Selling home to pay for nursing home fees?
Is it possible that you can avoid selling home to pay for care fees? With some advance planning and good advice which we can provide, the answer is often yes. But this is often a side effect of a more in-depth program. Some of the beneficial effects are listed below. Our booklet, Asset Protection Secrets can give you more details on how to avoid selling a home to pay nursing home care fees. Often families believe that by gifting their property to loved ones it will protect their home. This is not the case and can leave you open to big risks for example, the people you gift the property to may (quite apart from the Capital Gains Tax bill which will grow automatically over time):
- Become bankrupted or just have trouble with creditors.
- Die before you decide to sell the property
- Have their own care issues.
- Get divorced (in which case you could become homeless as part of the divorce settlement!)
- Their long-term illness could undermine their finances, leaving your home vulnerable. Worse, if they lost mental competence through accident or illness, the Courts could appoint a solicitor to manage their affairs.
In any of these cases by giving your home to your children or anyone else, they become the owners. Your home is now THEIR asset, and if they have claims against them YOUR HOME is under threat. Also this means that you no longer have the right to sell your home – it no longer belongs to you. The new owners would need to be the ones who agree to sell it and decide what to do with the capital and income. Within a probate property trust, you chose the trustees, and give them guidance as to what you would wish them to do. Not only that, but the trustees are duty bound to look after you.
What other benefits does setting up a Trust provide?
The Probate Home Protection Trust also brings extra advantages to subsequent generations. For example, the Probate Home Protection Plan can:
- Last up to 125 years.
- During that time it can make loans to your chosen beneficiaries. This might be done for example, if the beneficiaries marriage was in trouble. The loans could even be repayable on death to help future generations.
- Disabled future family members can be helped without losing entitlement to State benefits.
- Or make outright gifts if that is more appropriate.
This type of planning is often referred to as ‘blood line planning’.
Can I avoid selling my home to pay nursing home fees?
Avoid selling home to pay for care fees - it’s not just a UK problem!