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Care Home Fee Protection

De Rossi Griffiths provides expert legal advice for Care Home fee protection in Carmarthen and beyond. We can advise on Equity Release, Wills, Trusts and Lasting Powers of Attorney to successfully mitigate and manage Care Home fees. What’s more, our experts can help you prepare in the event that you need privately financed residential care services in the future.

Please watch our video below to learn more, or get in touch with our team.

Watch Our
Video

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Consider A Property Trust

A Property Trust is designed to protect half, or sometimes all, of your property from the assessment of long-term care fees. It is suitable for spouses or civil partners who own a property in joint names. Upon death, the surviving spouse keeps their share of the house, whilst the deceased’s share is held in the Trust. If the survivor eventually needs full-time care, the entire asset can be protected because it cannot be charged or sold. You can therefore ensure that your respective share of the property will be passed on to your children or family members. Please watch our video below to find out how this works.

Equity Release

Equity Release is a mortgage which does not have to be repaid until your death (or when the second spouse passes away). If you are over 55, Equity Release allows you to release some of the equity (cash) in your home as a lump sum. The rule of thumb is up to 38% of the value of your home. You can stay in your property for your lifetime and still remain the owner.

Equity Release is sometimes used to mitigate Care Home fee contribution. This is often for individuals who do not own their home with another person. You can invest the money into a variety of financial products and we will refer you to one of our trusted partners to deal with the investment element. As some Investment Bonds sit outside of your estate and are not counted as an asset, they may not be considered for care contributions.

A Family
Trust

Setting up a family trust can ensure your relatives will get the most out of your assets after your death. These trusts can protect your entire estate from third party claims against the next generation of Beneficiaries. However, you should hire an expert to guide you through and interpret these specialized documents because of the intricacy of the Trusts. So, please make an enquiry for an appointment with us to discuss your unique situation. 

FAQs

Whether an individual needs to pay for their Care Home depends on their financial circumstances.

Initially, the local authority will need to assess an individual’s finances through a means test. This will determine who is responsible for paying for long-term care by looking into the value of that individual’s assets. This usually includes bank accounts, savings, investments and property. The combined value of the assets will then determine if the local authority will pay towards the fees. If you have more than £23,250 (England) or £50,000 (Wales) then you will pay in full for your own care.

Homeowners will usually need to pay for their own fees as their assets will exceed the above figures. However, there are instances where your home will not be included in the financial assessment, even if you don’t live in it. This is known as property disregard. Some examples of when the house may be disregarded are:

  • You move into a Care Home on a short-term or temporary basis.
  • You move into a Care Home permanently, but your spouse, partner or civil partner still lives at home.
  • Your close relative aged 60 or over lives in the house.
  • Your close relative under 16 whom you are legally responsible for lives in the house.

If your spouse, partner (or certain other people) continue living in your house, you do not need to sell it to pay for care. However, if the value of your other assets exceeds £23,250, you will have to fund the care yourself. You may be able to prevent the property from being sold by preparing a protective package of legal documents. For example, Trust Funds, Wills, Powers of Attorney and Memorandums of Wishes. Speak to us today to find out more.

With the right preparation it can be possible to protect your children’s inheritance from care home fees. Please get in touch with our experts today for more information.

Currently, if you have less than £23,250 in savings you will be eligible for the local authority to pay towards your fees. However, the level of care you require will determine how much the local authority will contribute. As your income is also taken into account, it too depends on how much you can afford to pay yourself. If you need advise for Care Home fee protection, our expert team are on hand to help.

Alternatively, if you have more than £23,250 in assets you will need to pay for your care fees in full. You should be entitled to receive help if they fall below this figure.

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Contact Us For Care Home Fee Protection Advice

Make us your first choice for financial planning. Get in touch with our experts today for further information and advice.

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