Care Fees Planning

As advances in medicine prolong many of our lives, an unforeseen drawback can be prolonged nursing home fees. This can erode wealth for many families. At Skybound Financial Planning, we can take you through all of the options available and guide you through this complex range of choices.

It’s essential to research all the funding options before any final choice is made. We can give advice on the key concerns of many carers, including the use and registration of lasting Powers of Attorney and Inheritance Tax Planning – including gifting allowances, the government thresholds, trusts and so on. All with the aim of protecting the financial status of the carer and their overall funding options. We can also perform a capital analysis to determine if all existing investments are included in local authority calculations (certain categories are excluded).

The practical truth is that state assistance will not be available if the individual has assets in excess of £23,250, and so they will have to use their own monies to fund nursing home fees. Under current arrangements with the government, Attendance Allowance and Nursing Care Allowance would still be available. Carers in such an event would have to consider the purchase of an Immediate Care Annuity (ICA) or alternatively, re-organise savings and capital to create the necessary income.

In England, if an individual’s eligible assets fall below £23,250 in the 2018/2019 tax year, then the Local Authority will make a contribution to the care fees and the extent of the help o ered will depend on the individual’s income. After allowing £24.90 per week for personal expenses and bringing in 100% of any State Pension (50% if private), the size of the support available will be established.