By Natasha Fathers
Hawsons
WHILE most of us hope to live long and prosper, unfortunately life is generally a lot more unpredictable and many people face the need for either domiciliary care or residential/nursing care in their later years.
With the cost of care fees becoming a significant burden, it is worth looking at the different funding options when considering how best to finance individual care plans.
If you need to pay for care – what are the rules?
If your assets are over £23,250 (in England) which can include your property, there is no financial support from the local authority.
If your assets are less than £14,250 you should get full financial support from the Local Authority, but:
* The Local Authority sets maximum limits for the cost of care
* Eligible income is still taken into account
If your assets are between £14,250 and £23,250, some care may be covered by the local authority and you will pay for the rest.
Different types of income, such as money from certain disability benefits and pensions, may not be counted in the means test. This is the same for certain types of capital. All other income and capital can be taken into account.
Is any help available?…
Financial assistance can be available. Some payments or benefits require means testing and financial and physical assessments (where your income and assets or current health have to be considered before a decision is made).
Attendance Allowance – this is available if you require help with personal support and are aged 65 or over and physically or mentally disabled.
* Higher rate – £82.30 per week or
* Lower rate – £55.10 per week
Carers Allowance – if you care for someone for at least 35 hours a week and they get certain benefits.
* Amount payable – £62.10 per week
Nursing care – if you require nursing care, the local authority will contribute towards this (paid directly to care homes only). You would require an assessment to see if you qualify for this:
* RNCC (residential nursing care contribution) – £155.05 per week (England)
If you moved into a care home before 1 October 2007 and you were on the high band, NHS- funded care is paid at a higher rate. In April 2017, the higher rate was set at £213.32 a week. You’re entitled to continue on this rate unless:
* You no longer have nursing needs
* You no longer live in a care home that provides nursing
* Your nursing needs have reduced and you’re no longer eligible for the high band.
In this case, you would change to the standard rate of £155.05 a week, or you become entitled to NHS continuing healthcare instead.
NHS Continuing Healthcare – All of your care could be paid for if you have long-term complex needs. You would require an assessment to see if you qualify for this.
I have to pay towards care… how?
If you need to pay for care there are various ways to do this. This could be done by considering the following:
* Pay from income
* Use investments to produce an income
* Equity release
* Deferred Payment Agreement
* Draw down capital
* Immediate Care Plan
If funding for care is something that you need to consider, a specialist adviser can assist you with the financial aspects. If you would like to discuss the options available to you in more detail, contact Natasha Fathers at Hawsons Wealth Management Limited on 01604 645600 or email on