If I go into care in the future I'm going to have to sell my home to pay for it...
Not necessarily. For most of us, the thought of our family home being sold to pay for care instead of being passed down to our intended beneficiaries and loved ones is quite a distressing and frustrating one.
The 'single' average cost of a residential care home in Scotland is around £35,048 a year, (£674 a week) increasing to over £42,796 (£823 a week) for those receiving nursing care, and with the average stay at about three years, the costs are susbstantial(1) and if you have assets worth £27,250(2) or more you are required to pay for your own care. If there has been no forward planning or provision made to pay for care, families can find themselves in a financial crisis where the only means of paying this huge bill is to sell the family home.
Thankfully there are various options and means of planning ahead to avoid having to sell the family home. We specialise in Long Term Care fees and later life planning. All too often we come across people who realise there is help and advice available once a large amount of capital has been eroded to pay for care.
As a Long Term Care specialist and accredited Later Life adviser I can help you understand and talk you through the following:
- The care system in Scotland and how it works
- The benefits you are entitled to
- The choices you have in relation to paying for care
- The pros and cons of Care Fees Annuities / Immediate Needs Annuities
- The role of your local authority and their responsibilities including understanding the financial assessment means test
- Renting or selling the family home
- What to do if you feel that care should be paid for by the NHS
- Avoiding common mistakes
- How to mitigate IHT…from regular gifting and the use of simple Trusts(3) to specialised products
- Your responsibilities and your duties as a Power of Attorney(4) or Guardian appointed by the Office of the Public Guardian
- Providing insight into sensible Power of Attorney and Guardianship friendly investment options
For more information around my Long Term Care experience and to find out more about how I can help you click here.
1. *LaingBuisson Care of Older People UK Market Report 29th edition, 2018.
2. The system which is means-tested, states that if you have assets worth £27,250 or more then you should pay for your own care, unless you have complex and unstable medical care needs you are entitled to Continuing Care NHS funding (the NHS pays for on-going healthcare not old-age or social care). If you have assets below £17,000 then the state will pay for your care and it will cover some of the costs if your assets are between £17,000 and £27,250. Of course in most cases, your property is included within your assets and with this in mind, most of us would be looking at paying for our own care.
3. Trusts and Estate Planning are not regulated by the financial conduct authority
4. Please note that advice given in relation to a Power of Attorney or being a Guardian will involve the referral to a service that is separate and distinct to those offered by St. James's Place.