As you get older, or your dependency increases, you may find it increasingly challenging to cope in your own home.

The cost of moving into and living in a care home can be very expensive, so much so that your home may have to be sold to pay for care fees. 

When someone goes into care, they are automatically 'means tested', and all of their assets, including the family home, are taken into account.

If you own more than the "upper limit" (which includes your property, any cash, savings, and stocks and shares etc.), you will be expected to fund the full cost of your care fees. You would not be able to receive any financial help from your Local Council until your savings (assets) have been reduced to below the "upper limit".

Care residents with capital between the upper and lower limits are expected to contribute from their capital and income.

If you have assets below the lower limit, any contribution you may be required to make towards your care cost will be based solely on your income, and your assets will be disregarded.

Planning in advance ensures that both your financial affairs and personal welfare are in safe hands if the worst were to happen.

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Care and the costs of Care  - Frequently Asked Questions

The simplest way to avoid this happening is to change how your property is owned. When buying a property with another person, the majority enter the ownership with Joint Tenancy. While Joint Tenancy is the ideal arrangement in the early years for most people, this changes when care cost issues and Inheritance Tax liabilities come into question. 

It then becomes advisable to alter the ownership to “Tenants in Common”, so that you now each own 50% of the property (percentages of ownership can vary according to individual requirements). Then setting up Mirror Wills, each bequeathing the Testator's share of the property to either a Property Trust or Family Trust to ensure that your home is not lost when care costs arise.

When the first of you dies, their share of the property is left to the Trust, whose beneficiaries will be the spouse or partner, children, grandchildren or other named beneficiaries. While the surviving partner continues to reside in the property, there are no issues, but once the survivor goes into care, property and assets will be assessed for cost of care. 

If you own more than the "upper limit", currently £23,250 in England (which includes your property, any cash or savings and stocks and shares), you will be expected to fund the full cost of your care fees. You will not be able to receive any financial help from your local council until your savings (assets) have been reduced to below the "upper limit".

If you have less than the "upper limit" savings, or when your savings drop to below this limit, the local council will assess your ability to pay, based on your capital and income.

If you have assets below the "lower limit", currently £14,250 in England, any contribution you may be required to make towards your care cost will be based solely on your income, and your assets will be disregarded.

You are most at risk of losing your home to cost of care when you go into care, after owning your home jointly with a spouse, unmarried partner or civil partner and they have passed away. The full capital value of your home will have passed to you, and you will be assessed on the property's full value, along with any formerly jointly held assets, such as savings.

Assets such as cash, stocks and shares, bank and building society accounts, PEPS and ISAs etc. will be determined as liquid assets and, in addition to any income received, will be assessed for care. Changing the way your assets are held and invested will ensure that they are not assessed as part of the cost of care. 

Councils are advised that if an Investment Bond is written as one or more Family Life Insurance Policies, that contain cashing-in rights, by way of options for total or partial surrender, then the value of those rights has to be disregarded as a capital asset in the financial assessment for residential accommodation. 

In contrast, the surrender value of an Investment Bond without Family Life Assurance is taken into account.

Income from investment bonds, with or without Family Life Assurance, is taken into account in the financial assessment for residential accommodation, as may be payments of capital by periodic instalments.

Please call us on 020 3355 2875 

for an exploratory conversation about Care.

For your obligation-free consultation on making your Will

Useful Tips

How can I prevent my home from being sold?

When will I have to pay for care?

So I can protect my property, but what about my other assets?

When a person can no longer manage for themselves, their health, welfare and protection, they may require some level of outside care.

The type of care required could range from support with day-to-day activities, to managing health, all the way through to residential care.    

Care provision can be assessed either privately or through the local authority.

What does "care" mean?

Once the needs of the client requiring care have been assessed, the local authority may require a financial assessment to be carried out. 

Whilst that assessment can take many forms (such as over the telephone or face-to-face), it usually begins with a financial assessment form. 

Relatives are expected to provide full details about the person requiring care's income and capital. 

We can complete this form on behalf of the person entering care and support the family at this difficult time.

Local Authorities and Financial Assessments

We have a wealth of experience in care cases. Some disputes settle once the financial assessment has been submitted; others have involved lengthy correspondence and an appeal to The Local Government Ombudsman. The type of issues we deal with varies hugely, ranging from those with simple 'bloodline planning' to those with no Trust involved.

Our specialists pragmatically apply the law to act in your best interests.

Can you liaise with the Local Authority on my behalf?

For a no-obligation chat about setting up or reviewing your Will

Call us on 020 3355 2875

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Paying for Care

At HB Partners, our advisers can advise you on all aspects of Care and Care Planning

How do I protect my home and assets from care costs?

Firstly, it is essential to safeguard your home, and the first step is to look at how you currently own your home. The majority of people own their homes jointly, which means that the survivor would hold 100% of the full property value on first death. 

Simply changing the way you own your home to what is known as 'Tenants in Common', combined with the appropriate Trust planning, will effectively ensure that your property is fully protected should either of you go into care.

As with your property, by changing the way your assets are invested and held you can ensure that your cash or liquid assets are also protected.

If you fail to act now:

• Your home may have to be sold to pay for your long-term care costs.
• Your savings and investments could be wiped out.
• Any income will be assessed and used towards the cost of your care.
• Your children and grandchildren could lose their entire inheritance.

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Most of us work very hard over the years to buy our own homes and build up our savings for our retirement and would like to leave a 'little something' for our children and grandchildren after we are gone.

Unfortunately, the costs involved in moving into a care home can wipe out your entire savings, and your home may have to be sold to pay for care fees. This could result in your loved ones receiving very little, or even nothing at all, of what you originally intended them to have.

When someone goes into care, they are automatically 'means tested', and ALL of their assets, including your home, are taken into account. Only those who have very few assets will escape the costs of care. 

The amount that you can keep before paying for care will depend on the country you live in. Click here to see the current thresholds in the UK. 

How much can you keep before paying for care?

What about my other assets, such as bank accounts and savings?

Our team of fully qualified Consultants can advise on all aspects of Care Planning and provide you with the ideal strategy to ensure that your assets are legitimately protected.

Long Term Care Capital Thresholds

You will be required to pay for all of your care if your assets are more significant than:

England: £23,250

Wales: £30,000

Scotland: £26,500 (From June 2017)

N. Ireland: £23,250 (April 2017 - 2018)

You will be required to pay for some of your care if your assets are between:

England: £14,250 - £23,250

Wales: £30,000

Scotland: £16,500 - £26,500

N. Ireland: £14,250 - £23,250