If a person is taken into care then, under the Community Care Act 1990, the local council have the right by law to seize their home, put it up for sale and use the proceeds of sale to support their long-term care costs, and leaving only £23,500. Obviously, if this happens then it might mean that when they eventually die there could be very little of their estate left for their surviving family.
It is illegal to deliberately transfer your own property to relatives or trusts if your prime motive is to avoid paying long-term care costs, as there are rules about intentional deprivation of assets. However, it is not illegal for you and your partner to each make a provision in your Wills, that upon the first death, the deceased's half-share of the family assets and/or home, is left in trust for the surviving spouse who has a lifetime right to live in the property (i.e. a life interest), and then to you children or such other beneficiaries on their eventual death.
You will need to own your home as Tenants in Common. This is something that we can check for you by inspecting your title deeds and, if you do not, it is a straightforward and low cost process to sever any Joint Tenancy and convert to a Tenancy in Common and make the necessary application to the Land Registry to update their records.
Premier Solicitors' Protective Property Trust Will has been specially designed for this purpose, and so could protect significant sums of money that you have worked hard and saved hard for all of your life for the benefit of your children.
Learn more about Fixed Fee Trusts with our Trust FAQs.
Call us today on 01234 35 80 80 to speak to a member of our qualified team.