Can I protect my house from care home fees?
Yes, you can by using a Trust to ring-fence your assets.
Does the Government think you should use the equity in your home to pay for end-of-life or long-term care?
Well, according to Thurrock MP and former social care minister, Jackie Doyle-Price…
Yes, you should!
This is a question I get asked regularly. Without forward planning, this is a very real problem.
But, there is a solution.
Before I give you the solution, let’s look at what Doyle-Price said in a video recorded at the party conference.
“Homes should not be seen as assets for parents to pass to their children”
She then continued…
“The reality is that the taxpayer shouldn’t necessarily be propping up people to keep their property and hand it on to their children when they’re generating massive care needs”
There’s no ambiguity there, then.
Let me tell you how this works.
If you’re unlucky enough to be one of the two-in-three people to end their days in a care home, you will be subjected to a means test in accordance with the Care Act 2014.
Your house will be valued first, and if found to be worth more than £23,500, you will be expected to pay for your care needs in full. If you don’t have the cash available to pay your fees, the home will have a second charge added to it and auctioned off to liquidate the asset.
How much is this second charge likely to be?
Let’s look at the statistics. The average time spent in a care home prior to death is 26 months*
Now let’s look at fees. Seeing as we are based in Essex, we took a look at a nearby care home; Colne View, operated by Care UK. Their fees for nursing care are from a mind-boggling £1,534** per week.
So 26 months = 104 weeks x 1,534 = £159,536. And, don’t forget, this is per person, so if both homeowners end up in a care home, your children are likely to be deprived of roughly £320,000 of your hard-earned assets.
By writing a special Will to include a Protective Property Trust (PPT). We’ll show you how it works in this post.
What’s the cost of a PPT?
Less than one week’s care-home fees!