How will you fund your care home fees?
Jan 7, 2019
It’s not a question you’ll be asked every day. The chances are you have never been asked it. But it is important.
The reality for some of us is that later life will be spent in a residential care home. If you live in England and have at least £23,250 in income, assets, and savings, you will be expected to pay for your care. If you have less than that amount to your name, you might still need to pay a contribution. The thresholds are different in other parts of the UK.
With care home fees reckoned to average £600 per week, and nursing home fees more than £800, the cost can hit individuals and their families hard. However, when this financial burden comes out of the blue, the implications are usually far more difficult to manage. Savings can be wiped out; assets including the family home sold to fund the fees.
That is why we encourage our clients to factor care home fees into their financial planning. The earlier this begins, the better. It is all about structuring your estate (the things you own) in a way that provides for your financial future, while also protecting that of your loved ones.
The good news is that most of this is fairly straightforward to implement, but it does take some specialist knowledge of the public funding that might be available as well as the options for safeguarding the things you own. Wills and trusts can be put in place (or existing ones adapted) to ring fence certain assets. Gifts can be made to pass ownership to loved ones. Certain investments can be made to cover the cost of care, in the event that it is needed.
We often work alongside clients’ financial advisors to design and implement the best arrangements. What suits one person’s circumstances will not necessarily suit another’s, so it is our job to find the best way of taking care of plans for your future. That future might involve a care home; it might not. But, with some smart planning, you can ensure that you and your family are prepared for the possibility.
To find out more about how we could help you, contact our Private Client team today who will be happy to help. Tel: 01264 353411, email: firstname.lastname@example.org or complete our no obligation, online enquiry form and someone will contact you.
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