Quite often, elderly people find themselves being admitted into residential care with very short notice. When this happens, families are often thrown in at the deep end when gathering information about the provision of care.
We have put this section together to help you through this journey. However, we would recommend that you contact your local authority for further advice about care homes for the elderly.
We want everyone to experience the outstanding quality of care and accommodation we provide and to this end; we have made available a limited number of rooms where we accept local authority rates.
However, where a local authority ‘sponsored’ room is not available, a family member, friend or charity may ‘top up’ the fees by way of a ‘third party contribution’. This bridges the difference between our fee level and the level of fees the council budget allows. Your relative is NOT permitted to pay the ‘third party contribution’ if their capital is below £23,250.
If your relative has less than £23,250 of assets & savings combined, they may be eligible for funding by the local authority following an assessment of their care needs.
Your local authority will assess your loved ones’ care needs and undertake a financial assessment. The amount that the local authority will pay is capped and is dependent on the individual council.
Your relative will be expected to pay a contribution towards the funding, which is currently set at £1 per week for every £250 of capital between £14,250 and £23,250. If their capital is below the £14,250 threshold, the local authority funding will be based on income only and not capital. In this case, the local authority will take all the income to contribute towards their funding, with the exception of £23.50 per week, which is your relative’s ‘personal expenditure allowance’
If your relative has a property that is their main residence, they could be eligible for a ‘12 week property disregard’ for the first 12 weeks of their stay. The ‘12 week property disregard’ means that the value of their home will not be taken into account for the first 12 weeks of permanent stay in residential care, which makes it more likely that they would receive council funded care for this period, if the value of other assets does not exceed £23,250. They would still however be required to pay a ‘contribution’.
If your relative’s total assessable capital (including property) exceed the upper capital threshold of £23,250, providing their other (non-property) assets are less than £23,250, instead of being forced into selling their property immediately, you can apply to your local authority to pay the care costs for you until either the property is sold or the owner passes away. In return, the Local Authority would place a legal charge on the property, to ensure they can recover the money owed once the property is sold.
If the application is accepted, your Local Authority are only obliged to allow your relative to “defer” paying the difference between their income and the maximum published contractual rate your local authority is willing to pay for the type of care they need. Since our fees are higher than this rate, your family would still be liable to fund any difference.
It is important that anyone considering this option gets independent financial advice before agreeing to a deferred payment scheme.
In return for paying a one-off single premium to a specialist long term care insurance company, an immediate care fees annuity allows you to transfer the worry of paying for an unknown period of care to the insurance company. They guarantee to provide the insured party with a regular income indefinitely, to meet your care fees. The benefits include:
- The provision of a tax-free income
- Ensuring care fees can be met indefinitely
- Limiting the eventual cost of care
This approach can help you cap the cost of care at the outset and protect any remaining money you have for other personal use. To minimise eroding your estate, it is common for people to pay a premium that only provides the shortfall between your care fees and on-going income.
Which method is best for me ?
Which method is right for you will depend on many factors including; life expectancy; the cost of an annuity; how much money you have and your attitude to risk.
We strongly advise that you seek professional advice before making any decisions.