Care Home Funding
Care home funding can be complex, and yet choosing the right funding option can be one of the most important decisions that you will make in later life.
Local authority care home funding
Before you move into a care home you should receive a care needs means test followed by a financial means test. The first will determine what level of care you need, and the second will determine the amount of financial support you are eligible to receive towards those care needs.
Your LA may be able to assist you with care home funding. Howevern, many of us are now increasingly likely to have to at least share the burden of care home funding with Local Authority (LA).
If your assets total at £23,000 or more and you live in England you are likely to have to self fund your care home fees. If you live in Scotland the threshold is £22,750, in Wales £22,000, and in Northern Ireland £22,350. How much you pay if you have assets under these amounts will be decided be a sliding scale based on exactly how much you own. If you are a homeowner, after 12 weeks of moving into a care you home may be counted towards your capital, in some cases.
If you are eligible for LA funding you may wish to top up your care home funding allowance anyway to receive a higher level of care than the basic amount offered by your LA.
Personal care home funding
If you are planning on self-funding your place in a care home a long term care annuity may be an option that you would like to consider.
A long term care annuity is a type of long term care insurance, also known as immediate need annuity. In return for a single premium you will be provided with a regular income towards either your care needs at home or towards you care home provisions. One of the main benefits of this type of scheme is that the repayment contract will usually continue until you pass away.
There may also be other methods of paying for long term care available.
Professional advice
Securing your future when it comes to care home funding can be complex, particularly if there is an element of self-funding involved. Professional advice can help to guide you through the available options.
To discuss finding the best option for your care home funding needs, speak to a member of an independent long term care planning advice team, for a free initial no obligation consultation.
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