Long Term Care Funding Explained

1 in 3 women and 1 in 4 men over the age of 65 eventually go into care and it is expected that one half of them will require long term nursing care. It is anticipated that the percentages will only increase. The Local Authority Social Services department financial assessment will decide how much that you will have to contribute towards the cost of your care. The assessment includes what income / benefits you get and also your capital, such as savings and the value of your home.

Some benefits may be excluded from the means testing and in certain circumstances the value of your home may be disregarded. Any one with capital, after any disregards, exceeding £23,250 (correct as of April 2020 for England) generally will be liable to meet 100% of your care fees for residential or nursing homes.

The value of your house is calculated as its present market value less any mortgage on loans on it and less any anticipated selling costs. If your property is going to be included in the means testing assessment, for the first twelve weeks of permanent care, the Local Authority must ignore the value of the property is, however after this period, if the house is not sold a legal charge can be put on it and they can claim back what is owed when the house is sold.

You may think about giving away some of your savings, income or property to avoid paying future care costs, to your family. If the council believes that you have done this to avoid paying care fees they may still assess you as if you still had what you have given away. This is known as deprivation of assets. Beware that they can go back many years, not just 7 years, as some people believe.

Immediate Care Plan’s are available to pay for your care, however these can be very expensive and not usually the answer that people are looking for.

With careful planning at the right time and with the right advice, Will Makers of Ashton are able to provide protection of your assets through Will Planning and Family Protection Trusts.

Phone Number

01942 276780

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