Protect 50% of Your Property with a Tenants in Common Agreement

If you’re worried about how care home fees could affect your home, you’re not alone. Many couples face the risk of losing their property to cover care costs. However, there is a way to safeguard your assets. By holding your property as Tenants in Common, you can protect 50% of your home’s value, ensuring that it remains secure for your family.

What is a Tenants in Common Agreement?

A Tenants in Common agreement is a legal arrangement that allows property ownership to be divided between two or more individuals. Unlike a joint tenancy, where the property is owned equally by both parties and automatically passes to the other upon death, a Tenants in Common arrangement means each party owns a distinct share of the property. This can be an equal or unequal share, depending on the agreement.

How Can a Tenants in Common Agreement Protect Your Property?

One of the key benefits of owning property as Tenants in Common is the ability to protect a portion of your home’s value from being used to pay for care home fees. Here’s how it works:

Preserve 50% of the Property: If one spouse moves into a care home, only their share of the property may be considered for care costs. By severing the joint tenancy and becoming Tenants in Common, the remaining spouse can protect their 50% share of the property, which will not be included in the financial assessment for care fees.
Safeguard Your Family’s Inheritance: If the care home fees are paid only from one spouse’s share of the property, the remaining half can still be passed on to children or other beneficiaries, ensuring your family’s inheritance is protected.

What Happens If I Don't Take Action?

Without the protection of a Tenants in Common agreement, your entire home could be used to cover care costs if you or your spouse requires long-term care. This could leave your family vulnerable and your home at risk. Taking action now could mean the difference between keeping your property in the family and losing it entirely.

Is a Tenants in Common Agreement Right for You?

A Tenants in Common arrangement is particularly beneficial for couples or co-owners who want to ensure their property is protected from care fees. It allows you to control how your share of the property is handled and ensure that 50% remains intact, even if the other party needs care.

However, this is not a one-size-fits-all solution. Every situation is unique, and it’s important to consider whether this is the right estate planning strategy for you.

Next Steps: Speak to an Estate Planner for Free

If you’re concerned about care fees and how they might affect your home, it’s essential to get advice from an expert. At Viva Planning, our estate planners can help you navigate your options and determine whether a Tenants in Common agreement is the best way to protect your property.

Request a free, no-obligation call today to speak with one of our estate planners and secure your family’s future. Simply [fill out this form] and we’ll get in touch to help you take the next steps.