary. He is able to enjoy all the benefits of the house but he no longer owns it. Therefore if anyone were to attempt to take it away from him they would not be able to.
Trusts are used in every walk of life from education to the NHS and charities. Trusts are not loop holes that will suddenly be taken away as they are used throughout our society. Trusts have been used for hundreds of years and are recognised by the courts and the Inland Revenue.
Let Inheritance Solutions UK help you set up Trusts to avoid care home fees
If you are looking to use Trusts to avoid care home fees, or have heard that it is possible, but want to find out more, give Inheritance Solutions UK a call today. Our expert advisers will take the time to guide you through all your options, helping you to protect your hard earned assets and ensuring they will not be used to pay care home costs. Call us now on free phone 0800 028 5119.