Care home fees – a prospect faced by many

Have you considered putting your home into a lifetime trust to protect its value from being lost to either the payment of Inheritance Tax or care home fees?

This is a common concern, but before action is taken there are important consequences to be considered.

Here are just a few of the issues:

• In placing an asset in Trust you give away power of choice for the future. Not only in relation to moving home, but also in connection with the choice and standard of care home that you wish to live in.
• Any such giving away, if deemed deliberate deprivation, can be set aside.
• There are inevitably costs of creating, implementing and running any such Trust.
• There may also be ongoing tax implications.
• Family circumstances can change, for example if your child trustee dies and authority is left with in-laws.
• In considering such possibility you must also consider the need to pay a market rent to preserve benefit gained.

In short, it is essential to take professional advice when considering any such decision in relation to your home. Concerns can often be alleviated by the updating of your Will and preparation of detailed Lasting Powers of Attorney with Letters of Wishes in support.

If you would like to find out more about Wills and Trusts please contact me.

Judy Dyke
Director & Head of Private Client

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