Bloodline wills and care home fees
Can you avoid your house being sold to pay for care home
fees? The answer in some cases is yes but unfortunately it is
sometimes no. If you are a couple (married or not) you can
do a lot with your wills to help with this. There are also some
big mistakes that you need to avoid.
Peter Camrass DipPFS & MSWW, Estate Planner and adviser
1. Deliberate deprivation of assets.
This is where you have intentionally decreased your overall assets in order to reduce the amount you are
charged towards your care and support. If the local authority can show that you knew you were going to need
care when you did this, it can overturn your actions. This doesn’t mean you should give away your house to your
children just in case you might need care.
2. Lifetime gifts to children.
In theory you can give everything to your children before you die or go into care but there are some real risks.
If your children own part or all of your house and they happen to die before you, unless their will leaves the
house to you, you may have to sell! Similarly if a married child gets divorced, the house will be part of their
assets for the divorce settlement and again, you might have to sell.
3. Lifetime gifts to a trust.
This can be a good solution but only in a few situations and not usually appropriate for your home. It can be very
expensive and may not achieve the desired outcome. Be careful before you do this. It may be worth getting a
second opinion. There may also be tax implications.
4. Solutions for couples.
The best solution for a couple who own their own home is to make sure they have the right sort of wills and own
the house in the right way. What is the right way? There are two options. 1. Beneficial joint tenants (owners).
2. Tenants (owners) in common.
5. Beneficial joint tenants.
This is the default option and is good for younger home owners because if one of them happens to die, the
house automatically reverts to the other – they don’t even need a will! Unfortunately it is not so good later in
life and many couples also have standard mirror wills leaving everything to each other and then to the children
on second death. For older couples tenants in common is better.
6. Tenants in common.
This way you each own half of the house. On death, with the right will, one half can go into a trust which means
it cannot be used to pay for care if the survivor requires it. With the right trust, the survivor can still live in the
house (and downsize if required) but the half in the trust is protected and can pass on to the children on second
death. This also protects against the surviving spouse remarrying and the house going to the new spouse.
7. How can Camrass Wills help?
We can advise you what is best for your situation and make sure it is correctly documented. We can tell you how
you own your home – the Land Registry documents do not use either of the phrases, beneficial joint tenants or
tenants in common!
Wills | Probate | Powers of attorney | Funeral plans
Phone: 01622 720985
www.camrasswills.co.uk
For a free initial consultation
Home visits available. All fees agreed before you proceed.