The cost of residential care in old age is a daunting prospect for many, especially for those with children to whom they want to leave their properties. While it is possible to transfer equity while you are still alive, there are strict rules about how this is done, and it can have a lot of implications if you end up needing care in the future.
Currently, anyone with assets of more than £23,250 is liable to pay towards the cost of their care. This can include the value of their home, which many see as unfair and therefore decide to transfer ownership while they are still alive.
However, Age UK strongly advises older people to be cautious about transferring their property to children. This is because a local authority may think they have deliberately done it to avoid paying for care. This is known as deprivation of assets and is not allowed.
Fortunately, a transfer of equity specialist can help to ensure your assets are protected. If you are looking for a transfer of equity solicitor to guide you through the process, there are many available, such as at www.parachutelaw.co.uk/transfer-of-equity-solicitor. They can help mitigate against deprivation of assets and avoid the value of your property being taken into account when calculating how much you have to pay in care home fees.
If you want to hand over your property to someone else, you’ll need to put it in trust, but there has to be a good reason for doing this. There are three main types: an Interest in Possession Trust, a Life Interest Trust and a Protective Property Trust. All of these are complicated and require expert advice to make sure you comply with the rules.