Protecting your Property

The most valuable asset in most people’s estates tends to be property – the family home.

On death it is usual to want to pass your share of the family home over to your partner or spouse with the intention that they then pass it on to your children however; there are a number of issues which could prevent that from happening. The family home can easily disappear in a sideways transfer.

For instance, have you considered what would happen if any of the following issues happened to your surviving spouse/partner after your death?

Enters a Bankruptcy?

If a person is bank subject to a bankruptcy order, the Trustees of the insolvency can force the sale of any property they owned and use the proceeds of the sale to repay their creditors.

Updates their Will?

They are entitled to have a change of heart. Therefore, in the future, a simple update to their Will could completely disinherit the beneficiaries you agreed on together in favour of somebody else entirely.

Gets married?

Have you considered what would happen if your partner re-married?

A new marriage or civil partnership would automatically revoke any existing Will provisions they had. This means that the plans you had made together would be null and void.

The new matrimony could result in the family home passing sideways to the new spouse/civil partner and not down to your children as previously agreed.

At this point the children could lose out on their inheritance completely.

Requires Long Term Care?

If at some point in the future, you need any form of care provision from the Local Authority, the value of the assets you own will be used to determine how much you need to contribute towards this cost of care.

If you have assets (including your family home) over the value of £23,250.00 you will be forced to meet the full cost of care without any assistance from Local Authority funding.

It’s arguably a grossly unfair system because those who have not accumulated such assets will have their care funded in full by the Local Authority.

The sale of property to fund long term care can wipe out the value of the estate that was intended to pass to your loved ones.