Care home fees: why it’s vital to plan
by Andy Hopper, Independent Financial Adviser and Long-Term Care Specialist, Manning and Company
Jeremy Hunt, the Health Secretary, has announced this week that from 2017, anyone with assets, including their home, worth more than £123,000 will have to pay for the first £75,000 of their care costs. They will also in addition, pay “bed and board” of up to £12,000 annually when in a nursing home.
The introduction of a cost cap and raised asset allowance is in line with the Dilnot commission report of 2011, although there is significant lack of understanding of how much care will cost and who will be paying for it.
The Society of Later Life Advisers’ (SOLLA) press release suggests that “planning for the costs of care in later life will increasingly move to be a mainstream area of financial planning”. The facts are that more than 80% of people are entering full time care without seeking prior professional advice on the funding of that care.
When people in care exhaust their funding it causes significant distress to the family, and the care home concerned. How can the home (which is a business) continue to provide care when there is no assurance of being paid? Can the family cover the costs – or will the person in care have to move? And to where?
It is increasingly critical that people seek professional advice in this complex area from the outset, to ensure that the cost of their care is fully met for as long as required.
At Manning and Company we have specialised in-house expertise to guide and help people get their care fee planning strategy right. For independent advice, call us today – our first meeting is free and without obligation.