Protect for the future
PUBLISHED: 06:15 08 September 2014
A common concern in this day and age is the fear that your property may be sold to pay for nursing home fees.
A property protection will trust is a variety of will that is designed to protect your property against an assessment to long term care fees should you not qualify for NHS continuing care. Assuming the property is owned by a husband and wife, both should draft wills transferring their half share of the property into a trust in favour of the survivor. The survivor can then benefit or live in the house during his or her lifetime, and on their death the property would pass to the beneficiaries named in the will, normally children.
The value of the half share of the property in the property protection will trust is not taken into account for the purposes of financial assessment by the local authority as it is a trust asset. It is important to remember that the remaining half share of the property is a capital asset in the hands of the surviving spouse and is therefore vulnerable.
The trustees are the individuals who control the trust. The surviving spouse can be one of the trustees. Property protection will trusts are drafted in such a way as to ensure that the surviving trustees cannot be removed from the property unless he or she agrees.
There are no adverse inheritance tax consequences of setting up such a trust.
This is just one example of why drafting a will is so important when looking at the ownership of property.
Spire Solicitors; 01603 677077; www.spiresolicitors.co.uk