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Care Home Fees
As we get older, we all need to consider how we will fund the cost of our long-term care, whether it is for at-home care in our own residence or the costs of living in a dedicated home. The professional and experienced team at JMW is here to offer guidance on the cost of long-term care, providing the assistance you need to make the right decisions.
Understanding Long-term Care Costs
Many people severely underestimate how much their long-term care will cost and are left in difficult financial positions during a time in their lives when they should be relaxing, enjoying their retirement and spending quality time with their friends and family.
If you want to safeguard your future and ensure that the cost of your long-term care is covered, it is vital that you speak to an experienced solicitor who can advise you on the specifics of your financial situation and offer bespoke advice.
The Care Bill
In May 2014, the Care Bill received Royal Assent and comes into force in April 2016. The capital threshold at which a person becomes liable for the whole costs of their care has increased to £118,000.
There is now a cap on the total contributions a person can make to care for somebody, which stands at £72,000. However, this is only in relation to the cost of the care itself. In addition to care costs, everyone will have to make a separate contribution to the hotel costs of living in residential accommodation of up to £12,000 annually. Therefore, it is estimated that a person paying for their care would actually spend around £130,000 before they reach the £72,000 cap.
Even after the cap has been reached, people may find that they, or their family, have to top up the state contribution to their care so that they can remain in a home of their choosing. At present, it is unclear whether, if you are topping up before you reach the cap, the top-up element of the fees will count towards the cap.
How Much Could Your Long-Term Care Cost?
There are few people who can afford to pay for the cost of their long-term care out of their income, so there is no need to worry if you cannot either. Most will fund their care through a mixture of their own assets and state benefits or pensions.
At JMW, our solicitors will take a comprehensive look at your financial situation and offer advice on:
- Any benefits you can claim
- Selling property or other assets to fund long-term care
- Making up a shortfall in care fees
- Your eligibility for NHS Continuing Care funding
- Your eligibility for local authority funding care costs
There are many ways in which you could fund your long-term care and our solicitors can advise on the best solution for your circumstances. Options include:
- Taking out care fee payment plans
- Downsizing to a smaller home
- Investment bonds
- Releasing equity tied up in your property
- Selling art/antiques
- Renting out your home (if you no longer live there)
Why Choose JMW?
We are here to provide all the assistance you need to make sure you are able to keep on top of all costs associated with long-term care. We are highly experienced in this area of law and will ensure you make the right decisions to make the whole process as productive and stress-free as possible.