When we know someone has lost their home to pay for the nursing home fees that seems quite an emotive subject. In simple and short terms, it means the family home that was to be transferred to kids will now be mortgaged to pay off the nursing care fees. The biggest upset is caused by the fact that all this happens when surviving parent is ill and the family is distressed. Can you stop it?
Of course, you can. But not any people know about the process. It is quite simple. Both parents are required to write a last will and testament and a trust. One only needs a meager amount of ten to write a testament. Basically these are called the family trusts. Here is a brief description how the system works:
Make sure the house is in tenancy of common as most houses are not. They are purchased on a joint tenancy. Examine your deeds or appoint a solicitor to do the same and make sure the family home is in tenancy of common. In other words, each spouse own half of the property.
Make a will. Both parents should make their separate will. The main component of the will is supposed to be the trust in which the property, valuables, stocks and shares and money can be placed. Put as much in the trust as you can. The main beneficiary of the trust will be the surviving spouse and both parents can do what they want with the estate till they are alive as the trust doesn’t come into effect unless the first spouse dies.
Make a trust each. It is meant to equalize the estate irrespective of the fact, how big it is.
This is all what you are to do and consider. I recommend everyone should do it.
Now when the first spouse dies, half house goes to the trust and not the surviving spouse. If the surviving house has to go for the nursing care, only the half house will be assessed. Often this half house is regarded as valueless as far as assessment is concerned. So, on the papers, the surviving spouse that goes into a nursing home, do that without funds and makes It possible for avoiding care home fee and at the same time it reduces potential inheritance tax.
An important note, this system is the best when a spouse has to go to care following death of the first spouse. It is approved by revenue and has been done before. So, on a concluding note:
You must have a joint property in tenancy in common and you must write will and begin a family trust. In such issues if you have any problem, there are so many qualified attorneys out there to help you. You can book an appointment with your family lawyer and discuss all such things with them.