Protecting your assets
You've worked hard all your life to buy your house...
A Property Protection Trust saves the first half of a property from going in any care charges and allows the surviving spouse to continue to live in the house for the rest of their days if they choose and are able to do so. They would also be able to downsize with the agreement of the trustees and use half of the difference of the profit made on themselves. This arrangement is an alternative to leaving everything to each other and the survivor then being liable to have the whole of the property assessable for care charges. Currently, as at May 2011, the amount allowed before being charged for care at reduced rate is £14,250 and at full rate from £23,250.
When you can't do all the things you used to do...
There are two Lasting Powers of Attorney that can help: Property and Affairs and Personal Welfare. Lasting Power of Attorney is designed to make things easier for friends and family to look after us if we become incapable of doing so ourselves, whether through old age, an accident or other infirmity. The powers between them enable payments to be made and collected on our behalf, purchases, medicines and care to be paid for, as well as decisions about our care, dressing, diet, where we live and much, much more. As with a will, instructions for Lasting Power of Attorney can only be taken while the donor is of sound mind. It is possible to take out either power separately or both together.
Not sure what to do?
A two year discretionary trust is available where an estate is left to trustees to administer in the best way they think fit, guided by a letter to show your wishes. They can make investments, give a right to reside, advance monies, prolong the trust like a protection trust or whatever is best. This relies on executors who need to be competent in their tasks.
Other products are available and arrangements should always be made to suit individual circumstances.
