Long Term Care Cost Planning &
Life Rented Property Legacy Wills
When people make a Will, they usually leave everything to the survivor and then to their children. It may come as a surprise to know that your children could end up with very little or even nothing at all. This may happen if one or both of you need residential care.
Setting up a Life Rented Property Legacy Will can allow clients to protect their property from being taken under the Community Care Act of 1990.
Last year around 70,000 homes (200 every day) were taken by Councils throughout the UK, to recover Long Term Care costs.
If you have total assets (your home, contents, money, investments etc) in excess of around £22,500 and go into a nursing home or need long term care, then you are liable for the care costs. This can cost many hundreds of pounds a month. When someone goes into residential care they are ‘means tested’. All assets are taken into account, even the family home! You need to pay for your own care costs until you are down to your last few thousand pounds, which includes the value of your home. Having exhausted any money available, the Council would then look to recover its costs by selling the home.
The cost of achieving this satisfaction is quite low in comparison to the cost of losing property to pay for the costs of nursing homes and/or long term care.
If you have assets over certain limits you will be expected to meet your own residential costs (only personal nursing care is free up to £215/week) and these can be from around £500 to £900 per week or more.
However, you can protect a significant part of the family home if you act early enough. To wait and not take action until just before requiring care may be seen to be depriving yourself of assets. In this instance, the authorities have the power to ignore your action and declare the asset yours. It is important that you act as soon as possible, while you are fit and well.
We can arrange a suitable legal document that, when co-ordinated with your Will, can ensure that at least 50% of your total assets remain in your family should you require the care mentioned.
Your will can also protect your share of the family home if your partner were to later remarry. In other words, you can ensure that what you leave your children is exactly what they?ll get rather than your new partner’s spouse getting your share.
If you have children from previous relationships this will can make sure they receive some assets from their parent.