Property Protection Trust

[Postmanpat198]

Hi. I am having my will written at the moment. The law firm has sent a questionnaire and is offering a Property protection trust fund. I’ve tried to find out about it but there’s conflicting advice.
Does anyone have advice please?

[Kati]

tagging Peridot xx

[Peridot]

Hi Postmanpat198,

What are you trying to protect your property form? Is it a potential care fee issue in the future, trying to ensure your children inherit your property or tax reasons? It will also depend on the age you are now and any health issues you have as to whether any 'trust' may be successful in the future.

There can be complications with protection trusts depending on factors such as the point you create them in your life, as the laws relating to for example care fee assessment, are created expressly to overcome what is known as intentional deprivation of assets. This may help if care home fees are the motivation: https://www.ageuk.org.uk/information...ion-of-assets/

Severing your tenancy (if you currently hold the property as joint tenants (so it will pass to the survivor of you automatically) can ensure that if care fee assessments are needed in the future only the half share of the property is used in any calculation while the other half remains potentially 'in tact'

Of course if you have assets over the threshold then you would not be entitled to any assistance meeting care costs. The calculation of support you may receive with care fees is explained more fully here: https://www.nhs.uk/conditions/social.../funding-care/

Local Authorities are becoming more robust in the way they approach these situations and will now regularly allege there has been intentional deprivation. Of course they have to make the allegation, if they don't then the property trust may work for you. I would point out having been to many care homes if at all possible, I would not wish for my parents or myself to go into a Local Authority care home if it could be helped. The only way to prevent that in my personal situation would be to use the property value. However quite a small percentage of the population do end up in care homes although this is of course likely to rise with us being kept going for longer and the higher incidence of dementia type disease due to this.

If you could provide a little more information then we may be able to point you in the right direction and explain in more detail what the possible outcomes may be for the trust you are exploring.

[Postmanpat198]

Hi Postmanpat198,

What are you trying to protect your property form? Is it a potential care fee issue in the future, trying to ensure your children inherit your property or tax reasons? It will also depend on the age you are now and any health issues you have as to whether any 'trust' may be successful in the future.

There can be complications with protection trusts depending on factors such as the point you create them in your life, as the laws relating to for example care fee assessment, are created expressly to overcome what is known as intentional deprivation of assets. This may help if care home fees are the motivation: https://www.ageuk.org.uk/information...ion-of-assets/

Severing your tenancy (if you currently hold the property as joint tenants (so it will pass to the survivor of you automatically) can ensure that if care fee assessments are needed in the future only the half share of the property is used in any calculation while the other half remains potentially 'in tact'

Of course if you have assets over the threshold then you would not be entitled to any assistance meeting care costs. The calculation of support you may receive with care fees is explained more fully here: https://www.nhs.uk/conditions/social.../funding-care/

Local Authorities are becoming more robust in the way they approach these situations and will now regularly allege there has been intentional deprivation. Of course they have to make the allegation, if they don't then the property trust may work for you. I would point out having been to many care homes if at all possible, I would not wish for my parents or myself to go into a Local Authority care home if it could be helped. The only way to prevent that in my personal situation would be to use the property value. However quite a small percentage of the population do end up in care homes although this is of course likely to rise with us being kept going for longer and the higher incidence of dementia type disease due to this.

If you could provide a little more information then we may be able to point you in the right direction and explain in more detail what the possible outcomes may be for the trust you are exploring.

Thanks for your reply Peridot. It was to protect my assets against any care charges, obviously to give my children some money after my death.

The links given explain that it would probably be deemed intentional deprivation by the council. It does raise the question of offering this service if it’s not “cast-iron”.

[Peridot]

Hi again,

There is always the chance the Local Authority won't question the trust, but they are becoming hotter on this. If it works fine, but be aware of the risk the trust could be called into questioned.

Unfortunately with us all living longer there isn't a bottomless pit for funding our latter years care, if needed. Hopefully the need won't arise but if it did you want to be able to be in the best place possible for your needs which may mean using the assets you have.
If you are able, maybe help people out while you are still here?