Did you know around 27% of people live in care homes for more than three years and the average cost is £823 per week?*
Property Protection Trusts
What is a Property Protection Trust?
A property protection trust is an affordable way to help ensure your loved ones inherit your share of the property.
Why do a Property Protection Trust?
Ensure your loved ones benefit from your lifetime of hard work.
Care home costs
Care home costs are rising rapidly in a recent Which study the average weekly cost of Nursing care in Scotland was £823 per week and residential care was £674 per week. At nearly £43k per year and over £35K respectively it only takes a few years for this debt to run into the hundreds of thousands of pounds.
If your partner is in care and you die then your share of the house is likely to be used to fund their long term care. With 27% of people live in a care home for longer than 3 years** your loved ones inheritance can be dramatically reduced or even lost to the state. This can be avoided by using a Property Protection Trust.
Remarriage
If you or your partner remarry after the other dies then there your share in the property may not go to your intended beneficiaries and may be lost to a family you do not know. Your half of the property can be ring-fenced and will go to your chosen beneficiaries.
How does it work?
To avoid this both partners can make a new Will including a property protection trust, this protects their share of their home for their beneficiaries. When the first partner dies their half of the property is protected in the Trust for their beneficiaries and cannot be used to fund care. The surviving partner has a lifetime interest in the property and can live in it for life, or sell it and buy another property.
Trustees are set up to control the Trust which is normally the surviving partner and at least one other person.
Example
Mr and Mrs X own their house in joint names.
It is important to them that their children inherit their home and that if one of them dies that they can live in the property for the rest of their life. They want piece of mind that if one of them ends up in long term care then half of the of the property will be preserved for the benefit of their children.
If Mr X dies first his share of the property goes into the property protection trust, whilst the remainder will be left to his wife. She has a right to occupy Mr X’s half share of the property together with the ability to move house. If Mrs X requires long term care Mr X share of the property cannot be used to pay for her care fees as it is contained within the property protection trust.
On Mrs X’s death, the property protection trust comes to an end and the half share of the house transferred (or the sale proceeds paid) to the children.
Did you know that the average weekly cost of care is £823?
Why a Property Protection Trust from McAllisters?
Free-Consultation in your own home
Clear transparent and honest guidance
Our partner solicitor will organise the property paperwork – Additional fees may apply**
Insured. We carry £2 Million of insurance
14 Day cooling off period
Chartered Trading Standards Institute
This firm complies with the ISPW code of practice.
*Source Which? and Age UK
**Additional Fees may apply