Don’t lose your property over care home fees

As our population ages, care home costs are becoming an increasing issue in Scotland. A recent report by the Scottish Government found we have an estimated one million residents over the age of 65 with that set to rise to 1.4m – 25% of the population – by 2040.

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In many ways, it’s a good news story but there are some considerable drawbacks. That same report found that people aged over 70 live with an average of three chronic health conditions.

On top of that, according to the Office for National Statistics, the ‘oldest old’, who have a substantial risk of requiring long-term care, are the fastest growing age group in the UK and it is currently estimated that one in four people over the age of 60 will end their days in care.

Tony Marchi, principal at ILAWS, said: “We all hope to get to 100 without a sick day in our life but that just won’t happen. If you have two couples out for dinner then the unfortunate fact is one of them will likely end up in care.”

Trusts and Transfers protect your property from care home costs in Scotland

Perhaps what’s most worrying about that is the devastating effect it can have on your finances. Staying in a care home can cost as much as £75,000 a year in Scotland. The threshold for council support with care home fees is having assets of £32,750 or less and worryingly your house can count towards that. That means it can be taken from you to cover costs.

The simple fact is that for many there is a risk of losing much of your estate in your older age if you are taken into care.

However, the good news is there are legal steps such as a Protected Property Trust (PPT) or Transfer that can mitigate that risk to your assets. A PPT places your home in a trust which safeguards your property. A Transfer involves legally transferring ownership of your home to someone, such as your child. It is NOT possible for them to sell while you are in the property.

However, time is of the essence as PPTs and Transfers cannot be arranged after you’ve gone into care.

No reason to fear cost of Protected Property Trust

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Some may worry about the cost but setting up a PPT is not overly expensive. That’s particularly the case when you consider that not having one could end up costing you far, far more if you were to lose your home.

Don’t be put off with what you might have heard elsewhere about the costs. ILAWS is extremely good value for money.

ILAWS offers a no-obligation, free consultation. If you decide it’s not for you, then it won’t cost you a penny.

Tony added: “You can think of it as an insurance policy on your home. You want to make sure you can pass your property on to your children and through no fault of your own you can end up losing it. Having a PPT can prevent that.”

The firm’s services also include Power of Attorney (POA) which is vital to ensuring your wishes are followed if you find yourself incapacitated. Without it, your spouse, son or daughter cannot make decisions on your behalf.

ILAWS will arrange POA for the low price of £195 + VAT = £234 (plus £85 court and registration fees) when they can cost as much as £600 or more elsewhere. On top of this, Wills can be arranged for just £50 plus VAT, making £60 in total.

So, if you want to make sure your assets are fully protected whatever happens, act now and contact ILAWS Scotland. It’s never too early, but it can be too late.