Protection of Property from Long Term Care Fees

With the cost of some care homes costing £50,000 a year, Mrs C. was keen to ringfence some of the value of her property should she or her husband require long term care. Amongst their modest estate was a property valued at £400,000. Their home was owned in joint names and she was concerned the full value of it could be used to fund a care home, leaving nothing left as legacy for her children.

·   We separated the title of the property so that each spouse owned as a Tenant in Common, meaning each owned 50%.

·   We put in place mirror wills that one first death placed that spouse’s share into a Property Protection Trust giving the other spouse a life interest in the property meaning that they could continue to live there until they died.

·   Should the second spouse to die require long term care, there is currently no scope for the Local Authority to have access to the 50% share that is held on trust meaning the two sons, as ultimate beneficiaries, would be able to inherit at least 50% of the value of the property.