INTRODUCTION
This can only be regarded as a general guide. The law and regulations in this area are very complex. Individual circumstances will differ and we strongly advise that you seek advice that can be tailored to your particular needs.RESIDENTIAL CARE
Residential care fees are a major concern nowadays to elderly people and their relatives. It is the duty of the Local Authority to provide residential care when it is needed. However, if someone does have to go into long-term care there is a risk that the person's financial assets, including the home may have to be used and sold to pay for the costs.ASSETS
Assets include personal savings and investments, half of any joint savings shared with a spouse and the value of the family home provided a child or a relative over 60 does not live there.CARE COSTS
At present, help with long-term care costs is means tested. This is based on the person's assets. There are three main bands to consider as follows.ASSETS OVER £20,000
If an individual has more than £20,000 in assets then the State will not help at all. That person will have to use their assets over £20,000 in order to pay the full residential care fees themself.ASSETS BETWEEN £12,250 AND £20,000
With assets between £12,250 and £20,000 the Local Authority will give assistance with the care fees. However the amount will be reduced by £1.00 per week for every £250.00 that person has above £12,250.ASSETS UNDER £12,250
With assets of less than £12,250 all nursing costs and personal care costs will be met but that persons benefits and pensions may be reduced to a nominal £18.10 per week.NURSING CARE
In theory everyone should get nursing costs free via the NHS. If someone is in long-term care and actually requires nursing care then it may then still be provided free via the NHS. The state will also pay for the cost of nursing care at home if needed. However this does not work in practice when someone receives nursing care at home. If the person wants regular help with dressing, feeding or washing they may have to pay for it. The costs of this can be easily over £400 per week.LOCAL AUTHORITY ASSESSMENTS
As Local Authorities become increasingly more desperate for cash they are likely to want to use whatever means they legally can to try to seize a persons assets and use them to pay for long-term care costs. Care needs to be taken when dealing with the Local Authority when they carry out assessments. It is always best to seek legal advice well before an individual is likely to go into long term care.ORGANISING ASSETS TO REDUCE CARE FEES
We can advise on the best way to organise and preserve assets to prevent them from being included in a Local Authority assessment. This can be done in a number of ways, sometimes by transferring assets into family members names or into special bonds or setting up discretionary trusts.DELIBERATE DEPRIVATION
Great care is needed when organising assets. This is because if a person deliberately deprives himself or herself of an asset or resource for the purpose of securing or increasing income support or reducing the amount that they have to pay to the local authority for their accommodation, they may be treated as if the assets were still owned by them. This is called being treated as if they still held "Notional Capital". The person's intentions or inferred intentions at the time are what are important. However it is for the Local Authority to prove that this was a significant part of the person's intention in making the gift.EXAMPLES OF DELIBERATE DEPRIVATION
TRANSFERING A HOUSE
Particularly if the transfer is shortly before the person is to go into care.INCURRING SUBSTANTIAL EXPENDITURE
E.G. Buying expensive holidays or goodsEXAMPLES OF POSSIBLE WAYS OF PRESERVING ASSETS
SETTING UP A TRUSTLIFE INSURANCE POLICY MONIES
PAYING FUNERAL EXPENSES IN ADVANCE
SETTING UP A PROTECTIVE WILL TRUST
