Protection against care home fees

cherryade44

Hi does anyone know what it's called when a married couple agree to leave their half of the house to the children. So that if one dies and later the other has to go into care the authorities can only take half the house. Thanks very much

Keep_pedalling

An immediate post death interest trust. This gives the surviving spouse the right to remain for life and your children don’t actually inherit until the widowed spouse dies. Useful to protect against loss of inheritance in the case of the survivor marrying again as well as being the most tax effecient option. 

Requires ownership to be held as tenants in common as well. 

tacpot12

The arrangement might be referred to as severing the joint tenancy. Married or unmarried couples can own houses either as joint tenants or as tenants-in-common. If the house is held as tenants-in-common, each co-owner can leave a share of the house to their children.

If the property is held as joint tenants, then to change to tenants-in-common, the joint tenancy has to be 'severed'.

There is information on how to do this here: Joint property ownership: Change from joint tenants to tenants in common - GOV.UK

Browntoa

What ages are the couple who wish to do this 

cherryade44

Thanks for the advice much appreciated 

cherryade44

Browntoa said:

What ages are the couple who wish to do this 

64 and 60, thanks

Catpuss66

Be careful, my parents were tenants in common this was not bought up at 2023 will review. Dad passed away a month ago now mom has to go to probate &  cannot sell the house until completed.

RAS

@Catpuss66. It's a bit of work for mum with which you could easily help. But it also protects your future inheritance.

elsien

Life interest needs to be set up so the surviving spouse can move and still retain that interest. Otherwise if they need to downsize or move somewhere more accessible but can't do so if they lose half the equity when they move, then they tend to be a bit stuffed. 

Catpuss66

RAS said:

@Catpuss66. It's a bit of work for mum with which you could easily help. But it also protects your future inheritance.

Thanks for reply, yes we intend to do probate for her. She feels let down by the solicitors who should have bought it up at the review whilst dad was alive. As for my inheritance not expecting any just want mom & her dogs comfortable somewhere safe.