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.