people in nursing home feature

Do Trusts Protect Assets from Nursing Homes?

When it comes to protecting your assets from nursing homes and the relatively high fees that can come with such a service, lots of people will be happy to offer you their uninformed opinions and insights. Ultimately, the only people you should be heeding the advice of when it comes to delicate subjects like this are the experts. 

A trust can be a useful tool for protecting all manner of assets in a variety of situations, including from nursing home fees. Assets that can be held in a trust, includes but is not limited to:

  • Money
  • Stocks
  • Family Heirlooms
  • Real Estate
  • Businesses
  • Land

This blog will detail the average cost of care in the UK, answering the question of how a trust can protect your assets. It will also discuss what is, and how to set up an asset protection trust, likely the most secure form of trust possible to protect your assets against any eventuality, including care home fees.

What is the Average Cost of Care in the UK?

The estimated average weekly cost of care in the UK is believed to be around £700 for care homes, and £888 for nursing homes. How much you will ultimately go on to pay for your care will depend on a few factors, including where you live, what level of care you need, how much you have saved, and more. 

These averages add up to just under £3,000 per month for residential care, and over £3,500 for nursing care. Nursing care is  more expensive due to the expertise of care, skills, and equipment needed. 

pound notes in wallet to signify paying for nursing home fees

Additionally, you will need to pay different amounts should you require other types of specialist care such as home-based care, care homes with dementia care, dual registered homes, etc. 

Making sure that you’re aware of the average costs of care home fees for your needs and for your area is vital in ensuring that you are able to prepare appropriately. 

Does a Trust Provide Asset Protection? 

One of the main purposes of a trust is to protect assets. A well-crafted estate plan including a trust can be vital in ensuring that assets are safe from anything and ready to be passed onto beneficiaries with minimal issue. Absence of a detailed estate plan can lead to a lack of protection for your assets. 

The most simple explanation for how a trust provides asset protection is rooted in the fact that in essence, once an asset is assigned to a trust it is technically no longer deemed to be your personal possession. This will secure it from creditors, legal issues, inheritance tax, and more. 

When it comes to protecting your assets from nursing homes, the most effective trust vehicle is an asset protection trust — commonly deemed to be the strongest protection you can get for your assets.

What is an Asset Protection Trust in the UK ?

Also referred to as a family protection trust, an asset protection trust is designed to protect your home and other assets from being sold against your wishes for any reason — affording you much greater control over your estate for the duration of your lifetime. 

checking through contract to signify an asset protection trust document

A properly structured asset protection trust should see to it that no unwanted parties will be able to reach anything held within the trust. Other advantages of an asset protection trust in the UK includes: 

  • Potentially avoid any additional expenses, stress, and delays that will come with probate 
  • Protect assets for children/grandchildren in the event of the breakdown of a marriage 
  • Should one of your children divorce, with an asset protection trust you can be sure that your possessions will only go to a blood relative (children/grandchildren) 
  • An asset protection trust will prevent potential claims against your estate — avoiding any lengthy court proceedings 
  • Significantly minimise inheritance tax 
  • Disabled children or dependents relying on benefits will not be affected by anything held for them in a trust

How to Set up an Asset Protection Trust 

While it is technically possible to set up your own asset protection trust, the wording of a trust must be precise in order for it to be considered truly legally binding. For this reason, it is always heavily recommended that you contact a legal professional to set it up on your behalf.  

The cost of an asset protection trust will be based on the complexity of your circumstance and your estate. For this reason, Just Wills and Legal Services will discuss your specific needs and wishes, and advise you accordingly on what the costs will be.

How Just Wills and Legal Services can Help Protect Assets From Nursing Homes

Protecting your assets against any eventuality should be a top priority for anybody planning for the future. The most important thing to consider when estate planning is that your loved ones are taken care of, that assets reach them, the process goes through efficiently and with minimal stress, and there are no unnecessary costs. 

shaking hands to signify setting up a trust

Ultimately, the assets you leave for loved ones should be seen as your legacy — something your loved ones can use to remember you. The last thing you would want is for everything to end up tied into paying care home fees.  

Unfortunately, if you don’t set out your estate plan properly these care home fees can cut a large chunk into what you can leave behind for your nearest and dearest.  This is why, when it comes to estate planning, you should never leave anything to chance.

At Just Wills and Legal Services you can be assured that you will be in the right hands throughout your dealings with us. Our team has years of experience in assisting people with preparing their estates and protecting their assets from all manner of potential issues, including protecting assets from nursing homes. 

Get in touch with a member of our team today to find out more about what we can do for you and to discuss what options are available.

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