There are a number of ways we can minimise your properties exposure to the repayment of care costs.
Many local authorities are getting much more savvy and forceful when looking at recovering the cost of care provided by enforcing the sale of the property.
Then there's the matter of Inheritance Tax which may also be a problem when a property is given asa bequest in a Will. So let's take a look at what we can do.
So lets talk about a Property Transfer first.
You can introduce a new owner onto your property ownership so that your share of the asset value is decreased thus reducing your liabilities. You can introduce multiple additional owners if necessary and in some cases transfer the entire property to a new owner. Of course, this may not be possible if there is existing secured lending against the property.
The other option is to switch ownership from joint owners to Tenants in Common. This applied to a property owned by two people. By owning jointly you are actually owing the property at 100% as if you were one person. When we switch to Tenants in Common we then split the 100% down to 50% to each of you. This again reduces your exposure to the potential recovery of care costs in the future.
It can also be a useful tool for a situation whereby you wish to leave your portion to a third party in your will (maybe your children). This could be because you originally put more financially into the property when it was purchased.