Estate planning: how to protect your home and assets
Many of us worry about what will happen to the family home if we need care later in life. It is one of the most common reasons people come to us to make or update a Will.
Families aren’t always able to meet these care needs, so if you’ve been cautious with your money, own property, or have savings, it’s likely that you’ll be liable to pay at least some of this yourself.
This is where careful estate planning can make a real difference. It helps you decide who looks after your affairs, who inherits what, and how much of your wealth goes to your loved ones rather than being lost to care costs or tax.
What is estate planning?
Estate planning means making decisions now about what happens to your home, savings and belongings in the future. It usually includes:
- A Will, which says who inherits your property and who will deal with your estate.
- Lasting Powers of Attorney. These let someone you trust make decisions for you if you lose the ability to do so yourself.
- Trusts, which can ring-fence part of your assets for your family.
- Inheritance Tax planning, which helps you pass on as much as possible.
Why the family home matters
An ageing population means more of us will likely need care in later life. Families can’t always provide it, so if you own your home or have savings, you may have to pay towards care yourself.
In England, the local council carries out a financial assessment to decide how much you pay. Your home can be counted in that assessment, and if your savings and assets are above the national limit of £23,250 (2026/2027), you may have to pay the full cost.
This does not automatically mean selling your home. How your property is owned, and what your Will says, can change how much is counted.
Case study: smart estate planning
Our clients, Mr and Mrs Weston, are married with three adult children and two grandchildren. They jointly own their home, have joint savings and have money to invest from Mr Weston’s retirement pot.
With Mr Weston due to retire, the couple wanted to put their financial and legal affairs in order. This included reviewing their Wills and setting up Lasting Powers of Attorney.
Our solicitors advised Mr and Mrs Weston to make Wills that would safeguard half of the value of their property to benefit the survivor for their lifetime and ultimately for their children. They would each hold their own shares of the property to help fund care if this were needed in the future.
What we did
We severed the joint tenancy on their property and constructed their Wills so that upon the first spouse’s death, the survivor was able to remain in their home until their death.
Here’s what our solicitors did:
- We changed the way they owned their home from joint tenants to tenants in common. This means each person owns a separate half share.
- We wrote their Wills so that when the first spouse dies, the survivor can stay in the home for the rest of their life.
- We arranged for the first spouse’s half share to be held for their children or grandchildren.
If the surviving spouse later needs long-term care, for example in a care home, they would only be assessed as owning half the property. The other half would be protected. If they never need to pay for care, the property simply passes to the family as set out in the Wills. We also reassured Mr and Mrs Weston that Inheritance Tax wouldn’t be payable on the first death and, due to the transferable nil rate band and residence nil rate bands, it was unlikely to be an issue on the second death.
Can the council take my home to pay for care?
Not automatically. The council can include the value of your home in a financial assessment in some circumstances, but there are rules that protect it, for example, while a spouse or partner still lives there.
I’m in good health; is it too early to plan ahead?
It’s never too early. The earlier you start with estate planning, the more options you have. Writing your Will, making a Lasting Power of Attorney or setting up a Trust while you have mental capacity means you stay in control. Get started on our Later Life Planning hub.
How often should I check my Will?
It’s a good idea to review your Will every five years or so, and after any big life change, such as retirement, a new grandchild, divorce, remarriage or the death of your spouse. Read more about when to write or update your Will.
Speak to our estate planning solicitors
Protecting assets and safeguarding your home and property against care fees often drives people to update their Will or make a Will or LPA for the first time.
Speak to our estate planning solicitors in Bristol on 0117 325 2929 or complete our online enquiry form. You can also get a Will quote here.
