Care Costs
The Family Protection Trust
Whether you are planning early retirement or you are wondering how you ever managed to fit a job into a busy day, now is the best time to think about protecting your assets in the event of your needing care in later life.
It may be something that you do not want to think about, especially if you are in good health, but the statistics regarding long term care make for sombre reading.
1 in 3 women and 1 in 4 men currently go into care.
With our aging population, this figure could rise to as many as 1 in 2 of us in the near future (source: Help the Aged)
Average care home fees cost somewhere between £20,000 and £50,000 per annum depending on the level of care required.
Currently, to be eligible for care funding, your assets must not be worth more than £13,750 (£14,000 in England) and this includes the value of your home.
70,000 people were forced to sell their homes last year to pay for care costs alone (Source: The Guardian, 17th November 2007).
Two thirds of 45-65 year olds have made no financial plan to pay for long term care, or to protect their assets.
After a lifetime of hard work and prudence, you may have saved a sizeable nest egg towards your retirement and to be passed on to your family. However, as you can see from the figures above, it would not take long for your hard earned assets to disappear.
What Can You Do to Plan for Care Costs?
You have four options open to you:
Option 1 - Do Nothing
Hoping for the best means leaving a lot to chance, including your own security and your family's inheritance.
Saving on a trust arrangement fee today may prove to be a false economy as you leave yourself open to crippling costs late in life.
Option 2 -Handing Over Your Assets
Handing over your assets while you are alive may leave your loved ones open to substantial capital gains tax liabilities.
They may also lose any benefits to which they are currently entitled.
You will be vulnerable to family fallouts or divorce.
Option 3 - Purchase an Annuity
An annuity can be an option but it does mean spending a very large amount of money in exchange for a guaranteed annual sum that may not cover the full amount of your care costs.
You would need to speak to a Financial Adviser for further details as this subject is regulated by the FSA.
Option 4 - Remain in Control
Take out a Family Protection Trust.
The Family Protection Trust is designed to help protect your assets and avoid all of these problems and more.
For further information or or an appointment or home visit please email us at enquiries@mcclure-solicitors.co.uk or telephone us on 01475 888222