How to protect your property in old age

We have an ageing population and, while it’s obviously good news that people are living longer, with it come some major problems.

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It is currently estimated that one in four people over the age of 60 years will end their days in care and this will continue to rise as we live longer due to better and better healthcare. We are not so good at curing illnesses, but we are extremely good at managing them. We do not die of the same things we used to, so we live longer.

Care home fees can pose a threat to your property

When you consider the fact that the threshold for council support with care home fees is having assets of £32,750 or less, it can eat away at your finances extremely fast.

Worryingly, your house is classed as one of your assets and can be taken from you to cover care costs.

That can be a problem for your loved ones too. The demise of final salary pension schemes means many people are now relying on their parents’ estate to provide for them in later life.

Put your house in a trust to protect it

For the reasons above, it’s important to take precautions to cover yourself in case you do need care.

Tony Marchi, principal at ILAWS, says: “This is a big problem. If you look at the value of any person’s home, there probably isn’t much under £100,000. So, it’s likely to be liable for your care home costs.”

Fortunately, there are things you can do to stop your home from being taken such as Protected Property Trusts and Transfers.

What are Protected Property Trusts and Transfers?

A Protected Property Trust is ideal for couples who own their own home. Putting your house in a trust safeguards it. The benefit of a property trust is that if one of the couple dies, then the survivor can continue to live in the house until they die.

A trust is a legal tool you can use so that the property owner is different from the person who gets the benefit of the trust property. So, for example, if a husband and wife move their home into a trust then they are the trustees (meaning that the trust owns the home now, but the husband and wife own the trust). Should either or both go into care, the property cannot be touched as it is not legally owned by them.

A Transfer 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’.

Don’t leave it until it’s too late

Both of these things are easy for ILAWS to set up, but time is of the essence. You can’t do it after you go into care.

Tony adds:

“We get phone calls every week from clients who have seen our ads and their parents are going into care. They say, ‘I’ve been following you for years, my father’s now going into care, what can we do?’ By that time there’s nothing we can do. Preparation is everything.”

Some may worry about the cost of the processes but that would be a false economy when you consider what you stand to lose.

Tony says: “You’re effectively taking out an insurance policy on your home, so that it gets passed on to your children.”

For those who fear getting lost in a world of legal jargon, the team at ILAWS are experts in explaining everything in clear terms so you know exactly what you are signing up to.

Protecting your assets is the focus of the business, so it has a high level of expertise and experience in what clients’ concerns are. There are clear explainers on its website, which detail what you can expect from the process and why it’s important for you to have these protections.

ILAWS also has limited time deals on Power of Attorney and wills. Setting up a POA costs £199 (plus £85 court and registration fees) while a will is just £48.

So don’t be caught out. Now’s the time to act.

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Speak to ILAWS about the legal protections you need for your home.