Protecting your home
Protecting your home
Your home is probably one of the most valuable assets you will own during your lifetime, and one which you have worked hard for. So it is only right that you would think about protecting the capital within your home for those you care about. There could be many reasons why you would like to protect the asset from future events, including – but not limited to; protection for your children, care costs or possible future partners.
How we can help
We offer a variety of different solutions to help protect your assets. Our consultants are more than happy to look at your situation and best advise based on what you are looking to achieve. Give our friendly team a call today for more information.
Severance of Joint Tenancy with Life Interest Trusts
If you own your property jointly with your partner, one way to protect your home may be to sever the tenancy on your property, and own it as ‘Tenants in Common’. This splits your property ownership with your partner in half, meaning you can name the beneficiaries who are to receive your half of the property on your death – your partner can name different beneficiaries of their half if they wish. There is a lot of protection by owning your property in this way, and as part of your Wills we would include a ‘Life Interest Trust’ for you and your partner, which means you have the right to live there for as long as you need to. However, you can also state rules of the Life Interest if you would like, for example, the Trust could end if your partner met someone new after you had died, or they stop using the home as their main residence for example. When the first person dies their half share of the property falls in to Trust for their beneficiaries and is protected there until the second person has died. When the second person dies, or the Life Interest Trust finishes, the house is distributed out to the respective beneficiaries.
Did you know the average cost of care is between £800-£1,000 per week?
Talk to us about how this could affect your home.
What can be done by Will to protect my house from care fees?
It is important to note that a Will speaks from death so any provisions in there will take place on death only.
A life interest trust can protect part of the home from care fees since the deceased’s share of the home has transferred to the trust so will not be counted as part of the means test assessment carried out by the local authority. If you would like further information, please speak to a member of our friendly team today.
Can I sign my house over to my children?
We would never recommend signing your house over to your children for a number of reasons. If you were to sign the house over to your children they would become the legal owners of the property, meaning you have NO protection. You would also have to pay a full market rental to your children if you wish to continue living there. There may also be Capital Gains Tax liabilities. There are a number of other reasons signing the house over to your children is a bad idea – we are more than happy to discuss this with you and to give you an alternative solution, which we offer to our clients.
Contact us today about protecting your home
If you have any questions, or would like to arrange an appointment, please do not hesitate to contact us.
