Many families worry about what will happen to their home and savings if a loved one needs to go into care. Care home fees can be very expensive and may quickly reduce the inheritance you’d like to leave behind.

An Asset Protection Will is designed to help with this. It allows you to pass on your assets in a way that supports your spouse or partner during their lifetime, while also protecting part of your estate so it can go to your children or other chosen beneficiaries in the future.

How does it work?

Here’s a simple example:

Fred and Mary are married and have two children.

  • Their house is worth £400,000.

  • They have £50,000 in savings.

  • They want everything to pass to each other when one dies, and then to their children after both have gone.

If they had Simple Wills:

  • Fred dies first, leaving everything to Mary.

  • Mary now has £450,000 in her name.

  • If Mary later needs care, the Local Authority would assess her full £450,000 to calculate fees.

  • Over time, care costs could use up a large part of the children’s inheritance.

If they had Asset Protection Wills:

  • When Fred dies, his half of the house goes into a trust.

  • Mary still has the right to live in the house for the rest of her life.

  • If Mary later needs care, only her share of the house (£200,000) and the savings (£50,000) are counted.

  • Fred’s half of the house is protected, as it belongs to the trust and not to Mary.

  • When Mary dies, the children inherit Fred’s share of the house plus whatever remains of Mary’s estate.

What about the trust?

The word trust can sound complicated, but in this case, it’s straightforward:

  • Usually, we place the family home into the trust, as that’s the main asset people want to protect.

  • The surviving spouse keeps the right to live there for life.

  • Savings are often left outside the trust so the survivor has money available to spend as needed.

This way, you can be confident that your partner is cared for during their lifetime, while also ensuring your children or loved ones receive a meaningful inheritance later on.