“Half of women and a third of men will require some form of long term care” – Andy Burnham, Health Secretary, July 2009
We now live longer, but the expectation of disability free living has not increased at the same rate. 59% of the population aged 65-74 have a long standing illness which limits their activities; this figure increases to 66% once past the age of 75. This means that many people will reach the point where they can no longer live independently and will need some form of long term care.
Average care home fees throughout the UK do vary. but according to statistics from Age UK, on average (as at May 2023) , it costs around £800 a week for a place in a care home and £1,078 a week for a place in a home providing specialist nursing care.
If the value of your investments and your home exceeds £23,250 then you will not qualify for financial assistance from the Local Authority – in other words, you are on your own and must pay full fees (known as being self-funding) until such time as your capital falls below this amount. Some support will be available if your capital is between £14,250 and £23,250. But you will only qualify for full support if the value of your capital falls below £14,250.
For a FREE Inheritance tax saving and estate planning consultation , simply call our Lawyers on FREEPHONE 0800 1404544 or one of our local office numbers [see below] for a no strings attached conversation.
Likely to need long-term care funding? Thinking of giving your home to your children?
Many people think, wrongly, that if they give their home to their children, they can avoid paying care home fees. There are rules which prevent the giving away of assets to reduce the value of your assets. This is known as a deliberate deprivation of assets. If there is evidence to suggest that a deliberate deprivation of assets has taken place then Local Authorities have wide ranging powers to recover sums which it pays towards care from the person to whom an asset was transferred.
Giving away assets before you need care can also mean that your financial independence is lost and that if you subsequently need care, your choice of home is limited. There are much better options.
As with all things, it pays to plan well in advance. that’s exactly why our estate planning lawyers work closely with f highly experienced independent financial advisors who specialise in providing financial advice on the funding of care home fees as well as retirement, investment and inheritance tax planning services. With them, we offer a holistic wealth protection service where we work with you and a specialist financial advisor, considering:
- Your will and whether this can be altered to make it more efficient
Click here to read more about making a will
- Lasting powers of attorney
Click here to read more about Lasting powers of attorney
- Equalising assets
- Severing joint tenancies
Click here to find out more about the difference between joint tenancy and tenancy in common
- Welfare benefits checks
- Financial advice on maximising income from investments, equity release and planning for care home fees. Worried about how much inheritance tax will need to be paid on your estate? Take advantage of our our FREE Inheritance tax saving consultation from 1 of our highly specialist wealth management team.
Click here to read more about how our inheritance tax planning solicitors can help you