Many families may be concerned about the care of elderly and vulnerable relatives, given the cost of care homes and care at home. Protection planning is one way of ring fencing property, savings and investments from being depleted by the cost of care.
Inheritance tax is currently 40% of any assets above £325,000 – and Local Authority care costs are currently applicable to anyone with assets valued at more than £23,500, with a reduced rate for those with assets of £14,250.
Given the spiralling cost of property, anyone with their own home and even modest savings or investments is likely to have to pay for their own care, leaving little left to pass on to family.
Protection planning for old age should begin as soon as possible – and certainly once you approach middle age, or have a family, property, assets or investments.
Assuming that you will be able to pay for care – or that you will not require extensive care – can be a risky strategy.
Protection planning can involve complex decisions about when to pass money to children, whether to set up trusts in wills – or whether to take out a financial plan, such as an annuity, to meet the cost of care.
In any decision, there are likely to be tax implications and pros and cons about passing assets to family before you need care.
It is vital to take expert legal advice on protection planning for old age – so that you can enjoy a comfortable old age and also receive any care you may need.
Duncan Lewis Wills and Probate solicitors can advise on strategies such as tenants in common for spouses and partners with a property, as well as trusts, inheritance tax and capital gains tax, international wills, and wills involving property, land or agricultural land.
Duncan Lewis also advises on Islamic wills made in the UK and international wills.
Duncan Lewis is uniquely placed to advise on wills and care for elderly and vulnerable family members – we have a well-respected family law division specialising in Court of Protection cases, and is also the UK’s leading firm of Legal Aid mental health solicitors.
We have offices nationwide and in most major cities – and we offer competitively-priced fixed fees for wills and probate matters, whenever possible.
For expert legal advice on wills, probate, protection planning and care for elderly and vulnerable family members, call Duncan Lewis Wills and Probate solicitors in confidence on 0333 772 0409.