01257 463672

The Growing Cost of Care

Each year 70,000 homes are sold to fund residential and personal care.

With 1 in 3 women and 1 in 4 men over the age of 65 going into care, a growing population and an increasing average life expectancy, this is an area that many hard-working families are concerned about.

If you require care, Social Services will carry out a financial assessment to decide how much that you will have to contribute towards the cost of your care.

The Local Authority financial assessment takes into account both your income and your capital.  Income includes money received regularly from pensions, benefits and other sources and capital includes savings, investments and, in many cases, the value of your home.

If you own your own home, this may be counted as capital and may have to be sold to meet the cost of care home fees if a spouse or other qualifying person does not live in your home. For the first twelve weeks of permanent care, the value of the property is not taken into consideration, however after this period, if the house is not sold the local authority can put a legal charge on it and claim back what is owed when the house is sold.

Transferring your property to your family is not an ideal solution as it means that you could lose control of your home if your children go on to experience divorce or financial difficulties in the future.  It can also create a Capital Gains Tax liability down the line.

It is possible to purchase an Immediate Care Plan to pay for your care, however these can be very expensive and not usually the answer that people are looking for.

With careful planning at the right time and with the right advice, McHale Baker are able to provide protection of your assets through Will Planning and Family Protection Trusts.

McHale Baker
11 Northern Diver Building
East Quarry
Appley Lane North
Appley Bridge
01257 463672

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STEP - Society of Trust and Estate Practitioners

Institute of Professional Willwriters