Estate planning firm ILAWS shares some available options to help protect your financial assets in the future
As we get older, we begin to realise that we can’t do things as easily and independently as we once did, and have to rely more on others for help.
And with time, you may also find that you need round-the-clock care - the kind you can only properly receive in a care home surrounded by dedicated staff.
Even more so as debilitating conditions like Parkinson’s become increasingly prevalent, with
153,000 people already living with Parkinson's in the UK.
However, if you do find yourself moving to a care home in later life, there’s an important question as to how to protect your financial assets from being lost to cover any fees.
If you have capital assets worth £29,750 or more, you are required to meet your own care costs in full, which currently average over £50,000 per year. This means that if you go into care, and your pension and savings do not sufficiently cover the cost of fees, the local authority could take your home.
In England, there are plans now in place to cap the amount taken from an individual at £86,000, but there is currently no such cap in Scotland.
And whilst it is illegal to deliberately stop the local authority from taking money to pay for care home fees, there are legitimate options available to help protect yourself and your assets, including
setting up a trust.
By setting up a trust, you can maintain control over your financial assets, including your home, even if you move into a care home in later life.
A trust means that the property owner is different from the person who gets the benefit of the trust property. Therefore, essentially, the owner becomes a ‘trustee’ and retains both legal ownership of the property and control.
There are ways to keep control of your assets should you need to go into a care home (Image: Getty Images)
For example, if a husband and wife move their home - or part of their home - into a trust, they become ‘trustees’. Should one or both of them go into care, the property cannot be touched as it is not legally owned by them, but is owned by the trust.
Nothing can affect the home while it is protected by the trust - and when the couple passes away, their children or loved ones will inherit everything in the trust, such as the family home.
ILAWS can help you take action now and plan for whatever the future holds (Image: Getty Images)
With more than 30 years of experience,
ILAWS Scotland is the estate planning professionals of choice for many residents across the country.
The experienced, friendly team can talk you through available options, help you start a trust, and guide you throughout the process, making sure everything is explained clearly along the way.
Whatever course of action you decide to pursue, ILAWS will help work out all the necessary costs depending on your family situation, your wishes, the value of your home, and the Proprietorship Section of your Title Deeds.
Tony Marchi at ILAWS Scotland, said: “There is no one-size-fits-all solution, but we can offer options - such as a trust - to prevent the sale of the house. One of the favourite products with clients is a protected property trust.
“Even if you have a mortgage with the house, or equity release, you can still protect your home. Depending on your circumstances, you don’t necessarily have to be mortgage free to be protected either.
“There are some things in life that we just need to do, like having car or home insurance. None of us enjoy paying for insurance policies, but we know it is the sensible thing to do. It gives us peace of mind, as we know that if anything were to happen, we would be covered.
“When it comes to trusts, the cost varies from property to property, depending upon value and individual circumstances. But it is much less expensive than most people think.”
ILAWS offers free, no obligation consultations to talk you through the options available to you, including setting up a trust. To find out more, visit www.ilawsscotland.co.uk
ILAWS is a will writing and asset protection firm. It is not a conveyancing solicitors, however, it has long-standing associations with such firms and can refer a client to them if you require this type of work to be undertaken.
