For many families, the family home represents the majority of their wealth. It is also the asset most exposed if long-term care is ever needed. A little planning, taken early, changes the picture considerably.
The local authority assessment
When someone needs residential care, the local authority carries out a financial assessment. Assets held personally, including the family home in many circumstances, are taken into account. Assets held correctly in Trust are treated differently.
Family Gift Trusts
A Family Gift Trust is a lifetime Trust that lets you place gifts into a protected environment for loved ones while you are still alive. Every seven years you can settle up to £325,000; once that seven-year clock has passed, the gift sits outside your estate for tax purposes. The settlor cannot benefit from the funds once they are in the Trust.
Why act early
If you are later deemed mentally incapable by a medical professional, you can no longer make a Will or Trust, give substantial gifts or create an LPA, because there is no proof of competency at the time the decisions are made. Planning must be in place while you have capacity.
A coordinated view
Care planning is rarely a standalone decision. It sits alongside Wills, Trusts, LPAs and, often, investment planning through Ascot Wealth Management. We prefer to look at the whole picture, not one piece of it.