There is a saying that ‘All that glitters is not gold’ and the new proposals put forward by Jeremy Hunt yesterday appear to fall into this category. The Government is proposing to introduce legislation by 2017 which will cap the total paid by any person for care fees at £75000. There will also be a lift in the threshold in the means test to £123000 before full liability to meet care fees is faced.
“Wonderful” you may say but hang on a minute what is there in the small ptint?
For anyone with Property and Assets worth £150000 they will pay £67399 towards their care costs (45% of Assets)
For anyone with Property and Assets worth £200000 thet will pay £75000 towards their care costs (38% of Assets)
For anyone with Property and Assets worth £250000 they will pay £75000 towards their care costs (30% of Assets)
Bear in mind also that care costs do not include accommodation costs of up to another £12500 per annum.
When you consider that the average house price in the UK is £249,958 (Land Registry England and Wales September 2012)the proposals will only assist approximately 10% of people needing care in the future.
Once again it is vital to protect your main asset by means of either a Lifetime Property Protection Trust or by Property Protection Trust Wills. These are perfectly legal methods of ensuring your family benefits from the inheritance of your property. The use of a Will combined with either of these Trusts will keep your main asset from being sold whilst you are in care . In the first instance 100% of the property is guaranteed to reach your loved ones and in the second 50% is guaranteed at least to reach them.
It is estimated that over 2 milllion people will die before the new government proposals come into force.
Protct your assets now.