Did you know that you might have to pay for your care home fees in full?
Yes, you will be responsible for funding the entire costs of your care if your property and assets exceed the national savings threshold. You will be considered a self-funder and expected to pay the total care charges using your income, property, or assets.
Our expert lawyers at Pindoria will help you avoid home care costs while staying on the right side of the law.
At Pindoria, we help you understand your options and provide legal advice based on your specific circumstances. If you are thinking of giving away your property, a portion of your savings or income to avoid paying for care, we can assure you it is not a sound decision. The local council might consider this as ‘deprivation of assets.’ Some of the options on avoiding paying for care in full include,
- You are allowed to gift money or assets if you can establish that you could not have reasonably known that you might require care soon.
- You can set up asset protection trust, deferred payments, and equity release to help avoid paying care costs.
- You can avoid deprivation costs if you sell your home for less than its actual market value.
- You can repay any long-standing debts.
- You can purchase a lifetime cover investment bond.
We believe that the key to avoiding care home fees is always planning in time. We highly recommend seeking the help of our expert solicitors, who are equipped to guide you and provide legal advice on avoiding home care fees.
Can I refuse to pay care home fees?
Unless it has been decided that you are legally responsible for the care home fees, you are not obligated to pay.
If the person meets NHS Continuing Healthcare Funding criteria, the NHS will be responsible for paying entire care fees, nursing care, social care and other costs related to their care needs.
You are not obligated or avoiding care home fees for your family members unless you hold joint assets or have signed a home care contract.
If your family member wants to get into a care home that is over their budget, you or a third party can volunteer to pay the fees. If you agree to pay the top-up fee and you sign a contract, you will then be under obligation to pay the pre-agreed amount.
Can I put my house in trust to avoid care home fees?
If you had already put your house into a trust before going into a care home, you don’t own the property. Since the property is already in trust, it is not a part of your capital anymore, and it cannot be considered when calculating funds for your care.
However, if the local council thinks you had put your property into a trust to avoid care home fees, it can challenge your exemption. But the council has to prove that at the time you had put the property into a trust, you had a realistic expectation of requiring home care in the future.
But they cannot prove you were putting house in trust to avoid care home fees if you were healthy and fit when you transferred the property.
Can you be forced to sell your home to pay for care?
You won’t be forced to sell your home if any of the following qualifying dependents live in your house.
- Spouse or civil partner
- Unmarried partner
- Ex-spouse or partner who is a single parent
If any of the qualifying dependents live in your home, the value of the home won’t be included for care home fees assessment. If you or the dependents won’t be living in your home, your home will be valued for assessment.
You might have to sell your home if you move to residential care, and there are no qualifying dependents living in your house. However, if you can continue paying for your care home fees with other income sources, you need not sell your home.
You can, however, put your property in trust to avoid care home fees provided you can prove that you could not have known you might need home care in the future.
Can a care home take all my savings?
Your assets – property, savings and income –are included in your care home fees assessment test. You can reduce the value of your property and capital if,
- You set up a trust
- Repay past debts
- Purchase lifetime bond
- Life expenditure
Individuals dispose of their assets so that the local council doesn’t include the value of those assets in the financial assessment. However, authorities are looking keenly at such property disposals to check whether it was done with an intention to avoid home care services fees.
To get a better idea about the average care home fees UK, and whether a care home can take all your savings, we suggest you consult our experienced solicitors who can guide you into making the right decision for you and your family.
Who pays for care home costs?
The local authorities will conduct a financial assessment test to ascertain whether the person can afford to pay for their home care needs. It should be noted that only that person who has to start paying for care home will be subject to assessment. The property of family members and dependents will not be assessed.
If you have a joint account, a mortgage or signed a contract with the person, your share of the property will also be considered.
If you think you can try avoiding paying for care homes by putting your property into a trust, you are mistaken. If the local council deems the transfer as a deliberate attempt to deprive assets assessment, they can reverse the process and take the property into consideration.
Do dementia sufferers have to pay care home fees?
Social Services will first assess who needs a care home. Once needs are assessed, their financial condition is then assessed. This financial test will tell the council whether the council will be responsible for the cost of care for that person.
One of the most frequently asked questions is, ‘What happens when an individual is diagnosed with dementia?’
Generally, the care home fees, dementia needs have to be taken care of by the individual. In case the individual is eligible for NHS funding, they will receive some amount in the form of a personal budget. This money can, then, be used for paying care home fees, dementia care needs, nursing needs and more. If you are not eligible for funding, you have to pay the care home fees in full.
How much does care home cost?
Unfortunately, there is no exact figure that we can give you. However, you should know that the final care home costs UK will depend on the type of care you require, where you live, the care provider, and your assets. With a thorough understanding of your income, savings and assets, you will be able to better plan the care costs of your own and your loved ones.
The average cost of care home UK also depends on whether you need residential care or nursing home care. Nursing care and specialist care is much more expensive than residential care.
The care home fees UK differs from place to place – you could pay higher or lower fees depending on where you live. For example, the care home charges in London are going to be steeper than what you might incur in the South West.