Chancellor Jeremy Hunt has rejected calls to reduce inheritance tax in his autumn statement. Instead, he has decided to leave rates and allowances at the same level as they have been for the last three years. Inheritance tax is set at 40% and becomes payable once the tax-free threshold of £325,000 has been passed. There
The average stay in a care home is approximately 2 1/2 years [*LaingBuisson, Care of older people: UK market report, May 2017, p. xxiii] and the costs are typically £82,000 over that period of time. Planning for the potential care fees can ensure that your family and loved ones receive some inheritance when you die.
Should you require full-time residential care you will be expected to pay for your own fees where your capital exceeds £23,250. Whilst there is no safe way of avoiding paying care fees, there are measures that can be put in place to protect your estate. Planning for care fees may involve reviewing and amending your and your partner’s Wills to establish trusts which will provide some asset protection.
We can review how your estate is structured, consider how your home is owned and ensure that you are aware of any future liability. We can then take steps to protect your home and other assets.
We can provide practical and proactive advice to ensure your family wealth is protected.