Protecting Your Home And Other Assets If You Need To Go Into Care
We have all heard stories of individuals who have had to sell their family home to cover the cost of nursing home fees.
The Community Care Act (1990) states that if a person can afford to pay for their care, then they will have to pay for their care.
When a person goes into care they will be assessed as to the value of their assets, and the following guidelines have been stipulated by the Act for Local Authorities to follow:
• Assets under £14,250 MAXIMUM STATE SUPPORT
• Assets between £14,250 & £23,250 PARTIAL STATE SUPPORT
• Assets over £23,250 NO STATE SUPPORT
(Figures correct as of April 2009)
“State Support” only relates to Nursing Care – Residential and Personal Care costs still need to be funded by the individual in care.
FACT: In 2004 around 70,000 homes were sold to pay for care costs – almost 200 every day.
FACT: In 2004 £4.3 Billion worth of inheritance was used to pay care costs.
FACT: Being in care can cost between £20,000 and £50,000 per year depending on the type of care home (residential home or nursing home).
FACT: Currently, women have a 1-in-4 chance of needing long-term care, men 1-in-6. According to Age Concern, this figure is set to rise sharply as the “baby-boomer” generation reach old age and by the mere fact that life expectancy is ever-increasing.
As part of your estate planning it may be possible to protect your assets, by the establishment of a Family Protection Trust (FPT). An FPT may be able to protect, not only the family home, but other assets including any savings and investments.
An FPT is flexible and as assets are held within the trust you are not “signing your home and other assets over to your children, or anyone else” which means that you retain complete control.
We have teamed up with a panel of locally based solicitors to offer you comprehensive advice in this area.
To find out more and to arrange a home visit please contact us on 01752 603232.
|