Whilst you may be eligible for financial help from your local authority or, in some circumstances, from the NHS, there is a detailed assessment which needs to be carried out before a determination is made.
Many people do not qualify for this financial help and so the local authority will carry out a financial assessment otherwise known as a means test to ascertain your income and capital, which includes valuing all your assets such as your home, other properties, savings and investments.
In Wales, if you have capital assets collectively valued at more than £50,000 then you will be expected to pay full care costs fees, which is known as self-funding. In England, this figure is just £23,250.
Many people are forced to sell properties or investments to release capital to meet the monthly care costs.
Therefore, it is only natural that people are looking at protecting their assets, especially if they wish to leave their family home to their children. Many people will also seek financial advice about their income and ensuring that their investments are achieving the best income for them, remember your income can be offset against the monthly care costs.
People often overlook the impact paying monthly care costs might have on their spouse or partner who continues to live at home but who has, for many years, relied on their joint income with their spouse/partner.
Whilst there are alternatives to going into a care home such as domiciliary care and having care at home, the threshold for capital in this type of arrangement is even lower.
Some people believe that having a Will in place is all that is required from them, sadly, that is not always the case, there is much further planning that can take place to at least try to protect assets or place you in the best position to meet monthly care costs. This is why early planning is required for you, your partner and family. We strongly recommend that you speak to our Estates and Trust team to explore the best options available to you.
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