The modern family can often pose complex issues, particularly in how to provide for both a new spouse and children from a previous relationship.
The population is living longer and, as a result, long term care is often required in later life. Care home fees can severely deplete funds that have been built up over a lifetime.
A Life Interest Trust in favour of your spouse can effectively ‘ring fence’ the assets put into the Trust. This is particularly effective for your home as it would enable your spouse to live in the property for the rest of their life rent free (or an alternative property if they need to downsize or move to something more suitable in old age) and then, on their death, the property can pass to your children.
Property held in Trust is not taken into account in the assessment of the contribution to be made towards nursing home fees under the current legislation.
If you are interested in learning a little more about Life Interest Trusts please telephone 01935 817736.