Providing for Long-Term Care (you or your parents)

Many people approaching retirement are concerned about the need to provide long-term care for themselves or relatives.

Average costs of Residential /Nursing Homes
£24,000 - £28,600 per annum
(Source: Laing and Buisson, Independent Health Sector Analysts)

County Council Duties
Local Authorities have a duty to carry out care assessments for anyone, who appears to need community care services.

A means test will be performed for residential and nursing care in England. With Capital and savings above £23,000, you will be assessed as being able to pay the standard rate. This varies from one local Authority to another.

Your home will not be included in the assessment if it is still lived in by partner/spouse, relative over 60, aged under 60 if incapacitated. The Local Authority has the authority to create a legal charge on the value of your property, without your consent.

Options to fund the cost of long term care

• Income from pensions
• Income from savings/investments
• Children to pay
• Proceeds from the sale of the home/equity release.

Alternative options to funding the cost of long-term care are Long Term Care Bonds or Immediate Care Plans.

Benefits of Long Term Care Bonds or Immediate Care Plans
Guaranteed income through out the duration of the stay in the home, greater choice of homes, capping of future capital expenditure, allows for inheritance tax planning via gifting, permits the client to spend excess capital.