The House Trust can also be used to protect your share of your property for your children or other chosen beneficiaries should your spouse or partner go into long term residential care after your death.

If your surviving spouse or partner were to go into a care home after your death, the family home may need to be sold to pay for care fees. Without the benefit of a House Trust the whole of the sale proceeds could be used to pay for your surviving spouse or partner’s care. However, by having a House Trust in your will, your spouse or partner will not inherit your share of the house outright meaning that if it is sold, the sale proceeds cannot be used to pay their care fees.

Important note: Care Home Fee Avoidance

You cannot avoid paying care home fees simply by transferring your house into the names of your children or other relations while you are alive. If you do this the authorities will consider that you have transferred the property to deliberately avoid paying care home fees and will assess you as if you still own the asset.

This could result in a situation where you do not have enough money to pay the fees. There are other reasons why we would strongly advise against transferring your home into someone else’s name resulting in loss of security and ultimately loss of the asset.

If you are thinking about transferring your property into someone else’s name, please contact us for advice.