As life expectancy increases, so does the concern about the rising cost of care home fees. For many, the prospect of depleting their life savings to fund care can be a significant worry. However, there are strategies to mitigate these costs, including the use of trusts within a will.
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For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of Trusts in Wills and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
Understanding Care Home Fees
Care home fees can be substantial, and the costs vary depending on the level of care required and the location of the care home. While some individuals may be eligible for financial support from the local authority, many will need to self-fund their care.
How Trusts Can Help
A trust is a legal arrangement where assets are held by a trustee for the benefit of beneficiaries. By incorporating trusts into your will, you can protect your assets from being included in your estate for care fee assessments.
Types of Trusts Useful for Care Fee Planning:
- Discretionary Trusts:
- Flexibility: This type of trust provides flexibility in how the assets are distributed to beneficiaries.
- Protection: The assets held within a discretionary trust are generally excluded from care fee assessments.
- Lifetime Trusts:
- Immediate Benefit: Assets transferred to a lifetime trust can provide immediate benefits to beneficiaries, such as income or capital.
- Asset Protection: By transferring assets into a lifetime trust, you can protect them from potential future care fee liabilities.
Key Considerations When Using Trusts for Care Fee Planning:
- Early Planning: It’s essential to plan early to ensure that the trust is established and funded before you need care.
- Expert Legal Advice: Consult with a solicitor experienced in estate planning and trust law to ensure that the trust is structured correctly and complies with tax regulations.
- Potential Tax Implications: Be aware of potential tax implications, such as Inheritance Tax, when setting up a trust.
- Review and Update: Regularly review your trust to ensure it remains effective and aligns with your changing circumstances.
Example Scenario
Let’s consider a hypothetical scenario:
- John and Mary: A couple in their late 70s with significant assets.
- Concern: They are worried about the potential cost of care home fees in the future.
- Solution: They establish a discretionary trust during their lifetime, transferring a portion of their assets into the trust. The trust is structured to provide income to them during their lifetime, and upon their death, the remaining assets can be distributed to their children.
By transferring assets into the trust, John and Mary can protect a significant portion of their wealth from potential care fee assessments.
Blackstone Solicitors: Your Trusted Partner
At Blackstone Solicitors, we understand the importance of effective estate planning, including the use of trusts to protect assets and mitigate care home fees. Our experienced team can provide tailored advice and guidance to help you achieve your goals.
Our services include:
- Will Writing and Estate Planning
- Trust Creation and Administration
- Care Fee Planning
By choosing Blackstone Solicitors, you can have peace of mind knowing that your estate is protected and your loved ones are provided for.
Conclusion
While care home fees can be a significant concern, careful estate planning can help mitigate these costs. By understanding the benefits of trusts and seeking expert legal advice, you can protect your assets and ensure a secure future for yourself and your loved ones.
We have a proven track-record of advising upon all aspects of private client work. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.to incorporate, what kind of ownership
How to Contact Our Private Client Solicitors
It is important for you to be well informed about the issues and possible implications of setting up a Trust. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Trust solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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