August 2023
Care Fees Planning
It has been reported that one in seven people are expected to need care. Anyone involved in the funding of long-term care will know just how expensive it is.
The Office of National Statistics (ONS) now states that women need 2.9 years of care and men 2.2 years. This means that the cost could be anywhere from around £150k to £300k on average. Indeed, some could cost less, but some could also cost more.
The majority of the population don’t appear to have made provisions for care fees instead of relying on their home to cover the costs… Private and state pensions will help towards this, but these are often relied on by the partner who may well find themselves leaving their home and moving in with their child. Which, probably may not be the circumstances that either party would have chosen to happen.
The Government was due to bring in a cap for costs but has so far failed to do so. Thus, it remains that an individual needs total assets of less than £23,250 (including your home) before they can be fully funded by the local authority.
Sorting assets for care payment typically rests with the person holding power of attorney. Though, it is not unheard of for children to assist with this. At Beacon, we have several highly qualified experts who specialise in this area that can assist you.
Our planning not only involves the best way of providing the provisions for funding care costs, but it will also find the best options for other things such as avoiding Inheritance Tax (IHT).
Usually, by the time people require care the seven-year rule for gifting is far too late, and even the two-year rule can sometimes be touch and go. So, we strive to ensure the best possible options for your situation.
If you have concerns about funding your care or the care of a loved one, I would suggest that you start planning sooner rather than later.
To speak with our experts, please call us on 01480 869466 for a free initial, no obligation chat.
Future fees may apply.
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