UK home owners should read this.
UK home owners should read this. You are worried that you may need nursing home care in the future, when your local authority may have the right to sell your home and use the proceeds to meet the costs of your care. Don't be, get a 'Protective Property Trust' in your Will that way your property cannot be taken by the local authority for care home fees. You will also need to look into 'Tenants in Common' if jointly owned.
The Protective Property Trust (also known as a Life Interest Trust) - a very useful addition to you Last Will - as long as you don't delay:
You may wish to include a Protective Property Trust in your Will if:
1) Your family contains children from previous relationships and you want to ensure fairness for them without disadvantaging your spouse or partner. Or you may think it likely that your spouse will remarry after your death, and wish to protect the interests of your children against any future relationship, without harming your spouses' interests.
2) You and your spouse or partner are concerned that you will be one of around 70,000 people who lose their inheritance to the Local Council through Community Care Tax - the most vicious tax of all which can wipe out all but the last £12,500 of your estate.
· You do not wish to leave your share of your property to your Partner but wish to give them the right to live in the property for the rest of their lives, before the property passes to your children.
A Protective Property Trust in your Will can contain a provision that upon your death, your share of the property is put in trust allowing your partner to continue to live in the property for his/her lifetime, but upon his/her death, to be given to your children or other preferred beneficiaries. In this way, you can make provision for your partner, whilst protecting your share of the property for your children.
· You are worried that you may need nursing home care in the future, when your local authority may have the right to sell your home and use the proceeds to meet the costs of your care. You cannot transfer your property to relatives to avoid paying nursing home fees, without falling foul of the law, but you can include a Protective Property Trust in your Will, containing instructions that upon the death of you or your spouse, that half share of the property is put in trust for your children, instead of passing direct to the surviving spouse. In this way, the half share of the property that has been put in trust is protected and the surviving spouse may continue to live in the property. That half share is sheltered from your local Councils Community Care Tax, levied on those needing long term care who have assets over £12,500. On the death of the surviving spouse or partner, the half share of the property owned by the trust can be given to the children.
How your property is owned
Most homes are held as Joint Tenants:
Joint tenancy - is where the parties own a property together and upon the death of one person the property automatically passes to the survivor whatever the will says.
Tenancy in common - this is where each person owns part of the property in their own right and can leave their share to whoever they like. This allows more flexible planning for Asset Protection (such as against Community Care Tax) and Inheritance Tax.
The Protective Property Trust (also known as a Life Interest Trust) - a very useful addition to you Last Will - as long as you don't delay:
You may wish to include a Protective Property Trust in your Will if:
1) Your family contains children from previous relationships and you want to ensure fairness for them without disadvantaging your spouse or partner. Or you may think it likely that your spouse will remarry after your death, and wish to protect the interests of your children against any future relationship, without harming your spouses' interests.
2) You and your spouse or partner are concerned that you will be one of around 70,000 people who lose their inheritance to the Local Council through Community Care Tax - the most vicious tax of all which can wipe out all but the last £12,500 of your estate.
· You do not wish to leave your share of your property to your Partner but wish to give them the right to live in the property for the rest of their lives, before the property passes to your children.
A Protective Property Trust in your Will can contain a provision that upon your death, your share of the property is put in trust allowing your partner to continue to live in the property for his/her lifetime, but upon his/her death, to be given to your children or other preferred beneficiaries. In this way, you can make provision for your partner, whilst protecting your share of the property for your children.
· You are worried that you may need nursing home care in the future, when your local authority may have the right to sell your home and use the proceeds to meet the costs of your care. You cannot transfer your property to relatives to avoid paying nursing home fees, without falling foul of the law, but you can include a Protective Property Trust in your Will, containing instructions that upon the death of you or your spouse, that half share of the property is put in trust for your children, instead of passing direct to the surviving spouse. In this way, the half share of the property that has been put in trust is protected and the surviving spouse may continue to live in the property. That half share is sheltered from your local Councils Community Care Tax, levied on those needing long term care who have assets over £12,500. On the death of the surviving spouse or partner, the half share of the property owned by the trust can be given to the children.
How your property is owned
Most homes are held as Joint Tenants:
Joint tenancy - is where the parties own a property together and upon the death of one person the property automatically passes to the survivor whatever the will says.
Tenancy in common - this is where each person owns part of the property in their own right and can leave their share to whoever they like. This allows more flexible planning for Asset Protection (such as against Community Care Tax) and Inheritance Tax.
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