On average and based on recent findings approximately 200 houses were sold today in order to pay for Nursing Home or Care fees. This means that 200 families will not benefit from the prudence of their parents and will not inherit any part of their parents estate.
After working and saving for the major part of your life and investing in your major asset ,the family home,it appears so unfair to see it all have to be used in order to fund care fees when independant living is no longer an option. This often appears a double whammy when you have paid full contributions all of your working life into the National Health service and perhaps very rarely called upon it for any benefit.
If you have to go into care and you have assets that total more than £23250 (including the value of your home), you will have to fund your care in full. Under the Care Act 2014 which came into force in April 2015 the Government has enabled Local Authorities to lend families up to 70% of House values to fund the care costs. A care home could cost £500-£800 per week or more. The reality is that your children could end up with very little after such loans plus the interest thereon have been repaid after the parent’s death. Under the same Act a cap on care fees was indicated but this has now been postponed until 2020.
For married couples thankfully there are ways that guarantee tens of thousands of pounds can be retained by the ultimate beneficiaries of your estate. A legal trust arrangement within your Will is able to achieve such savings. It is essential however that the Wills containing the Trust are made whilst both owners of the Property are still alive.
If no action is taken until only one partner remains and owns the property outright then there is still another way of securing the whole property for loved ones and family but the options are fewer and need action immediately.
With tens and sometimes hundreds of thousands of pounds at stake it is vital that you seek advice and implement some action as soon as possible.
We at Lincolnwills can help you.