Are you concerned about potentially losing your home or savings to pay for care home fees? You’re not alone. With increasing pressure on local authority budgets, many people are looking for ways to protect their assets while ensuring they can receive the care they need. Let’s explore this complex topic and shed light on your options.
The Care Home Fee Dilemma
Due to limited state funds, individuals who can afford to pay for their own care are often expected to do so. Local authorities are rigorously reviewing applications for care funding, making it crucial to understand how your assets might be assessed.
The Means Test: How It Works
Your ability to pay for care is determined through a means test. Here’s what you need to know:
– If you receive care at home or enter a care home temporarily, your home’s value isn’t included in the assessment.
– For permanent care home residents, your home may be excluded if your partner still lives there or, in some cases, if a relative resides in the property.
– As of July 2024, if your capital exceeds £23,250, you’ll likely need to pay your care fees in full. Below this threshold, you may receive some assistance, but you might still need to contribute.
Note: The threshold amount can change, so it’s essential to check the most current figures.
Local Authority Assessments: What to Expect
Local authorities assess the value of your assets to determine your contribution towards care fees. The Care Act 2014 provides guidelines, but interpretations can vary between authorities, often influenced by budget constraints.
Understanding ‘Deprivation of Assets’
Many people worry about losing their hard-earned property to care home fees. Some consider transferring assets to trusts or family members to avoid assessments. However, this approach can lead to complications.
What Constitutes Deprivation of Assets?
Deprivation of assets occurs when you transfer assets with the intention of avoiding care home fees. Examples include:
– Putting property into trusts
– Giving away valuable possessions
– Converting assets into forms that aren’t assessable
Local authorities can challenge such transfers if they believe you’ve deliberately deprived yourself of assets to avoid payment. They must prove the asset would have been available to you otherwise.
Timing Is Crucial
To avoid potential challenges, consider the timing of your estate planning carefully. It’s important to demonstrate that your asset transfers weren’t motivated by anticipating care needs. Planning well in advance is key.
Protecting Your Assets: Legal and Ethical Approaches
While we can’t provide financial advice, we can guide you through estate planning options that may help protect your assets legally and ethically. These may include:
1. Setting up certain types of trusts in your Will
2. Exploring Lasting Power of Attorney options
Remember, there are no guarantees that a local authority won’t challenge asset transfers, even with careful planning.
How We Can Help
As professional Will writers and estate planners, we’re here to guide you through the complex process of estate planning with care home fees in mind. Our services include:
– Drafting Wills that reflect your wishes and consider potential care needs
– Advising on various trust options in your Will, and their implications
– Explaining the legal aspects of asset protection strategies
While we don’t offer financial advice, we can refer you to trusted financial advisors who can provide comprehensive guidance on managing your assets in light of potential care needs.
Next Steps
Navigating care home fees and asset protection requires careful consideration and expert guidance. We’re here to help you understand your options and create a plan that aligns with your wishes and legal requirements.
Contact our team today on 01865 507174 or by emailing us at info@adewills.co.uk to schedule a consultation. Let’s work together to protect your legacy and ensure peace of mind for you and your family.
