Do you really want to avoid paying for care?

Updated: Jul 17, 2020

Life is about balance.

We know that you want to make sure that your family benefit from your estate but have you also considered that you may need care in the future and that this care will need to be paid for?

Firms are often asked “how can I stop my home being sold to pay for care?” or “how can I avoid paying for care?”

Usually, the answer to this question is you cannot, and this is understandably disappointing.

After all, you have worked hard all of your lives, paid your taxes, only to now be told that it may all be taken to pay for your care.

You may have been told use a trust for asset protection (an asset protection trust) but these are often overturned by the local authority as they are classed as deliberate deprivation.

The same can be said for gifting your house to your children

However, few people stop and think about what it may mean to have the local authority fund your care? And how making a Will may be able to help you in the future.

When will the Council contribute towards my care costs?

If you have assets (money, investments or property) worth less than £14,250 then any care that you may need will be funded by your local authority.

If your assets are worth somewhere between £14,250 and £23,250 then you will pay something towards your care and so will the local authority.

If you have more than £23,250 then you will be 100% responsible for paying for your care.

If the local council is paying some or all of your care costs, you can choose your care home, but this is subject to certain conditions:

  • the home chosen is suitable to meet your assessed needs

  • it doesn’t cost more than the local council would expect for this type of accommodation

  • the provider is willing to enter into a contract on the local council's usual terms the care home is within the UK.

A government study from 2017 found that the average cost for a self-funder in 2016 was £846 per week (nearly £44,000 per year), while Local Authorities on average paid £621 per week- a rather large shortfall!