If you need long term care, your home may be at risk

• Every year thousands of elderly people go into permanent residential care
• Almost 50% of people over the age of 65 have a disabling condition requiring long term care
• Every year, over 140,000 people will suffer a stroke
• Over 500,000 people in Britain suffer from Alzheimer's disease

Residential care costs vary - in some areas, these can be in excess of £25,000 per year!

Within the terms of the Community Care Act 1990, which came into force in April 1993, Local Authorities will not contribute towards the cost of residential care, where the value of the person's capital/assets, including their home, exceeds £18,500 (£16,000 prior to 2001).

• Local Authorities control funding for care
• All individuals who apply to their Local Authority for help with care costs are means tested

The problem:

• Many people will lose their homes in order to pay the care fees
• The Local Authority has the power to place a charge on the property to recover the cost of residential care fees
• Individuals who have been thrifty and saved for many years are now being penalised
• Assets that should have passed to children ('wealth cascading down') may instead pass to the Local Authority

The first solution:

Legal Systems and their lawyers have, in consultation with a leading barrister, devised a specialist trust scheme which enables home owners to pass their property, via a trust, to their children whilst retaining the owner's right to live in the property.

Some key benefits of the trust scheme (entitled "Property Care Plan") are:

• Property is secured and retained by the family
• The original owner continues to reside in the property
• The property can, if required, be sold to purchase another

Peace of mind:

• The "Property Care Plan" trust deeds are prepared by specialist lawyers
• The cost of the "Property Care Plan" -including all lawyers' fees, can be less than one month's care bill (one off payment - nothing more to pay)
• At all times, best advice to clients is the main priority. Clients receive an information pack and will be furnished with all relevant information enabling them to make an informed decision regarding the "Property Care Plan"

In addition, benefits are:

• Upon the death of the original owner(s) a Grant of Probate is not required on the property element of the estate. This provides a saving on probate fees and as the property can be sold immediately, it avoids the delays that can occur before a Grant is issued
• As outside of a Will, privacy is maintained, your wealth does not become public knowledge

Property Care Plan Flowchart:

The Plan has complete flexibility with original owners retaining possession of the property throughout the trust. The Plan cannot be used if a mortgage applies to the property. The plan does not assist any inheritance tax planning.

The second solution:

'The Protextive Trust Will' - see details under 'WILLS'.

This format can also assist families in their desire to protect their assets from the cost of funding residential care.

If you would like us to send you more information, or would like to arrange a visit, click here.