Long Term Care
Long Term Care is the provision of personal and nursing care for people who are unable to look after themselves without some form of help for the foreseeable future. Long Term Care may be provided in your own home or in residential or nursing care home’s. Typically fees will vary considerably from around £15,000 p.a. to £25,000 p.a. depending on the locality, facilities required and accommodation basis. Many prefer to receive Long Term Care in their own home but this may also require a significant income to fund the help provided.
The amount of support that the government provides will depend on where you live as well as your personal circumstances.
Local authorities' will means test individuals in order to determine whether financial assistance can be granted. The rules are quite complicated but broadly if you have capital assets over £23,250 (not including your main property) you won't receive any assistance towards care home fees. Once assets fall below this level, the local authority will pay part or all of the fees. The means test may also take the main residence (home) into consideration after 12 weeks. Many people wonder about the feasibility of transferring ownership of property and capital to their children, so that its value cannot be eroded by care costs or be taken into account as part of their capital for assessment purposes. However, if a local authority suspects that assets were disposed of with the intention of avoiding the cost of the care, they can pursue both the person who disposed of the assets and the recipient with no time limit. A court will decide on the intention behind the transfer.
It has never been more important to seek professional advice regarding the importance of long term care planning. Our Independent Financial Advisory Company Total Wealth Planning, have professional Financial Advisers with the appropriate qualifications to discuss this area with you. Working together we can help you create a complete strategy encompassing estate planning and financial advice.