Having saved and worked hard to buy our own home and build up assets over time, many of us hope that if we ever needed to go into a Care Home, at least some of our assets would pass on to our beneficiaries and that we would not need to sell up and use all proceeds to pay care fees.
If you make a Will leaving everything to your spouse, they will own the whole property after your death. If your widow or widower then went into a Nursing Home, the property's value in its entirety would be taken into account when assessing care fee contributions.
You can ensure that half the value of your home is preserved for your beneficiaries and not swallowed up by Care Home fees.
Tenants in Common
You can hold your house with your partner or spouse in a way known as ‘Tenants in Common’. This means you each have your own distinct share and interest in the property which you can deal with under the terms of your Will.
Your Will can then include provisions stating that your half of the house is held in Trust and that your surviving spouse has the right to enjoy your half of the house during their lifetime or as long as they wish. The Trust is flexible so that your spouse/partner has the option of moving or downsizing after your death.
If they ever went to a Care Home, half of the house would not be treated as theirs in any financial assessment for fees.
If you are interested in discussing this topic in more detail, please do not hesitate to contact us for Free First Legal Advice.