In our increasingly ageing population, it is difficult to avoid the notion that many of us will end up requiring care in our later years. However many people still fail to consider how the need for such care will impact our savings, our investments and even our home.
At Linder Myers we can help to protect your assets from being used towards care home fees through the creation of a flexible life interest trust in your Will.
In cases where it has been determined that the NHS does not have to fully fund the cost of care, then a resident will have to pay their own care fees.
If the resident has no capital or it is less than the threshold (which is relatively low and fixed each year) then their capital is protected.
However, often the assessable capital will need to be means tested, and where it is above the threshold the resident will be left having to pay their own fees which can be very expensive.
If one partner were to die and, at the date of their death or shortly afterwards, the survivor required long term care, then it would be better not to leave all of their estate outright to the survivor under their Will.
If this is done, it means that their assets automatically will become available to pay for their long term care of the survivor. This means that assets cannot be passed onto children.
This can be avoided by including a life interest trust in the Will. In this situation, the capital value of the trust fund will not belong outright to the survivor and it will not, therefore, be taken into consideration for the assessment of long term care fees. It is also unlikely that the income from the trust will be assessable for the payment of fees.
Where assets are held in joint names (particularly houses) then particular attention is needed because these assets may not pass under the Will of the first to die. However, by careful planning, a person’s share of jointly owned assets can also pass into the Will trust.
We have a dedicated team of lawyers specialising in drafting life interest trusts. Our team have the experience and expertise that will provide you with peace of mind and confidence that you will receive the advice and assistance to suit your needs. When creating a life interest trust care needs to be taken and your overall circumstances should be considered. It is vital that specialist advice is obtained to ensure that the correct action is taken.
We have several solicitors dealing solely with trusts and estates work including a number who are members of the Society of Trust and Estate Practitioners (STEP) and also Solicitors for the Elderly (SFE).