We work hard all our lives to pay off our mortgages, so we have an asset to hand down to our children (or other family members) when we are no longer around. This property can provide them with a place to live, financial security or a pension pot – but what if this opportunity was taken away?
Unfortunately, because of the way care home fees are met in Scotland, many people will have to contribute to the cost – or meet the full cost – of their care in later life.
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As your property is one of your biggest assets, it is likely that it could be used to pay for care home fees – fees that are more than £1,000-a-week!
And this applies to individuals and couples whether they have paid off their mortgage in full, or not.
According to Care Information Scotland’s website: “If you are the owner, even if you have a mortgage on your home, your home is treated as a capital asset unless it’s disregarded. This applies to sole and joint owners.”
Read more about this on Care Information Scotland’s website.
Can I avoid selling my home to pay for care costs?
For people who are facing the possibility of losing their home to meet care home costs, Tony Marchi, principal at ILAWS Scotland, is providing solutions and says “yes, you can”.
Tony and the team at ILAWS are experts in protecting people’s homes from being used to pay for care fees – either through a placing the property in a protected trust or transfer. Trusts and transfers have saved families across Scotland from losing their homes and allowing them to continue to live in it. Could you take advantage of this? Ask ILAWS.
How can you protect inheritance from nursing home?
This video explains more:
There is a lot more information about this on ILAWS Scotland’s website.
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What is a TRUST?
Placing your home in a Protected Property Trust (or PPT) is a legally-binding arrangement that you control when you pass your home on to someone you trust, like a spouse. One benefit of PPT is that the remaining spouse can continue to live in the house until they die, but at least half the value of the estate is preserved for the children to inherit.
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What is a TRANSFER?
If you transfer your home, you are transferring ownership over to your children now rather than passing it on to them in a Will (if you do not have a Wil drawn up, ILAWS can help with this too).
‘Why would you NOT do this?’ – Tony Marchi, ILAWS
We invest so much money in our properties, every week, every month, every year – from spending cash on heating, cleaning, maintaining and insuring our homes. These recurring costs can all add up (especially with the rising energy prices), but we can protect our home for a one-off payment.
Tony Marchi at ILAWS explained: “The amount of money we spend on our properties is astronomical, but it is an essential part of life, like insuring your home.”
Tony likens a trust or transfer to any good home insurance policy, only it is only paid for ONCE.
“Home insurance is a legal obligation when you have a mortgage. However, when the mortgage is paid off, it is no longer an ‘obligation’, yet people continue to pay it. Why? Because they want to make sure their property is protected and make sure it is insured against fire, theft or other damage.
“It seems absurd that some people won’t protect their home from being used to pay for care home fees, with a one-off payment by arranging a trust or a transfer. Why would you NOT do this?
“One of the main reasons people may not do this is because of cost but it is much more affordable than you might think and, ask yourself, can you afford not to do this?
“If you go into care, your home could be taken – this is what will happen, without protection. ILAWS can help prevent this from happening, legitimately.”
Is your inheritance protected? What can you do?
The payment of care home fees is a complicated subject and, while not everyone is eligible to pay for their care, it does depend on many things. The best things to do are:
- contact the team at ILAWS Scotland to find out how you can protect your home
- contact ILAWS Scotland to protect your inheritance and ensure your family receive what you want to leave them
- contact ILAWS Scotland to discuss the options available to you, without any obligation
For more information, visit ILAWS’s revamped website.
