Long Term Care Planning

As we grow older, the idea of going into a care home becomes a prospect that many people will need to address.. It is possible for a couple to protect a portion of their home they own in which they  live from care fees.

Some people are concerned that they will have spent all of their money on their care fees leaving no inheritance for their chosen beneficiaries.

Even if leaving an inheritance is not your priority you may be concerned as to how you will cope with old age and avoid becoming a burden on your partner or family while paying for your own care.

According to statistics:

  • 4 in 10 people in care homes pay for themselves
  • The average cost of a residential home is £37,440 a year
  • The average cost of a nursing home is £38,736 a year
  • Almost 50,000 elderly people who do qualify for means-tested council-funded care are forced to make up the shortfall between that funding and care home fees.

Local Authority Assistance

If you become unable to look after yourself, and you require care either in your home or in a residential home, your Local Authority will assess your care and financial needs.

If you have capital of more than £23,250 (which can include your home, but it may be excluded from an assessment in specific circumstances), you will be entirely self-funding. If you have capital of more than £14,250 you will be expected to partly fund your care.

The care cap, capping care fees at £72,000 which was to be introduced in April 2020 has now been abolished by the Government with no fresh proposal.

Protecting your Assets

If one of a married couple or registered civil partnership goes into care, and their partner remains living in the house, the local authority disregards the value of the house when assessing the contribution to care fees.  There are other limited circumstances where the house may be disregarded.

However, if one of a couple dies and the house passes to the survivor, who then goes into care, the whole of the value of the house will be available to pay for care fees.  This can be avoided without affecting the security of either of you, by changing your Wills and by a simple alteration to the title of your property.  This is a very effective way of preserving a portion of your Inheritance.

Therefore if you do wish assistance with protection from care home fees, please get in touch.