Paying for care
Some points to note
- You should start with a care assessment, to work out the care required, followed by a financial resources assessment. Everyone is entitled to be assessed by the local authority to determine the care you need and whether you will need to pay for it.
- If you are moving into a care home and are selling your property, remember that there is a 12 week property disregard. The local authority must ignore the value of your home and help with your fees, as long as your other savings are below the means test limit.
- Couples should consider splitting their joint savings accounts - if only one goes into care, state support is assessed on just that one person's assets.
- Remember to claim for attendance allowance - this is not means tested.
- Consider arranging a lasting power of attorney whilst you can, so that others can look after your affairs if you are unable to do so in the future.
- Choose a home you can afford - it can be traumatic having to move at a later date because you can no longer afford it.
Knowing your care fees will be paid for as long as they are needed is vital, and provides peace of mind for both the person in care and their relatives.
Once the cost of care is known, you need to work out how to finance the shortfall - this is where we come in.
Knowing how much is required, we can now discuss how this is to be provided. You may need to consider using your home to raise capital or generate income. Selling your home means it is one less thing to worry about and raises capital, which can either be invested to provide income or used to purchase a care fees payment annuity.
Others may consider renting the property - generating income but this needs management and maintenance.
If you are receiving care at home, an equity release may be considered, either for a lump sum or to be paid in stages.
Everyone's circumstances are different, which is why specialist advice is required to ensure the right route is chosen - our specialist advisers are waiting to help you.
The next step is to call us on 01376 564660.