Nursing Home Fee Planning

Option 1: Do Nothing

• Low Probability: Only around 6% of people actually move into a nursing home.
• Pros: No immediate action or cost.
• Cons: If you do need a nursing home, the fees can quickly consume your home’s value.

Option 2: Change Ownership Structure

• Joint Tenants to Tenants in Common: Altering the ownership to tenants in common allows each spouse to will their share separately.
• Life Interest Trust: The surviving spouse can live rent-free, and only their half of the property is assessed for fees if they move into a nursing home.
• Pros: Lower cost, maintains flexibility while both spouses are alive.
• Cons: Only protects half of the property, and the arrangement cannot be changed after the first spouse dies.

Option 3: Full Life Interest Trust

• Transfer to a Trust: Place the home in a trust, allowing you to live rent-free for life.
• Protection: If you move into a nursing home, the capital value of the home is protected as it is not considered your asset.
• Pros: Comprehensive protection of the home’s full value.
• Cons: Higher cost, difficulty in altering the trust after establishment, potential limitations if you move to rented accommodation or sheltered housing.