One of the most common questions we hear is "What happens if I need to go into Care - How can I protect my assets?"
The cost of care is between £530 and £950 PER WEEK (August 2017) depending on your location (see here ). If your total assets are below £23,250, then the State will fund your place. Above that, and it's down to you. Even at the low rate of £530 per week, this equates to £27,560, and with the average stay of about 30months, your assets could be reduced by nearly £69,000, or at the top rate it would be £123,500!
Most of us work very hard over the years to buy our own homes and build up savings for our retirement and would like to leave a “little something” for our children and grandchildren after we are gone.
The costs involved in moving into a Care Home can literally wipe out your entire savings over time and you may be forced to sell your home to pay for care fees. This could mean that your loved ones could receive very little, or even nothing at all of what you originally intended them to have.
When someone enters care they are automatically “means tested” and all of your estate, including your home are taken into account. Without planning ahead, only those who have very few assets will escape the cost of care.
Whatever assets we do have, many of us would want them passed down to our children and grandchildren, so losing a property to "care costs" is a severe blow. If you are concerned about what you intend to leave your loved ones, no matter your circumstances, we are able to advise on all aspects of Care planning.
Consider if you could legally "Hide" your assets so they weren't part of your means test. No care fees to pay. However this Trust Work must be done at least 7yrs prior to you needing it. Any less and it will not work.. The rule here is the sooner the better. Also consider if your home couldn't be sold without your permssion you couldn't be forced to sell...
It never ceases to amaze me how straightforward it can be to plan ahead to protect yourselves, but how few do. It's also a fact that its cheaper to live on a luxury cruise liner than in most care homes. If you don't believe me, checkout a 14 day cruise and compare to the basic care home you're considering.
For the sake of a few hundred pounds you can save at least £69k.