“Will I have to pay care home fees?”

As lawyers who help clients plan for the future, we know the idea of having to fund care in later life is a significant concern. It can mean people hold onto their money, rather than put in place tax efficiencies, because they worry they might ‘run out’. It can also make people fearful that they will have to sell the family home in order to pay for a care home for themselves or their partner.

The reality is that some people will have to pay care home fees entirely or partially. However, that only happens after an assessment of their needs and their financial situation.  

Needs assessment in England

If it’s found that you have a ‘primary health need’ the NHS must pay for your care. This is regardless of your financial circumstances. A primary health need is a physical or mental need that is the main reason for requiring care. In other words, your need for care is based on your health, and therefore falls within the remit of the NHS.

If there is no primary health need, your local authority will assess your financial situation and decide the extent to which you should contribute to the cost of your care. 

Financial assessment in England

There is an important figure to bear in mind: £23,250. If you have savings of less than this amount, your local council will usually help fund your care. You will need to provide evidence of your pension, earnings, benefits, investments and savings. You will also be asked about any property you own, but other possessions and life insurance policies won’t count.

The value of your home may be taken into account if you need long-term residency in a care home, however it may be excluded if certain people to continue to live there: your partner; a child under the age of 16; a close relative aged 60 or over, or a close relative aged under 60 who has a disability.

Can money be given away to avoid having to pay care home fees?

While good planning can help prepare for the future, giving things away could be treated as ‘deprivation of assets’. Extravagant spending could be caught by this, too. If your actions are considered deliberate, the value of those assets you have given away or used in other ways could still be taken into account in the financial assessment.

You therefore need to carefully consider your options and the implications and it is important that you seek expert legal advice.

For advice about preparing for the future, or care home fees in particular, contact us on info@bsandi.co.uk or call on 01264 353411.