Care Home Fees
Paying long term care fees
If you have to have long term care and your assets - mainly money and property - are more than £23,000 (tax year 2009/10) your local authority will require you to pay the full cost of the fees using your assets and income. Effectively the Local Authority can insist that your house is sold to pay your care home fees.
If your assets are between £14,000 and £23,000 your local authority will assess your ability to pay the fees considering both your assets and your income.
If your assets are less than £14,000 no contribution will be required from your assets, but most of your income will be required as a contribution.
Exclusions from assessment
If you deprive yourself of assets with the sole intention of avoiding their being assessed for care fees then they will not be excluded and the gift or transfer can be set aside.
If your spouse or partner (and certain other people) are still living in your house of which you are the sole owner, it will not be included in your assets to be assessed if you require long term care.
If you are only part owner of your house, because, for example, your spouse or partner, who died before you, left his/her share to his children and only left you the use of it for your lifetime, it will be excluded. This is because the value of your share is assumed to be nil (refer to the Government’s CRAG regulations, section 7.014).
How YourWill can help
YourWill can help you plan your family’s affairs so that in most circumstances your family home is not at risk to pay care home fees. As the need for long term care can arise at any time, it is never too soon to put appropriate arrangements in place. Contact YourWill today.
