In the United Kingdom, a substantial portion of individuals who require permanent residential care or nursing home placement receive financial assistance from their local council. The level of support provided by social services is contingent on the total value of an individual's assets. Essentially, the more assets are worth, the greater the individual's contribution towards their care expenses.
Inclusion of your home:
If you make a permanent move into a care home, the value of your home is typically included in the means test. However, there are exceptions, such as when your partner continues to reside in the home or, in some cases, when a relative remains in the property.
Asset thresholds:
The thresholds for state-funded care differ among the UK's constituent countries. For instance, in England, the upper limit is set at £23,250. If your assets surpass this threshold during the means test, you will be responsible for covering all your care fees. This can be financially burdensome, prompting some individuals to consider asset reduction strategies to qualify for social care funding.
It is crucial to understand that local councils conduct means tests to determine eligibility for financial support, taking into account the total value of assets, including the home in most cases. Different regions may have varying asset thresholds for state-funded care.
Comparison of Exempt and Non-Exempt Assets
| Asset Type | Exempt Status | Non-Exempt Status |
|---|---|---|
| Primary Residence | Exempt if a dependent resides there. | Non-exempt if the property is unoccupied. |
| Savings Below Threshold | Exempt. | Non-exempt for amounts above the threshold. |
| Investments | Not exempt. | All investments are considered in assessments. |
| Pension Income | Exempt if directed to a spouse. | Non-exempt if received by the care recipient. |
Careful financial planning is essential to ensure that individuals receive the necessary support while adhering to the relevant regulations. Consulting with professionals in the field can be invaluable in making informed decisions about long-term care financing.
We are here to help you choose a care home or facility best suited to your needs. Do not hesitate to contact us on the following number: 0230 608 0055 or fill out this form.
Q&A:
1. Are all assets considered in care home fee assessments?
No, certain assets are exempt, such as your primary residence (if a qualifying dependent lives there), personal possessions, and savings below the set threshold.
2. Is my home exempt from care home fees?
Your home is exempt if a spouse, partner, dependent child under 18, or a disabled relative lives there. Otherwise, it may be included in the assessment.
3. Are savings always included in care home assessments?
Savings below the threshold are exempt. For example, in England, savings under £14,250 are ignored, while savings between £14,250 and £23,250 result in partial contributions.
4. Are pensions included in care home fee calculations?
Pension income is generally included unless it is being paid to a spouse or dependent. In such cases, it may be exempt.
5. Are personal possessions exempt from care home fees?
Yes, personal possessions such as clothing, furniture, and household items are exempt. Luxury items, like valuable jewelry, may be assessed depending on their value.
6. Are investments exempt from care home fee assessments?
No, investments are not exempt. They are included in the financial assessment and may impact eligibility for state-funded care.
7. Who qualifies as a dependent for property exemptions?
Dependents include spouses, partners, children under 18, and relatives with disabilities living in the property. Their presence exempts the home from being counted in the assessment.
8. Are life insurance policies included in care home assessments?
No, life insurance policies are usually exempt, and any payouts are not considered as part of the financial assessment.
9. What happens if my savings run out during self-funded care?
If your savings fall below the threshold, you can apply for state-funded care. Your local authority will reassess your financial situation and care needs.
10. Can trusts protect assets from care home fees?
Irrevocable trusts may protect assets from care home fees. However, deliberate deprivation of assets can result in penalties during assessments.
Senior Home Plus
1. How can Senior Home Plus assist with care home fees?
Senior Home Plus provides guidance on financial options, including advice on state funding, property exemptions, and budget planning for self-funded care.
2. Does Senior Home Plus offer personalized recommendations for care homes?
Yes, Senior Home Plus tailors recommendations to match your loved one's care needs, location preferences, and financial situation, ensuring the best fit.
