The 4 New Year’s resolutions to help protect your assets

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MANY of us will now be breaking our hastily scribbled New Year resolutions: perhaps a wee-dram-won’t-hurt in our not-so-dry January, or that well-intentioned exercise bike that’s starting to gather dust.

But there’s one resolution that it is vital to stick to in 2023 - making sure your property and assets are well protected, whatever life throws your way.

And while that’s something we prefer to keep tucked away at the back of our minds, there are, sadly, statistics that are a sobering wake-up call for those of us of a certain age. Alzheimer’s and dementia affect hundreds of thousands of people across the UK and are a leading cause of death.

So we simply can’t put off getting our financial houses in order - either through fear or a mistaken belief that doing so would be complex and expensive. It’s an oversight that could, ultimately, see our assets (normally the family home) being sold to pay for care home fees.

Tony Marchi, principal at ILAWS, is keen to spare people the heartache of losing their home to pay for care home fees.

“You wouldn’t believe the number of urgent cases we get,” he said. “People put it off and off and off and sometimes it is too late. Now is the time to get it done. It’s simple and straightforward - and we will come to you.

“Every year we make New Year’s resolutions with the best of intentions, and some we keep and some we don’t,” he said.

“But this is a one off and one of the most important things you will do in your life. Then you can forget about it and concentrate on something different again.”

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Here we set out the resolutions you should be making, and why:

1. I wish to protect my property for my loved ones

There’s no easy way to say it: the assets you have built up over a lifetime (for most people, that’s the family home) could be at risk should you or your partner need to go into a care home.

In fact, if you have capital assets worth £29,750 or more - which includes the value of your home - you must meet your own care costs in full and these currently average well over £60,000 per year.

And it’s a common misconception that if you jointly own your home with your partner, it will be safe.

“The reality is, you’ve probably spent 25-plus years paying off your house – but you could lose it in six months,” said Tony.

“Even if only one partner goes into care, you could lose the whole house. Many people don’t realise that – if your partner goes into care, the local authority may still be able to take the whole house.”

There are options available to help protect yourself and your assets. And, whilst it is illegal to deliberately stop the local authority from taking money to pay for care home fees, there are legitimate ways to protect your home, involving transfers and/or trusts.

Utilising legal instruments such as property transfers and trusts might be much more straightforward than you imagine. And they are likely to be much more affordable than you think.

“On occasion, we cannot help somebody - as there is no one-size fits-all - but about eight or nine times out of 10, we can provide clients with different ways of preventing the sale of the house,” said Tony.

“They do not have to cost a fortune,” said Tony. “The cost varies from property to property depending upon value and individual circumstances. But it is much less expensive than most people think.”

2. I will arrange a Power of Attorney

Trusts and property transfers are not the only way to protect yourself and your assets.

A POA grants the authority to someone you trust - typically a spouse or other close relative - to make key decisions regarding your affairs should you ever be unable to do so yourself. As long as it is in place before you are incapacitated, POA gives a long term protection relating to your welfare and assets for a one-off fee - and means you have personally selected the person who will take control.

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3. I will draw up or update my Will

For maximum protection, it is crucial that a Will should be put in place. Something that needn’t be time-consuming or complex.

“Lots of people put off writing a Will because they think it’s complicated,” said Tony. “But we make it a simple and inexpensive process at £48. If you own a property, you should 100 per cent have a Will.”

4. I will contact ILAWS today

With more than 30 years experience, ILAWS Scotland are the estate planning professionals of choice for many residents across the country, understanding your needs fully and providing ongoing, quality advice. They will ensure the whole process is smooth and straightforward - and will visit you in your own home if needed. Power of Attorney can easily be set up over the phone, online or by booking an appointment, either in an ILAWS office or your home at no extra cost. Bookings can be made now on Freefone 0800 049 9688.