Changes To The Way You Pay For Your Care…
In her latest Timms Blog, Wills & Probate Solicitor, Charlotte Day discusses “Changes To The Way You Pay For Your Care…”
Boris Johnson’s Government has recently announced that an individual will not have to pay more than £86,000 towards their care once a cap on social care payments is brought into effect in 2023.
What Are The Current Rules?
Individuals with assets over £23,250 will not qualify for assistance with paying for their care and will be expected to self-fund the cost. This also applies to individuals who are moving into a care home owning a property, although there are some limited exemptions.
Individuals with savings under £23,250 may still need to contribute towards the cost of their care out of their income until their assets fall below £14,250. At which point the local authority will step in to fully fund the care.
In some circumstances, the NHS will offer funding towards care, but this can be very difficult to obtain.
What’s Changing?
From 2023 individuals with less than £20,000 will not have to pay anything towards their care from their savings. However, they may still need to make some contributions from their income.
Individuals with assets between £20,000 and £100,000 may be entitled to some help with funding their care from the local authority, however they will need to pay £86,000 from their own savings before they reach the proposed cap.
Individuals with assets over £100,000 will not qualify for any assistance and will need to pay for the full cost of their care until their assets fall below the threshold.
It is important to note that the changes will not affect how much you have to pay towards care home fees, but instead how much you have to pay for your personal care i.e. if you need help with dressing and washing yourself.
How Can I Protect My Assets For Loved Ones?
Whilst the Government is trying to make some changes to ease the burden of care costs there will still be a significant impact on an individual’s savings.
It is possible to protect some of your assets for your loved ones by using your Will to create a Life Interest Trust which can ensure that at least some assets pass to loved ones on your death.
If you would like further information, please don’t hesitate to contact me on 01283 561 531 or via email at c.day@timms-law.com. Alternatively visit our website here.
December 2021