Protecting your home
Most people who own their home with someone else do so as "joint owners".
This means they both own all of the property and on the death of one of the joint owners the survivor automatically becomes the sole owner of the property.
The sole owner can then do what they want with the property - this can cause problems:-
If the survivor has to go into a Nursing or Residential Home, as the sole owner of the property, the Local Authority has powers to charge the cost of care against the value of the whole house - thus disinheriting the children or other selected beneficiaries.
The answer to these problems is, in conjunction with your Will, to change the way the home is owned from "joint owners" to "tenants in common". This does not require a solicitor and does not involve the mortgage company if there is a mortgage on the property.
A "tenants in common" each owner owns 50% of the property and, using a Will, can do whatever they choose with their personal share of the property on their death:-
- Leave their share of the property to their own children or other selected beneficiaries so that if the surviving spouse/partner needs care the Local Authority can only charge the 50% share of the property owned by the person receiving care. This ensures that the children/selected beneficiaries inherit at least 50% of the value of the property.
- Leave their share of the property to their own children/selected beneficiaries so that if the surviving spouse goes on to remarry they can only give their own 50% share of the property to their new spouse/partner. Again, ensuring the children of the first marriage, or other selected beneficiaries, inherit at least 50% of the value of the property.