If you, or a relative, are self-funding paying for care then the most important thing is that you understand what the state will provide. When self-funding it is vital to get independent financial advice from a care fees expert to ensure capital and savings are preserved.
What to consider when paying for care
When planning paying for care it is important to consider meeting the cost of care but also preserve as much of the estate assets as possible. Our care fees advisers will carefully consider with you all the available funding options. These options include annuity purchase as well as releasing equity from the property.
In England anyone with more than £23,250 will not qualify for financial assistance from their local authority.
Do you understand the following:
- 12 week Property Disregard and Deferred Payment Agreements
- State Benefits you can claim when paying for care
- NHS Continuing Healthcare & Funded Nursing Care
We Do – So call us for help on how to pay for care
Getting it wrong can be very costly so seek our expert advice on how to meet the cost of paying for care.
The decision to move into a care home, or to help a loved one move into one, is a very big decision. Certainly, there are some emotional elements to this transition. To help make it easier, it is important that all involved clearly understand the practical and financial aspects of this move before the decisions are made. In the United Kingdom, care home costs are subsidised by the state, for those within the qualifying income bracket.
The process of moving into a care home involves first being assessed as needing to move into a care home. If it is agreed that is the best option for you, a financial assessment is done to determine home much state assistance you are eligible for. This is done by your local council. They will look at your income and capital in order to determine eligibility.
Your capital would include savings, investments, and property owned. In the case of a couple, only half the joint assets are taken into account, though there are some exceptions to that. If your capital comes in at or below £23,250, you will be entitled to financial support toward the cost of your home care fees. If your capital is £14,250 or less, you are eligible for the maximum financial assistance towards the cost of your home care.
If your capital is above £23,250, it will be assessed that you are able to cover the full cost of your home care. However, no matter how much you are expected to contribute towards the cost of your home care, the State requires that you always be left with £22.30 per week, to use in any way you choose.
These amounts apply to England’s figures. Scotland, Wales and Northern Ireland have slightly different numbers.
For those who are self-funding home care costs, there are some other forms of assistance available. For example, if other than your property, your capital comes in at £23,250, or less, the local authority will cover the costs of your home care for the first 12 weeks. This is to enable you to sell your property, without the burden of the costs of the care home, while your home is being sold.
You do not necessarily have to sell your home. In some cases, the local authority will allow you to borrow against the value of your home. However, they may limit how much they will allow you to borrow, and it could also interfere with other benefits you may be entitled to.
In cases where the care home you choose costs more than what the state will cover, a third party is allowed to pay the difference. The stipulation being that they are able to sustain the “top up” for the long term.