Most people will be expected to pay full care home fees from their capital (including savings, investments and property) and income (pensions and benefits etc). Before giving you any financial assistance the council will carry out a means tested financial assessment to work out how much financial help you may qualify for.
If you don't qualify, your home may have to be sold to pay for your Long Term Care costs. Your savings and investments could be wiped out and any income would be assessed and used towards the cost of your care. Your children and grandchildren could lose their entire inheritance.
Council approach
When a means tested financial assessment takes place, all your capital and assets, including your main residence, are taken into account. Only those who have assets below the £23,250 threshold will be entitled to the maximum possible public funding. When assessing eligibility for assistance with care home fees, the council can look for evidence of deliberate, or intentional, deprivation of capital.
“If you have capital above £23,250 you may have to pay for all future care costs.”
Protecting home from care fees
"Deliberate deprivation" is the term used when someone is assessed as having given away assets, either income or capital, to avoid using that money to pay for their care or future care.
Where they believe deliberate deprivation has taken place, the council can treat the asset as notional capital and assess you as though the asset still belongs to you.
Guidance to councils suggests that the timing and motive behind the transfer should be taken into account when this is being looked into. Early careful planning and expert advice are therefore of paramount importance.
Help
We can also assist when a financial assessment is required and ensure that the correct approach is adopted by the Council or Local Authority and that all the necessary processes are followed.
Should you have any concerns at all at what can be a difficult time, we are able to provide help and assistance.