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Estate planning experts will make sure your loved ones are looked after whatever your circumstances

Your estate is one of the most important things you own and it takes decades to build up. However, it can all disappear within just a few years to fund care home costs – if you do not take essential steps to protect it.

Despite being a worrying thought for homeowners across Scotland, not everyone has secured their property and finances legally by taking advice on the options available to them. Advances in medicine and technology mean we are living longer. The average life expectancies in Scotland are 81 (female) or 77 (male), according to the National Scotland of Scotland (2018). However, this has had a knock-on effect on the number of people going into care homes.

It is estimated that, at present, one in three people will require care – increasing to almost one in two by 2030.

This means that, statistically, almost every couple in the country will be affected.

If you are one of those people, are you prepared? And is your property protected?

What about your elderly parents? What plans – if any

– have they put in place for property protection if they go into a care home?

Along with the life expectancy of Scotland’s population, care home costs are rising, too.

Did you know that, on average, a care home will cost around £1,000 per person per week in 2020? So, one year in care would set you back more than £50,000. However, there is no need to worry about your financial future, as estate planning professionals at ILAWS Scotland are on hand to offer much-needed advice when it comes to protecting your assets.

ILAWS Scotland are also experts in Will-writing and Power of Attorney, which costs just £220 to set up (for a limited time only).

Tony Marchi, principal at ILAWS, said: “Although you are not able to deliberately deprive the local authority, there are legitimate ways you are able to protect property – including transfers and trusts.

“Most people will have options open to them but until we are aware of their circumstances,

no promises can be made. Unfortunately, some people will leave it too late.

“We have all been paying National Insurance and part of these payments is intended for old age care should we require it. “Because medicine is prolonging life, we are now getting an extra 10-15 years, but, as we age more, other things can cause illness and incapacity increasing the need for care. Years ago, you may have still be fit enough to have been cared for at home, however, because we are growing older we are more likely to have to go into care.”

If you require care, a funding assessment will be carried out by the local authority so the social care department to see how much capital and assets you have. Assets will be ring-fenced so that you cannot dispose of them any longer to protect them. As of April 2019, the lower limit for savings is £17,500. This means that the local authority can take the majority of your pension, can take your home and eventually leave you with £17,500 of total savings before they pay entirely for your care – “publicly funded”

If you have never contributed during your lifetime to the system or if your total assets (this includes property, cash, shares, premium bonds or land) is below this limit then you will be publicly funded. You will receive exactly the same care as someone who is paying for it all themselves.

Tony explained: “Nursing care home fees could cost £50,000 a year per person.“that figure will destroy an estate worth £250,000 in just five years!

“It will have taken the person 25-30 years to build it up, but it will soon be gone and their family will get nothing.

“Understandably, it is a real concern to homeowners, so look and see if you have an option.

“It costs a lot less than people thing to protect your property and set up a trust or title transfer. At ILAWS we offer no obligation appointments and we are happy to discuss your options and circumstances.”

To ensure everything you own is not taken to cover care costs, contact ILAWS Scotland on 0800 049 9688. They are also experts in Wills and Power of Attorney.