Could I really lose my home to care fees?
We will all have heard that care fees in later life can place us at risk of losing our home, but do we really understand why or how that can happen? Have we given the issue the thought and consideration it merits? Probably not.
Some Press and Journal online content is funded by outside parties. The revenue from this helps to sustain our independent news gathering. You will always know if you are reading paid-for material as it will be clearly labelled as 'Partnership' on the site and on social media channels.
This can take two different forms.
This means the content has been paid for and produced by the named advertiser.
This means the content has been paid for and approved by the named advertiser but written and edited by our own commercial content team.
The chance of you ending up in care is constantly rising. According to the Office for National Statistics it is currently estimated that one in four people over the age of 60 will end their days in care. It is predicted that this will rise to one in three by 2030.
The cost of care can be up to £75,000 annually. When you consider the threshold for council support with fees is set at just £32,750, with your home included as one of your assets, the threat to your property is clear.
Although you cannot deliberately deprive the local authority of care fees, there are legal ways to safeguard your home from being taken to cover care home fees, and that's through Protected Property Trusts (PPT) or Transfers.
In basic terms, setting up a Trust or Transfer lets you give ownership of assets to someone else in order to protect them, manage them or distribute them according to your wishes on your death. This can protect your property from being taken from you to pay care home fees.
Tony Marchi, principal at ILAWS Scotland, says many people underestimate the threat to their property. As estate planners, ILAWS are experts at advising customers on their best course of action and put in place PPTs and Transfers for hundreds of clients every year.
However, Tony and his team also receive calls from people who have left it too late to put the appropriate protection in place. There is nothing they can do once you or your spouse requires residential care.
That is why it so important to take action now to mitigate the risk to your biggest asset.
'It's a misconception that you can't lose your house, or that you will lose half your house,' said Tony. 'That is not the case. If you jointly own a home with your partner or spouse and one of you goes into care, you can lose the whole house.
'Usually when people joint own a property in Scotland, they own it with what is called a survivorship clause in there. That means when one of them dies, immediately the other person becomes the sole owner.
'For example, if a husband goes into care and he owns a house jointly with his wife, if she dies first, he will end up being in care and owning the whole house. That's how joint ownership works – your Will isn't even enough to change that; your Will would not supersede the title deeds.'
More than ever before our children are relying on their inheritance for financial security, but without putting in place a PPT or Transfer that inheritance isn't guaranteed.
'You spend a lifetime getting to the position of owning your property outright,' explained Tony. 'Possibly one of the reasons you wanted to buy your house was to pass it onto your children, but you can lose it so easily and so quickly.
'Time is of the essence, do it now and then you can breathe a sigh of relief – just like when you paid your mortgage off – but with the knowledge that your property is safe.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Press and Journal
9 hours ago
- Press and Journal
Best pictures as KidsOut annual fun day returns to Gordon Barracks, Aberdeen
This year's KidsOut event took place at Gordon Barracks in Aberdeen. The KidsOut Aberdeen Charity runs an activity event for approximately 500 children with additional needs, both neurodivergent and physically disabled. Children attend from schools across Aberdeen and Aberdeenshire. It has taken place every year since 1990 on the second Wednesday of June and is thought to be the largest single outing for disadvantaged children in the country. The event starts at 9am and finishes around 2pm with many exciting activities for the children such as bouncy castles and games stalls. Press and Journal photographer, Kath Flannery attended this year's celebration below:
Metro
a day ago
- Metro
I came out 10 years ago — this is what your teen daughter needs to hear
At 15 years old, I sat my mum down and told her I was gay. At first, she sighed with relief — she thought I was about to tell her I was pregnant. Then came the surprise. I knew she'd be fine. I wasn't scared of being disowned or thrown out, like so many in the LGBTQ+ community unfortunately still are. 'I had no idea,' she said. 'How do you know?' It's a common response. A lot of parents think their kids are 'too young to know'. But if I'd told her I fancied a boy, she wouldn't have batted an eyelid. Some of my extended family likely assumed it was 'just a phase'. But if it is, it's a long one — 10 years later, I'm still a lesbian and in a happy, healthy relationship with a woman. More young people than ever before are coming out. According to Office for National Statistics data, 10.4% of those aged 16 to 24 identified as LGB in 2023 — this is up from just 2.8% in 2014. The ONS credits this to changing societal attitudes and growing visibility. But while more young people are coming out, the overall climate for LGBTQ+ people feels increasingly hostile. The UK has dropped in global rankings for LGBTQ+ rights. The annual analysis by ILGA-Europe, a human-rights group, cited the recent Supreme Court ruling on the definition of a 'woman', as well as well as queer refugees facing homeless and abuse during the application process as just some reasons for the UK's low placement. So if your daughter — or any teenager — has shared their sexual identity with you, here's what they might need to hear. With thousands of members from all over the world, our vibrant LGBTQ+ WhatsApp channel is a hub for all the latest news and important issues that face the LGBTQ+ community. Simply click on this link, select 'Join Chat' and you're in! Don't forget to turn on notifications! No matter how accepting you are, coming out is nerve-wracking. Most LGBTQ+ people will remember the anxiety before telling their loved ones. Although I have a supportive family, months of thinking 'but what if they don't react well', was mentally exhausting and led to my breaking down once I finally did open up. Just saying 'thanks for telling me' goes a long way. As tempting as it might be to share the news, please don't. It can be a bit daunting turning up to a family gathering and finding out most of them know already (as I found out). Outing someone without their say-so is an obvious no. It takes away their control and can cause all sorts of internal chaos. Let them decide when and who they tell, and offer to help to make things easier. Parents often say: 'I just don't want life to be harder for you.' It's a valid concern. But honestly, most of us already know that. We're not looking for a warning or to think about how much easier our lives would be if we were straight, just show your love and support. Being the only gay friend can be isolating. I spent years listening to straight friends delve into their boyfriend drama and couldn't always relate (and still can't). Encouraging your child to connect with LGBTQ+ friends, spaces and online support can help them feel less alone. Even take them to their first Pride event, if they haven't gone to one. It'll be eye opening for the both of you. It's okay to be a bit awkward. It's not the easiest news to share or receive. More Trending Asking questions shows you care, just keep it respectful and avoid making it feel like an interrogation. Avoid asking: 'Are you sure?'