As the average life expectancy increases in the UK, more and more people need care later in life.
In these circumstances, either you or your family will need to consider the costs of paying for care either in your own home or in a nursing or residential care home.
The rules which determine how elderly care is funded are notoriously complicated.
Paying for care – costs and responsibilities
If a health and needs assessment confirms that you require care, but are not eligible for NHS continuing healthcare funding, then social services will carry out a financial assessment to determine whether you have the means to cover the costs yourself.
This assessment will consider your income (including interest on savings, and pension and benefit payments) and any capital you may have (including savings, investments and owned property).
If you have capital valued at:
- Less than £14,250 – You will not need to pay for your care from your own capital and savings, regardless of whether the care is in your own home or in a residential setting. You will only be expected to make income-based contributions.
- Between £14,250 and £23,250 – You will be eligible for financial support from your local authority, but you will still need to contribute to your care costs.
- More than £23,250 – You will be required to cover the full cost of your care.
If you receive care in your own home, only your savings capital will be taken into account.
The value of your property may be considered if you need to move to a care home.
If you find you have to pay your own care costs, we can advise you on the range of different funding options.
Deferred Payment Agreements
You may be able to enter into a “Deferred Payment Agreement” if you own residential property but are moving away to permanently live in a care home.
A Deferred Payment Agreement is a loan from a local authority set against your home, which will enable you to pay for your care. Interest will be applied to the loan, but you will not be required to sell your home immediately.
This loan also enables any outstanding costs to be paid to the authorities after an individual has passed away.
You must always seek independent, tailored legal advice before you enter into a Deferred Payment Agreement.
Deprivation of assets
Many people give away assets to try and qualify for Local Authority care funding.
However, if the authorities determine that you have deliberately deprived yourself of assets for this purpose, they will regard these assets as “notional capital” – meaning they will still be considered when determining the value of your capital overall.
The local authority may also seek to reclaim the deprived assets.
However, you should still seek professional advice on the legitimate and appropriate management of your financial and property affairs.
Are you entitled to NHS Continuing Care?
You may be eligible for “NHS Continuing Care” if you are transferred to a nursing home from a hospital or are living with a serious health condition.
This means the NHS will pay for all your needs, including the aspects of social care and the hotel costs of residential care, irrespective of your financial circumstances.
People are not always advised that they may be eligible for funding or that they are entitled to a fresh assessment in the light of deteriorating health.
If you think you or a loved one, may be eligible for NHS Continuing Care, we can advise you on the process and recovering any costs you may have paid when you should have been receiving NHS funding.
How can Palmers Solicitors help?
At Palmers Solicitors, we’re passionate and committed to ensuring that you have planned effectively for later in life.
Our Older Client Services team have a wealth of experience in advising clients on funding their care in old age.
Contact our expert solicitors today for tailored advice on funding your care.