Long Term Care Funding

More and more people are needing personal care in later life, meaning the only real option for many is moving to a care home. Although nursing care for medical conditions is provided by the NHS, in England and Wales personal care is not and there are strict rules on who will be provided with care by their local authority and those that will have to fund their own. The local authority will take into account income, savings and other assets to determine if someone is a self-funder and unless their spouse, or a disabled relative lives with them practically everyone who owns their own home is most likely to be a ‘self-funder’.

Many people in their 50s and 60s are finding that they are having to place elderly parents in care homes and having to find the funds to pay for it. Often they simply sell their parent’s home, put the monies in a deposit account and hope it will last, but with care homes costing on average around £36,000pa (some much higher, according to Laing & Buisson Care of the elderly 2010) and no one knowing how long it will be needed for (the average stay is 4 years according to Partnership) this adds to the uncertainty and anxiety of the person needing care, many of whom are unhappy that the funds may run out and they may be forced to move later and that there may be no inheritance to pass on.

By exploring the options and tax implications we can help clients find the best way to pay for their own, or their elderly relative’s care and help to take away that anxiety.