Why you should act now if you don’t want to lose your home to care fees

If you could do one thing to safeguard your property, would you do it? Very few people would answer no to that question. But many are unaware of both the risk to their home and the urgency in taking steps to protect it.

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The chance of you ending up in care is constantly rising. 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. It is predicted that this will rise to one in three by 2030.

If that happens, the consequences can be financially devastating. The cost of care can be up to £75,000 annually. When you consider the threshold for council support with fees is set at just £32,750, with your home included as one of your assets, the threat is clear. You could potentially lose your property.

Fortunately, there are measures you can take to prevent your property from being counted as an asset.

Protected Property Trusts and Transfers

One step you can take is to put your home into a Protected Property Trust (PPT). A PPT places your home in a trust which safeguards your property.

Another possible measure is a Transfer, which 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. It simply allows you to remain in your own home and prevent it from being counted as ‘an asset’.

But time is of the essence. These measures cannot be taken after you go into care.

Tony Marchi, principal at ILAWS, said: “So many people come to us when it’s too late. We’ve even had people saying they will pay anything to sort it out, but once someone has gone into care there’s nothing we can do.”

Act now to avoid rising costs

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Another issue is that the cost of implementing these measures will only rise over time.

Tony said: “Our prices are extremely competitive for what we do. It’s less than a lot of people imagine it will be. But it is only going to go up. Registration fees will rise over time as will basic costs. There is no better time than now to do this.”

There is also the danger of the government enacting laws that change how your assets are determined for care costs. However, the good news on that front is that the law could not work retrospectively. So, if you already have a Trust or Transfer in place, it will still prevent your home from being counted as an asset. The law would only apply to Trust or Transfers arranged after it is passed.

At the end of the day, you have nothing to lose.

Tony added: “If you take out a Protected Property Trust and you don’t need it then you’ve won because you’re covered and you don’t lose your home. If you do it and you don’t need it then you’ve won too, because you’re not going into care.

“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 you can trust with your estate

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

The firm’s services also include Power of Attorney which is vital to ensuring your wishes are followed if you find yourself incapacitated.

ILAWS will arrange POA for the low price of £195 + VAT = £234 (plus £87 court and registration fees) when they can cost as much as £600 elsewhere. Wills can be arranged for just £50 plus VAT = £60.

So don’t delay about getting your legal affairs in order and contact ILAWS today. Remember, it’s never too early but it can be too late.