Paying Care Home Fees
Many of us are left in the dark when it comes to understanding who takes the responsibility for paying care home fees. It can seem like a daunting prospect, but with adequate long term care planning you'll be able to get the most out of your assets, even if you are liable for paying full care home fees.
Will my Local Authority be responsible for paying care home fees?
When you're ready to move into a care home you will be financially assessed by your Local Authority (LA). If your assets are valued at more than £22,000-£23,250 (depending on where you live in the UK), you will be responsible for paying all of your care home fees. If your assets are valued at less than this you will be eligible for funding from your LA, how much you get will depend on exactly how much you have.
Paying for your own care home fees:
If you would like the security of knowing that your fees will be paid for as long as you need long term care, then purchasing a long term care insurance plan may be the right option for you. In return for an upfront premium you will receive a regular income towards your care fees. You may also want to consider other options such as drawing an income towards your care needs by investing for long term care. Finding an option that is right for your needs will depend on your own individual circumstance, and you might like to discuss your situation with a long term care planning advisor.
Paying care home fees can seem like a huge financial commitment, and many of us will be keen on finding ways of reducing or avoiding them. However, if your LA suspects that you gave assets away for the specific purpose of avoiding care home fees they may take these assets into account when they make the financial assessment anyway, and you could end up losing out. Financial planning, and winding down you assets in preparation for later years may be suitable for you, but care must be taken to avoid any funding pitfalls, and you may want to seek professional advice.
For professional independent advice on paying care home fees and a fee free initial consultation, speak to a member of a long term care planning advice team at one of our partner firms.
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