Care Home Funding is a hot topic in today’s society. An ageing population and longer life expectancy mean that unfortunately, it’s more relevant to most of us then we would like to imagine. Careful consideration should be given and action taken now to preserve your assets as best as possible and ensure your loved ones are in a position to assist if care becomes a reality.
The rules governing Care Funding are currently undergoing change. At present, in some limited circumstances, a person’s care needs and health will make them eligible for non-means tested care. In the majority of cases, those with in excess of £23,250 worth of assets will have to meet the full costs of care. Generally, individuals with less than £14,250 will receive Local Authority funding. Those with capital assets valued in between these figures will be expected to contribute towards their fees. In all circumstances, the Local Authority will carry out a financial assessment to determine an individual’s capital and income.
The Care Act
The new laws come into effect from in April 2015 and April 2016 and bring with them a host of changes to the current system.
From April 2016, the most significant change is the introduction of a lifetime cap on how much individuals will pay towards care of £72,000. Current thresholds for capital assets will also change but a ‘lifetime cap’ will not exclude individuals from paying any fees altogether. Daily Living Costs such a food, bed and board will be an additional payment and most will be expected to pay £12,000 a year towards such costs. There are also new rules governing your property and an option to defer payment of fees until after your death. If you require further information, our Care Home Funding Factsheets can help explain both the old and new rules in greater detail.
Williams Thompson Solicitors LLP specialise in future planning. Whether it be creating Lasting Powers of Attorney, Property Trust Wills or Management of Affairs, we can help mitigate the potential costs and ease the worry.