A move into care is a significant life change, and it often prompts people to think seriously about their estate for the first time. Probate can look complicated from the outside, but a handful of sensible steps taken now can spare your family a great deal of stress later. Getting early advice from qualified probate solicitors is the best way to make sure your plans fit your circumstances. Here is a plain guide to probate for older people planning ahead before a move into care.
Key Documents to Put in Place
Start with the core set of documents that will guide your affairs once you are no longer able to make decisions yourself:
- A signed will, stored somewhere your family can find easily
- A Lasting Power of Attorney for property and financial affairs
- A Lasting Power of Attorney for health and welfare, or an advance decision setting out your wishes on end-of-life care
- An up-to-date list of your assets, accounts and debts
Missing even one of these can leave your family relying on the courts to work out what you would have wanted.
Understanding How Probate Works
Probate is the legal process of proving that a will is valid and giving your executors the authority to deal with your estate. In England and Wales, the executors apply to the Probate Registry for a grant of probate. Once that is issued, they can gather in the assets, settle any outstanding debts and taxes, and pass on what remains to your beneficiaries.
It is also worth thinking about your digital footprint. Bank logins, cloud storage, subscription services and small business accounts can hold real value or important information. Make a note of what you have and who should be able to access it, and store that record securely somewhere your executors will know to look.
Choosing an Executor You Trust
The person you appoint as executor will be responsible for administering your estate. It is a role that calls for someone level-headed, organized and trusted by the rest of the family. A poor choice can drag the process out for months.
When deciding, think about:
- Can they act calmly and fairly under pressure?
- Will your family accept their decisions?
- Do they have the time and appetite to take it on?
Once you have chosen someone, tell them, and walk them through your affairs. Executors who already understand your wishes find the process far less daunting when the time comes.
Reducing the Complexity of Probate
You cannot always avoid probate, but you can take steps during your lifetime that make administering your estate simpler and more tax-efficient:
- Hold your home with your spouse or partner as joint tenants, so it passes to them by survivorship
- Nominate beneficiaries directly on pensions and life insurance policies where possible, so these payouts sit outside your estate
- Make lifetime gifts, bearing in mind the 7-year rule for inheritance tax
- Consider whether a trust is appropriate, though this needs proper legal and tax advice before you act
How Care Costs Can Affect Your Estate
Moving into care can significantly reduce what is left in your estate. Residential and nursing care in England is expensive, and if your capital sits above the upper threshold set by your local authority, you are expected to fund your own care in full. In practice, that often means drawing on savings, investments and, in some cases, the value of your home.
It is understandable that many people think about passing assets to their children before a move into care, in the hope of preserving more of the estate. However, local authorities can look closely at any transfer made in the run-up to a care assessment. Under the deprivation of assets rules, if the council decides you gave away property or money to reduce your care fees, it can treat you as if you still owned those assets when calculating what you should pay. There is no fixed time limit on how far back it can look.
The safer approach is to plan early, take advice from a solicitor who specializes in care fees and estate planning, and keep clear records of your reasons for any gift or transfer. Steps taken years before care becomes a realistic prospect, and for reasons unconnected to fees, are far less likely to be challenged than last-minute transfers.
Looking Ahead
Getting your estate in order is one of the most valuable things you can do for the people you love. A move into care should not have to mean a scramble through paperwork at the last minute. The sooner you begin, while you are well and your choices are clearly your own, the more control you will have over what happens next.
Legal Disclaimer:
This article provides information only and is not legal advice. It is advised to speak with a licensed estate lawyer before you act on any point raised here.