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    • redvalley
    • By redvalley 17th Oct 16, 8:54 PM
    • 27Posts
    • 1Thanks
    redvalley
    Protecting assets against care home fees
    • #1
    • 17th Oct 16, 8:54 PM
    Protecting assets against care home fees 17th Oct 16 at 8:54 PM
    I have heard that one can protect your assets (home) against care home fees by a husband and wife using Tenants in Common. Is this true and what are the drawbacks. Thanks
Page 1
    • Yorkshireman99
    • By Yorkshireman99 17th Oct 16, 9:16 PM
    • 1,583 Posts
    • 1,346 Thanks
    Yorkshireman99
    • #2
    • 17th Oct 16, 9:16 PM
    • #2
    • 17th Oct 16, 9:16 PM
    I have heard that one can protect your assets (home) against care home fees by a husband and wife using Tenants in Common. Is this true and what are the drawbacks. Thanks
    Originally posted by redvalley
    It will not protect against a charge being put on the property.
    • Keep pedalling
    • By Keep pedalling 17th Oct 16, 9:17 PM
    • 2,135 Posts
    • 2,262 Thanks
    Keep pedalling
    • #3
    • 17th Oct 16, 9:17 PM
    • #3
    • 17th Oct 16, 9:17 PM
    It is only true in certain situations. If the first partner to die leaves their half of the house to their children, and the surviving partner later needs care, then only their half the house can be taken into account for self funding.

    If both end up in care over the same period then it protects nothing.

    Most people don't actually end up in a care home, and it can backfire with the inheritors of the house having to pay capital gains tax when the house is eventually sold.

    Personally I prefer to protect my assets, so that should I need care I can afford the best available.
    • redvalley
    • By redvalley 18th Oct 16, 9:20 AM
    • 27 Posts
    • 1 Thanks
    redvalley
    • #4
    • 18th Oct 16, 9:20 AM
    • #4
    • 18th Oct 16, 9:20 AM
    Please explain.
    Thank you
    • uknick
    • By uknick 18th Oct 16, 9:24 AM
    • 489 Posts
    • 218 Thanks
    uknick
    • #5
    • 18th Oct 16, 9:24 AM
    • #5
    • 18th Oct 16, 9:24 AM
    Please explain.
    Thank you
    Originally posted by redvalley
    Explain what?

    How to protect assets in case needed for care home fees or, how relatives can get saddled with CGT if a property is transferred to avoid care home fees?
    • Person_one
    • By Person_one 18th Oct 16, 12:27 PM
    • 25,995 Posts
    • 89,270 Thanks
    Person_one
    • #6
    • 18th Oct 16, 12:27 PM
    • #6
    • 18th Oct 16, 12:27 PM
    Why do you need to protect a home that you can't live in anymore and never will again? A spouse or other dependent still living in the home is already protected and can't be thrown out.
    • redvalley
    • By redvalley 18th Oct 16, 11:06 PM
    • 27 Posts
    • 1 Thanks
    redvalley
    • #7
    • 18th Oct 16, 11:06 PM
    • #7
    • 18th Oct 16, 11:06 PM
    When the tenants in common is drawn up and the husband and wife wills state each half of the property is left to children doesn't that protect the property from being sold to cover the home fees of the remaining party?
    • Yorkshireman99
    • By Yorkshireman99 18th Oct 16, 11:14 PM
    • 1,583 Posts
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    Yorkshireman99
    • #8
    • 18th Oct 16, 11:14 PM
    • #8
    • 18th Oct 16, 11:14 PM
    When the tenants in common is drawn up and the husband and wife wills state each half of the property is left to children doesn't that protect the property from being sold to cover the home fees of the remaining party?
    Originally posted by redvalley
    Absolutely not. The wills have no relevance in this context. The council can still place a charge on the property up to half the value, assuming equal shares, that will be revovered plus interest when the second person dies. If it was that easy everyone would be doing it. There rules about age and disability that prevent such a charge be levied in some circumstances.
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