Airdrie & Coatbridge Advertiser
As England introduces care fee cap, what can we do to protect our assets?
There is currently no such cap in place in Scotland, so a valid Will is vital...
CARE home costs have been back in the news recently as a result of the UK government’s controversial health and social care plan.
One of the prominent headlines has centred on the introduction of a cap on care home fees for residents in England, limiting their liabilities to £86,000 from October 2023.
However, there are currently no plans to introduce such a cap in Scotland and the fact that these costs are potentially unlimited will come as surprising news to many people across the country.
In most cases, your home will be the biggest investment you ever make. Financially, but also in terms of the memories formed and held there. For many, it will also form a huge part of the inheritance intended for loved ones.
But that’s by no means guaranteed, particularly if you or your spouse do find yourselves needing to go into care.
These costs typically total around £50,000 per year and, without the aforementioned cap that is coming into force south of the border, local authorities across Scotland are able to seize your assets - including property and savings - if required to cover the cost of your care.
Fear not, however, there are certain legal protections that can be put into place to prevent this from happening.
ILAWS are an independent legal and will-writing specialist and are the experts when it comes to these measures.
Tony Marchi, ILAWS principal, explained how even ensuring you have a valid Will is not always enough on its own to guarantee your wishes are followed.
“It is a good start,” said Tony. “But you should look at the legal ways of protecting your home via trusts or titles - a route that thousands of our clients have now gone down.
“Lots of people put off writing a Will because they think it’s complicated, but we make it a simple and inexpensive process at £48,” said Tony.
“The coronavirus has shown us how uncertain life can be. Now is the perfect time to set out your wishes for the future.
“If you own a property, you should 100 per cent have a Will. Most people think that when you die, all your assets will automatically go to your next of kin, but that’s not the case.”
Official guidance from the
Citizens Advice Bureau demonstrates that couples don’t automatically inherit from one another unless there’s a valid Will in place - and the unfortunate death of one partner can cause serious problems for those left behind.
“Nowadays, there are many blended families, and a Will makes sure your estate goes to the people you want it to go to,” said Tony.
“But even if you’ve been with your spouse since high school and there are no children from previous marriages, if you don’t have a Will in place, it will take a lot of time, money and hassle to settle your estate.
“Should you end your days in care, the Govern
ment will attack all your assets, including your home.
“With proper planning, this need not be the case as there are ways to protect the family home for the next generation.
“The solution is to ensure that the home is not personally owned on entry into care. The local authority’s financial assessment can then legitimately be completed on the basis that the home is not a capital resource of the resident.
“This can be done through transferring the title of your home, or through lifetime trusts, also known as property protection trusts or asset protection trusts.”
ILAWS are also the experts when it comes to Power of Attorney.
This is the legal provision whereby someone you trust is granted the authority to make decisions on your behalf, typically relating to your medical care and assets, should you find yourself incapacitated.
Tony added: “We should all have a Power of Attorney in place as we have no idea what the future holds - who could have predicted this pandemic, for example?
“It doesn’t mean you are giving power away or not having control over your own life - Power of Attorney can only be exercised with your permission, or if you are unable to act for yourself.
“If you and your family are faced with a medical emergency, having a Power of Attorney can be a life-saving document. If you’re in hospital, no one can make decisions for you if you can’t make them for yourself unless you have a Power of Attorney.
“And sometimes doctors won’t administer treatment or medication or carry out an operation if there’s any risk to you, even if your spouse or children wish them to do so. There’s a common misperception that ‘next of kin’ has the same official standing, but this is not the case.”
Should you end your days in care, the Government will attack all your assets, including your home
Power of Attorney can easily be set up over the phone, online or by booking an appointment in an ILAWS office once restrictions are lifted. Bookings can be made now on Freefone 0800 049 9688.