How can I protect my children's inheritance
if I need long-term care in the future? 

In the final part of our long-term care series, we look at how your children’s inheritance could be affected when it comes to funding your future care needs.

We’ve looked at the options available when it comes to funding long-term care, but in the instance where the care bills could cut into your children’s inheritance, what can you do?

If you can’t afford long-term care privately, then a local authority must fund your care. However, this access to funding could be based on how a local authority defines the term ‘afford’, often leaving those needing care vulnerable to financial strain during an emotionally difficult time.

Currently, if your capital is above £23,250, you’re likely to have to pay for care fees1. Below that capital threshold, you may be entitled to some help from your local authority, but a contribution may still be needed towards the fees.

For parents, protecting your children’s and grandchildren’s inheritance is important, especially since you’ve worked so hard to give them a secure future. This is why it’s crucial to start thinking about possible future care needs and the effect this could have on inheritance now – before you need to fund your own care.

How can I protect my children’s inheritance?

Often, those requiring long-term care who aren’t entitled to financial help may need to sell their home to fund this. And when faced with a sick or frail parent needing urgent care, there isn’t much choice but to sell the house – an unwelcome worry for you and your loved ones at an already emotionally taxing time.

This is where thinking ahead and speaking to an expert financial adviser about your inheritance tax planning needs could prove invaluable. Safeguarding the family home – which, in some cases, maybe the only asset children will inherit – will need to happen before you require care to ensure your care costs don’t eat up the proceeds of the sale of your home.

A financial adviser will be able to advise you on suitable options to protect your children’s inheritance, such as purchasing an investment bond or looking at your property ownership situation. The suitability of these solutions will be wholly dependent on your circumstances.

Thinking ahead and speaking to an expert could help you put an effective plan in place to protect your children’s inheritance.

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