Asset Protection Scotland

teddyboy02

Hi

I am hoping to acquire some info and advice regarding the following.

My parents both mid 70s are looking at the possibilty of protecting their main joint asset which is their home.
They are generally in good health but are worried about losing their home if heallth deteriorates to a point where one goes into care.

They are aware if either of them dies the other as in their will gains the deceased 50 % share of the home.
If the survivor then requires long term care at home or in an actual care home they will have to sell the home to pay the full funding costs.

As things stand the remaining person will now be assessed as having assets consisting of property and savings etc amounting to no
more than 170k.

They are currently looking at property protection where on ones death that persons 50% share of the home is at least protected against means tested care home fees if the remaining person has to then go into care.

1. Is this correct re a property protection trust?

2. Is there a better alternative to this as the council may challenge setting up of the trust using "deprivation of capital"?

3.Parents are basically looking to protect at least 50% of the home they worked hard for to help out their children/grandchildren financially if a care home is needed in future.

The advice they have been given has 3 possibilities i believe:

Equity Release (not needed)

Family Protection Trust

Which may not be a real alternative if the Local  Councils were to use Deprivation of Capital.

The other if i have understood correctly was to change the will where on 1st death that 50% doesnt actually pass to the survivor giving them full ownership.It passes to the children/beneficeries x 2 via a change to the current mirrored will and is less likely to be challenged by the council.
So if the remaining person then goes into care only their half of property inc any savings above is used when means tested.(i believe the Council cannot even force the sale of the house if the other owners of the 50% share disagree ie us the children/beneficeries)
This looks on the surface the best fit but was highlighted to be more expensive.

Any idea of the above scenarios or alternatives costs would also be helpful.


Any other advice re the pros & cons on this subject would be greatly appreciated.

Kind Regards

Keep_pedalling

Do you really want to risk one of your parents ending up in an “over my dead body” care home just so you can inject their wealth.

Forget anything like putting their assets in a family trust it won’t work and the sharks who sell these things will be the only ones to benefit though a fat fee.

Splitting the tenancy and giving the survivor a life interest is as far as this should go, and forget trying to block the sale as a method of avoiding care costs, the LA would simply put a charge on it and your parent would lose control of what care home they end up in.

Although unlikely it is possible that the whole home could still be used for care fees if both parents ended up in care at the same time.

Savvy_Sue

Seconded ... 

Far fewer people end up in care than people imagine. And of those who do end up in care, many don't survive for years on end. 

The local authority don't force a sale: payment for the care needed (either at home or in a care home) can be made by other means. 

I've always felt that if anyone I care about gets to the stage where they can no longer live at home, they should get the very best care money can buy, stuff my 'inheritance' or my children's 'inheritance'.