The product most commonly sold for care costs is a Protective Property Trust (PPT) and generally suits a couple that are property-rich and cash-poor.
A couple would set up 2 Wills that include the PPT clauses, and change the ownership of their home from joint tenants to tenants in common. So when (say) Mr. dies first, his half of the house goes into his Will Trust, and allows his widow to use his share for her lifetime but never own it. So if the widow goes into care next, the half in his Will Trust cannot be taken into account for her care costs because she does not own it. So PPT Wills protect half the house after the first death of a couple, but does nothing to protect the surviving widows share.
Don’t forget that if the widow does go into care, the house must lie empty until she dies which is probably not what the family expected, nor is the fact that only half the house is protected. It works as a valid solution but the family should also consider other options before making a final decision, which can include protecting all of the house for the beneficiaries if that is what they want to do, and we can help with this.
If neither of the couple die but the wife goes into a care home, the house is classed as a disregarded asset for care home fees whilst the husband still lives in the house. The trouble is (and it happens) that if the husband dies next and leaves his share of the house to his wife in the care home, the whole value of the house could be taken for her care home fees. It would just depend how long she spent in the care home.
The risk also exists that both Mr. & Mrs. go into care within a short space of each other, well before their PPT Wills would come into play, in which case the PPT Wills would not work at all.
With our help you can ensure your assets are both fully protected and only available to the loved ones you have chosen after you have gone. It is your choice. We are here to help so why not contact us here.
With the strategic use of Trusts, you can ensure that your children and grand children are able to benefit completely from your estate. Ordinary Wills have their place if your estate is simple, the trouble is these days most of us need something more because life is complicated.
Q1. What if your Will left money to a son/daughter who was going through a divorce or bankruptcy at the date of your death?
Q2. What if your spouse survived you and remarried? The second marriage cancels his/her Will and he/she could change their Will in favour of the new second spouse and subsequently disinherit the children from the first marriage.
Q3. If you already have children from a previous marriage or relationship, how do you ensure that they would get their fair share?
Q4,. What if you look after a special needs or vulnerable beneficiary on State Benefits? How can you be sure they would be fully provided for in the future?
Why not contact us to discuss your options?