You may be aware that the government recently made a promise to pay some of the costs relating to long term care following recommendations by the Royal Commission. What exactly does this mean in real terms and how will it affect you? In fact the government has only agreed to pay certain costs relating to Nursing Care! For example, the time spent by a nurse with the patient etc, whilst the individual is still liable for the residential & Personal Care Costs. This means if you have assets over £14,250 you have to pay something towards the costs and if you have assets over £23,250 you have to pay everything towards the costs! This is likely to be £30,000 - £60,000 per year.

Over the UK nearly half a million people are living in residential care, and the cost of caring for the growing army of pensioners is predicted to soar to nearly £30 billion by the year 2030. Women have a one-in four chance of needing long-term care, and men a one-in-six chance. Under the Community Care Act 1990 the local council have the right by law to seize the family home, put it up for sale and use the proceeds to support your long term care costs. Your home could be under real threat.

At least 70,000 homes were taken last year (200 per day) resulting in many beneficiaries losing their inheritances.

How can you avoid these costs? It is illegal to deliberately transfer your own property over to relatives or trusts if the prime motive is to avoid paying long term care costs. However, it is not illegal for your partner to make a provision in his or her Will that upon death their own half share of the family assets, including your home, is placed in trust for your children or other beneficiaries instead of passing directly to you. The difference is that you don't own your spouse's/partner’s or joint owner's half share of your property, so you cannot be said to be reducing your estate illegally!

The Protective Property Trust Will has been specially designed for this purpose, allowing the surviving partner to continue benefiting from the assets within the Trust and allowing your property to be passed on to your loved ones in the fullness of time.