How To Stop The House From Being Utilized Towards Paying Nursing Home Charges After Death Of First Spouse?

There are many in the UK, who are said to have lost their home towards making payment for Nursing Home Fees. The family home that was regarded to be the children’s legacy gets swallowed up just to meet nursing home charges. The worst thing could be when the surviving parent is sick and family distressed, which such an incident takes place. Hence, how could it be stopped?

Helping to stop house from being used for making payments towards nursing home charges

The process is quite simple, however, not many are aware about it. Both parents are required to write a Testament and Last Will as well as a Trust. There is required just 10 pounds for setting up a Trust, also called Family Trusts.

How this system works?

• The house is to be within Tenancy in Common, with most not being so. They could be bought in Joint Tenancy, which is wrong. The deeds are to be examined or the solicitor is to examine the deeds for ensuring that family home is within Tenancy in Common. It means, every spouse would own half of property.

• Then a Will is to be made by both parents. The Will’s main components are to be the Trust, where the valuables, property, shares, stocks and money is to be placed. The Trust’s main beneficiary would be surviving spouse, while both parents could do what they desire to with the estate when alive, since the Trust comes into effect only after first spouse dies.

• A Trust is to be made for each, a process called Equalising the estate. How large the estate is, does not matter at all.

Their half house, with the death of first spouse, goes into Trust and not towards surviving spouse. If that spouse is required to go to Nursing Home later, then half house gets assessed. A half house according to Inland Revenue is regarded valueless, when assessment is concerned. This way, on paper, surviving spouse, going into Nursing Home, can do so, without the required funds, and also avoid needing to sell house for paying fees of Nursing Home and also reduce potential Inheritance Tax.

It is to be understood that the system is just good, when a spouse enters the care, following first spouse’ death and it is also approved by Revenue.

Knowing this can help the individual to avoid having to sell the house and to go into a care without having to worry about funds.

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Beginners Guide Towards Paying For Care Home In The UK

It can be a real overwhelming process to work out towards paying for care home. It also depends upon where the individual or relative resides in UK, causing care cost to vary outside free NHS provision.

A report published sometime back stated long term care home fees to be paid by individuals during their lifetime, being capped around £35,000. Presently, fees paid by the individual are unlimited. The above limit set by government can be increased in near future, in case, free NHS provision continues to suffer.

Knowing the details

The fee for heating, lighting and food stands at £7,000 - £10,000 / annum with respect to care fees. The report also states adding this charge to the capped limit of £35,000. As individuals are required to pay for it, the report states it is quite fair for the additional charges to be included, irrespective of the fact, with the individual receiving care from a care home or own home.

Presently, means tested threshold prior to paying full care cost is £23,250. But the report suggests increase of about £100,000 prior to the individual being liable towards social care’s full cost, with lifetime £35,000 being added later.

Moreover, a criterion in the form of national eligibility is suggested for ensuring better regularity. Hence, if the individual moves to the other local authority, no further assessment is required. If the person is short on information with regards to paying for care home, then following are the keypoints to be considered.

• Advice: A reputed company is to be found for providing long term care home advice.

• Care types: Two long term care home options are prevalent, which is Caring Home and Home Care.

• Fees: It can vary depending upon care option, with Home care being affordable option.

• Financial support: Depending upon assets and savings, the person can take support from local authorities.

• Power of Attorney: Friends and family can act on the individual’s behalf through legal arrangement known as Power of Attorney.

• Online tools: Several online tools exist for making payment to care like live chat with financial adviser, FAQs, videos, care calculator cost .

• Financial advice: Contacting qualified Financial Adviser can help to know on care fees as well as paying before committing.

• Means testing: State would offer maximum fund for people qualifying means test.

• Annuities: Numerous financial companies exist that offer annuities to help with care cost.

Knowing all the above with regards to care home fees advice can help the individual to take a wise decision.

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