Illness pre planning

Carrot49

My question relates to buying our next home. My wife and I will be hopefully moving into a bungalow early next year. We have 2 children and a niece we would like to leave the house too when we die. However if one of us dies and the other ends up in care what is the best way to pass the house onto our relatives? The house will be worth approx 200k when we buy.

Emmia

Carrot49 said:

My question relates to buying our next home. My wife and I will be hopefully moving into a bungalow early next year. We have 2 children and a niece we would like to leave the house too when we die. However if one of us dies and the other ends up in care what is the best way to pass the house onto our relatives? The house will be worth approx 200k when we buy.

First and foremost your assets including your house, savings etc should be used to support you in your old age, including if you need care. There are people who will sell you Trusts, but these can have some quite significant downsides, and unwinding them can be extremely expensive.

Keep_pedalling

Assuming this is your only significant asset, then it is simply down to chance, there is nothing you can do to dodge it. Giving your house away is never a good idea and would fall under deliberate deprivation of assets if you needed residential care. G

Carrot49

Emmia said:

Carrot49 said:

My question relates to buying our next home. My wife and I will be hopefully moving into a bungalow early next year. We have 2 children and a niece we would like to leave the house too when we die. However if one of us dies and the other ends up in care what is the best way to pass the house onto our relatives? The house will be worth approx 200k when we buy.

First and foremost your assets including your house, savings etc should be used to support you in your old age, including if you need care. There are people who will sell you Trusts, but these can have some quite significant downsides, and unwinding them can be extremely expensive.

A friend of a friend has put 50% of her house in a trust for her children but she remains the holder of the other 50%. I'm assuming this was done so that they had at least something from there mothers lifetime of work. I'm not sure how this would work as another contributor has mentioned it could be seen as a deliberate deprivation of assets.

RAS

Carrot49 said:

Emmia said:

Carrot49 said:

My question relates to buying our next home. My wife and I will be hopefully moving into a bungalow early next year. We have 2 children and a niece we would like to leave the house too when we die. However if one of us dies and the other ends up in care what is the best way to pass the house onto our relatives? The house will be worth approx 200k when we buy.

First and foremost your assets including your house, savings etc should be used to support you in your old age, including if you need care. There are people who will sell you Trusts, but these can have some quite significant downsides, and unwinding them can be extremely expensive.

A friend of a friend has put 50% of her house in a trust for her children but she remains the holder of the other 50%. I'm assuming this was done so that they had at least something from there mothers lifetime of work. I'm not sure how this would work as another contributor has mentioned it could be seen as a deliberate deprivation of assets.

Not necessarily a good idea.

One option that secures part of the house value against care fees and more importantly the survivor changing their will/remarrying is an Immediate Post Death Interest trust, which only works for those who are tenants in common.

The surviving spouse can use half the value of the house, and any other assets, for their own care needs, or to leave to their preferred beneficiaries if it's a blended family.