Planning for a future that involves long-term care is not something many people like to do. However, the average cost of staying in a residential care home in England in 2019-20 was £681 per week. Where nursing care is involved, the cost averages £979 a week. Both of these figures are likely to have increased further in recent times! Where long-term care is required, these costs can quickly accumulate; eating into the assets an individual has worked hard to build during their lifetime.
Here, Jill Waddington looks at the complex matter of care home fee planning, what reforms might mean, and what actions individuals can take.
When a person over the age of 18 enters care, they are asked to complete an assessment form to decide if, and how much, they will pay for their own care. Currently, any individual with assets totalling less than £23,250 will qualify for financial support from their local authority and anyone with less than £14,250 will not pay anything for their care.
In autumn 2021, the government unveiled its plans to bring in a lifetime cap on social care costs. The new scheme, which has a headline figure of £86,000 as a ‘cap’, could be applied from October 2023 in England.
The reforms also outline more generous means-tested support for anyone with less than £100,000 chargeable assets.
However, the new reforms have been widely criticised due to the fact that the cap on fees does not include costs such as room and board in a care home, or utility bills.
Further clarification is needed on the new reforms and how they will work in various scenarios. However, it is clear that despite the ‘cap’, there will still be a significant level of fees to fund for many people that require ongoing care. In some instances, such as when an individual has a moderate level of assets between £100,000 and £175,000, larger bills may actually apply as a result of the reforms.
None of us can predict what the future will hold, but looking ahead and planning for the possibility of care home fees is vital in order to preserve assets.
When considering your future and care fee planning, our solicitors will take a comprehensive look at your financial situation and offer advice on:
- Entitlement to state benefits
- The way your will (and that of your spouse) is structured
- The way in which your home is owned, ensuring it is protected for both you and your family
- Putting Lasting Powers of Attorney in place to ensure that someone you trust can help make decisions or act on your behalf, should you become unable
- The suitability of trusts for you and your family
- The possibility of gifting assets
Our team has considerable experience helping people plan for care home fees. We can advise you on the best way to structure your assets so that you’re prepared for future costs, whilst also preserving the inheritance you want to pass on to your loved ones.
Jill Waddington is a solicitor specialising in private client law at O’Donnell Solicitors. For help or advice in relation to care fee planning, please contact Jill Waddington on 01457 761320 to arrange a convenient appointment.
