Our Private Client department can assist with the many issues which may concern elderly clients such as benefit entitlement, care home fees, inheritance tax planning, Powers of Attorney and abuse of elderly client finances. Read More
Baches Solicitors have elderly client law specialist with years of experience in completing care assessment applications and advising on funding and the protection of your assets.
A main concern that many people have, is about going into a care home and their property being sold to fund the care home fees.
Self funding – A financial assessment will be made looking at your income (private and state) and capital. If your capital and savings are over a certain threshold (currently £23,250), then you will be fully self-funding and all of your care costs will have to be paid by you.
Local Authority Funding – If the value of your capital assets are below £23,250 but above the lower threshold (currently £14,250), you will be entitled to receive a contribution towards your care fees from the local authority.
Full Funding– If your assets are below £14,250 your care will be fully funded by the local authority.
Third Party Top Up – Where you have chosen to enter a particular home and the cost of care in that home is more than the amount being paid by you from your income plus the local authority contribution, you must find a third party to top-up.
If you need part medical care and part social care, then the NHS will pay a flat rate towards the medical care. If your primary care need is a health need, then your care fees should be met by the NHS.
Finally, if you go into care having been sectioned under the Mental Health Act, then all your care fees will be paid for you under section 117 of that Act.
Many people are tempted as they approach or enter retirement to transfer their homes into the names of their children, or to give away large amounts of money. There could be a variety of reasons for this but commonly it is with a view to avoiding inheritance tax or care fees.
Giving away your assets entirely has many risks. There are other solutions you may wish to pursue which would be more suitable for you.
You can give your share in your home away by Will into a Protective Property Trust.
Change the types of Investments you have, some life policy based investments cannot be regarded as capital and taken into account by the Local Authority for fee calculations and also reduce your inheritance tax liability.
You may wish to discuss alternatives with our Solicitors at Baches before you gift your home, if you require further advice about care home fees and protecting your assets please contact our Private Client Team.