Couples and partners often worry about paying for care home fees. Changing the way you hold property and assets into Tenancy in Common AND writing appropriate Wills, can shelter some of your assets from such fees. However, because you don’t know who will die first, you both need to write a suitable Will.
Couples owning beneficial interests (e.g. a house, bank accounts, etc.) hold them either as joint tenants or tenants in common:
Joint tenants – When one dies, his/her beneficial interest passes automatically to the other who then owns the assets outright;
Tenants in common – own specific shares, equal or unequal. When one dies, his/her beneficial interest does not pass to the other automatically. Instead, it passes under the Will (or the intestacy rules if there’s no Will).
You need to be clear about the differences between ‘joint tenants’ and ‘tenants in common’ to allow for an informed decision according to your individual situation. For example, it could affect tax bands or capital beyond means-testing in relation to care home fees.
Rothera Dowson can prepare the necessary documents to change from ‘joint tenants’ to ‘tenants in common,’ and, if required, advise on taxation implications.
Wills, probate and trust
