Protect your home from some Nursing Home Fees with a Severance of Tenancy
By acting now, you could secure your future
When we make a Will, we usually leave everything to the survivor
and then to our children. It may come as a surprise to know
that your children could end up with very little or even nothing
at all.
This may happen if one or both of you need residential care.
If you have assets over certain limits you will be expected
to meet all your own costs and these can be from around £300
to £700 per week or more.
Nursing Home Fees
When someone goes into residential care they are 'means tested'.
All assets are taken into account, even the family home! You
need to pay for your own care costs until you are down to your
last few thousand, which includes the value of your home.
However, you can protect a significant part of the family home
if you act now! To wait and not take action until just before
requiring care may be seen to be depriving yourself of assets.
In this instance, the authorities have the power to ignore your
action and declare the asset yours. It is important that you
act as soon as possible, while you are fit and well.
Severance of Tenancy
Most couples own their home as 'Joint Tenants'. This means
that if one joint owner dies the survivor would own the total
value outright irrespective of what might be written in a Will.
This means that the whole value would be means tested.
The alternative is a 'Tenancy in Common'. This means that each
party owns a share of the property and can deal with it as they
wish. If one partner needed residential care, only their share
of the property would be taken into account, therefore, preserving
the share of the other partner.
The difference with this arrangement is that your children
would be guaranteed to inherit at least some of the value of
your home.
Remarriage
This arrangement will also protect your share of the family
home if your partner were to later remarry.
Update your Will
A Property Trust in your Will would guarantee a right of residency
but would not allow your share of the home to be passed to anyone
other than your children.
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