. Even if they're not, you don't want to patronise them. And don't pry about details you wouldn't if your loved one was straight.I didn't want to answer my mum's question: 'Have you got a girlfriend? — something I think I probably had in common with every other teenager when their parents asked about their relationship status. The best thing you can do is listen. Let them talk without butting in or trying to fix everything. You don't need to have the perfect response right away, but just keep the door open for more conversations. Alex Matheson, director of inclusion at LGBT Foundation shared some helpful advice with Metro. Seek out additional support for you and your child. There are tons of free resources for LGBTQ+ families that can offer guidance and advice. LGBT Foundation has been a friend to LGBTQ+ people and allies since 1975. For more support, call the Helpline at 0345 3 30 30 30 or visit – we're always here for you. Know that your child is coming out because they're hoping for your support and understanding. You may be surprised or confused, but it's important to process these emotions away from your child – your initial reaction may read as disappointment. Be sure to affirm their identity and thank them for sharing with you. Ask if there's anything specific you can do for them. Every experience is different, and they may want help telling others, navigating issues at school, or finding support systems that work for them. Commit to being an ally to the wider LGBTQ+ community. If you're not familiar with the terms they're using for their identity, take the opportunity to learn something new! Look into local community groups, pride events, and LGBTQ+-friendly spaces. Be open to them exploring their identity further. They might want to try out different clothes, names, pronouns, and more. Encourage them to find out who they are and stay positive throughout the process. They're not 'too young to know', they're taking their first steps on this journey, and need you by their side. Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@ MORE: Tom Daley partners with Reiss on exclusive Pride Collection – with proceeds going to charity MORE: A doctor said no one would ever love me – I proved him wrong MORE: Miley Cyrus sparks backlash after 'abhorrent biphobic' joke about JoJo Siwa Your free newsletter guide to the best London has on offer, from drinks deals to restaurant reviews.
Press and Journal
2 days ago
- Press and Journal
Could I really lose my home to care fees?
We will all have heard that care fees in later life can place us at risk of losing our home, but do we really understand why or how that can happen? Have we given the issue the thought and consideration it merits? Probably not. Some Press and Journal online content is funded by outside parties. The revenue from this helps to sustain our independent news gathering. You will always know if you are reading paid-for material as it will be clearly labelled as 'Partnership' on the site and on social media channels. This can take two different forms. This means the content has been paid for and produced by the named advertiser. This means the content has been paid for and approved by the named advertiser but written and edited by our own commercial content team. The chance of you ending up in care is constantly rising. According to the Office for National Statistics it is currently estimated that one in four people over the age of 60 will end their days in care. It is predicted that this will rise to one in three by 2030. The cost of care can be up to £75,000 annually. When you consider the threshold for council support with fees is set at just £32,750, with your home included as one of your assets, the threat to your property is clear. Although you cannot deliberately deprive the local authority of care fees, there are legal ways to safeguard your home from being taken to cover care home fees, and that's through Protected Property Trusts (PPT) or Transfers. In basic terms, setting up a Trust or Transfer lets you give ownership of assets to someone else in order to protect them, manage them or distribute them according to your wishes on your death. This can protect your property from being taken from you to pay care home fees. Tony Marchi, principal at ILAWS Scotland, says many people underestimate the threat to their property. As estate planners, ILAWS are experts at advising customers on their best course of action and put in place PPTs and Transfers for hundreds of clients every year. However, Tony and his team also receive calls from people who have left it too late to put the appropriate protection in place. There is nothing they can do once you or your spouse requires residential care. That is why it so important to take action now to mitigate the risk to your biggest asset. 'It's a misconception that you can't lose your house, or that you will lose half your house,' said Tony. 'That is not the case. If you jointly own a home with your partner or spouse and one of you goes into care, you can lose the whole house. 'Usually when people joint own a property in Scotland, they own it with what is called a survivorship clause in there. That means when one of them dies, immediately the other person becomes the sole owner. 'For example, if a husband goes into care and he owns a house jointly with his wife, if she dies first, he will end up being in care and owning the whole house. That's how joint ownership works – your Will isn't even enough to change that; your Will would not supersede the title deeds.' More than ever before our children are relying on their inheritance for financial security, but without putting in place a PPT or Transfer that inheritance isn't guaranteed. 'You spend a lifetime getting to the position of owning your property outright,' explained Tony. 'Possibly one of the reasons you wanted to buy your house was to pass it onto your children, but you can lose it so easily and so quickly. 'Time is of the essence, do it now and then you can breathe a sigh of relief – just like when you paid your mortgage off – but with the knowledge that your property is safe.'
