Joint Tenants or Tenants in Common

JosephWarne42

Hi

Does anyone know if applying Tenants in Common opposed to Joint Tenants can help to protect surviving spouse from care costs. For example, if a couple has 50% ownership, if one passes away the surviving spouse owns 50% and the other 50% is then owned by the children. Therefore only 50% of the value of the home goes towards the means test.

Regards

Joe

Mojisola

JosephWarne42 wrote: »

Does anyone know if applying Tenants in Common opposed to Joint Tenants can help to protect surviving spouse from care costs.

For example, if a couple has 50% ownership, if one passes away the surviving spouse owns 50% and the other 50% is then owned by the children. Therefore only 50% of the value of the home goes towards the means test.

That's exactly how it works - presuming that the deceased had written a will that left their share to the children and, hopefully, full rights to the survivor to stay in the house, etc.

Yorkshireman99

Mojisola wrote: »

That's exactly how it works - presuming that the deceased had written a will that left their share to the children and, hopefully, full rights to the survivor to stay in the house, etc.

Sound advice! The only caveat is to make sure that the severance is done correctly, and the will is prepared by a solicitor not a will writer or DIY. The wording is critical.

loulou41

JosephWarne42 wrote: »

Hi

Does anyone know if applying Tenants in Common opposed to Joint Tenants can help to protect surviving spouse from care costs. For example, if a couple has 50% ownership, if one passes away the surviving spouse owns 50% and the other 50% is then owned by the children. Therefore only 50% of the value of the home goes towards the means test.

Regards

Joe

Are you thinking of giving the 50% on death of the first spouse to the children outright or put in a trust? You should read property trust wills on the internet

Sea_Shell

On the flip side of that can a LA take a charge on the whole house, if owned Joint Tenants? Can they pursue on first death, or only on 2nd?

Mojisola

Sea_Shell wrote: »

On the flip side of that can a LA take a charge on the whole house, if owned Joint Tenants? Can they pursue on first death, or only on 2nd?

If one of a couple needs residential care and the other will stay in the house, the value of the house is not counted in the financial assessment.

If a couple are joint tenants and the survivor of the couple needs residential care, the whole value of the house will count as capital and the resident will be a self-funder.

Yorkshireman99

loulou41 wrote: »

Are you thinking of giving the 50% on death of the first spouse to the children outright or put in a trust? You should read property trust wills on the internet

OK for ideas but essential they then get professional advice. Nobody should rely just on advice from the internet.

JosephWarne42

Not looking at Trusts. All look like scams. No way to avoid care costs.

getmore4less

loulou41 wrote: »

Are you thinking of giving the 50% on death of the first spouse to the children outright or put in a trust? You should read property trust wills on the internet

Immediate post death interest trust set up by the will is the specific type of trust to look at initially.

In most cases does the job.

Yorkshireman99

JosephWarne42 wrote: »

Not looking at Trusts. All look like scams. No way to avoid care costs.

Certainly there are plenty of scam companies around offering ineffective trust schemes. However re-read post #2 and#9

loulou41

getmore4less wrote: »

Immediate post death interest trust set up by the will is the specific type of trust to look at initially.

In most cases does the job.

I agree with getmore4less.I know a few of my friends have done it. It is not counted as depriving of assets if it is an ipdi trust. I have done a lot of research on this subject. If you are concerned about scam get a step accredited solicitor to draft your will. Personally I would not leave 50% to my children outright,