House Trusts
Most people want to leave everything to their family when they die but worry that they will 'lose their home’ if they go into a nursing or residential home because the Department for Works and Pensions or Local Authority (“LA”) will insist that the house is sold to pay the fees.
The DWP or LA have no power to sell your house. If you move into a home and it is unlikely that you will ever return to your house to live and if there is no one else living in the house, then the LA will expect you to sell your home to pay the fees. This will only be the case if you have insufficient income or capital (apart from your property)
We offer advice and assistance in this area, attempting to safeguard your property but balancing this with the need to protect you sufficiently during your lifetime.
Essentially, we would explore one of the following options:-
- Deed of gift giving the house to the family (Average legal costs of a simple gift £250 plus VAT and land registry fees)
- Deed of Gift to family who then give you a lease (Average legal costs £400 plus VAT and land registry fees)
- Placing the house into a trust so that you own the house during your lifetime but it passes to your family on your death. This offers the most protection and would be the recommended option in almost every case (Average legal costs £550 plus VAT and land registry fees)
We will discuss the potential risks and advantages of your preferred option with you in detail, so that you are fully aware of the consequences before proceeding.
Final point to note:-
Although the Government has announced its intention to consider abolishing means testing for care home fees, there is no guarantee that this will happen, as it will considerably increase government expenditure. If you were to delay taking action until the Government decides whether or not to abandon means testing, your health may deteriorate in the meantime and any transfer of the home may not be effective
Contact us on one of the following numbers for further information:-
Middlesbrough 01642 230700
Ingleby Barwick 01642 754050
Coulby Newham 01642 233980
