If you need to go into a nursing home in your old age, the government will assess your ability to pay for your own care costs. If you have more than £26,000 in capital – included in the assessment is cash you either have in the bank or can realise through selling shares or other significant assets, then the government says you can pay for your own residential care costs. If you have capital of between £16,000 and £26,000, you will have to pay for a proportion of your own care. Only if you have less than £16,000 of capital will you be exempt from paying for care.
If you own your own home, it will be considered “capital” twelve weeks after you move permanently into a nursing home. It will only not be counted if certain close relatives still live there.
Most of us would rather see the family home pass onto our children rather than the state. Care cost care planning involves making the best of the rules as they currently stand to try and achieve this.
We help clients explore options such as gifting the family home to their children while retaining the right to live there, or transferring the house into a trust. We can also look at options involving mortgages or purchasing immediate care plans.
There is no guaranteed way to have your home excluded from paying for care and the opportunities for care cost planning get smaller the closer you get to needing full time care.
Contact Wallace Quinn as soon as possible if you have questions concerning care cost planning for you or a member of your family.
The figures quotes in this section are correct as of January 2015.