If like most people your home is your main asset and you own it jointly with another person, you can take action now to safeguard at least part, or even all, of your property from being used to fund any future long term care.

For example, if you are married, by creating a Life Interest Trust in your Will, you can leave your part of your property to your children giving your spouse a life interest, (thus ensuring that they keep a roof over their head). After your death, should your spouse need to move into residential care, the local authority can only take into account the value of your spouse’s share of the home when assessing care home costs.

Reducing Care Home Cost Liability

The experts tell us that although we are all living longer we are not necessarily living healthier. It is a sad fact that 1 in 4 of us will end our lives in some kind of residential care.

Most people realise nowadays that going into care could end up with you losing the family home to pay the fees. Many people do not realise that if you jointly own your home with another person (eg spouse), making a Will could prevent the worst from happening.

Typically residential care home fees are Ł25,000 or more per annum. For 2008/09 the government has prescribed that if your assets are over Ł22,000 if you live in Wales, or Ł22,500 if you live in England, then you will be expected to pay the full cost of your care. If your assets are less than this, you will contribute towards the cost of the care until your assets are down to Ł19,000 (Wales), or Ł13,000 (England). From this it is easy to see how soon the money from the sale of your home could be eaten up, leaving little or nothing for your nearest and dearest.

Securing the property for your children

A Life Interest Trust can also be useful in a situation where one or both partners have children from a previous relationship. You can leave your part of your property to your children and give your partner a life interest. After your death, your partner will continue to enjoy the benefits and security of the home, but on their death the property (or your share of it) will go to your children.