The Great British Land Grab:

The Scandal of Long Term Care

Every Year, over 70,000 UK Citizens are forced to sell their Homes to pay for Long Term Care.

Did you know that if you have to go into long term residential or nursing care, you will be means tested and your home could be sold to pay for the cost of that care?

Did you know that virtually all your income and savings could be confiscated and you could be left with an allowance of just £20.45 per week?

This is so important, it could be the most cost-effective Financial Planning You will ever do!

But You must consult a Specialist Advisor.

Many people do not realise the devastating financial impact of going into long term residential care. Most people will have to make some contribution towards the cost and many people will have to meet the whole cost of care, until their total assets are reduced below a sum set by the State. (Currently £21,500). This threshold is slightly different in Wales and Scotland. 

Long term care is administered by local authorities, under guidelines issued by the Department of Work and Pensions. Unfortunately, each local authority has its own interpretation of these guidelines and it is very difficult to get much specific information from them.

You may feel that this only applies to people who are very wealthy and who can afford to pay these fees, which are typically in excess of £400 per week. In some parts of the country the fees are much higher then this. Did you know that the means test starts at a total capital cost of just £13,000? (This threshold is different in Wales and Scotland). If your assets and savings are worth more than this (which will be determined by the local authority) then you will be expected to contribute toward the cost of care.

If the financial assessment by the local authority determines that your total assets are worth more than £21,500, you will have to pay the full cost of care and you will receive no contribution from the local authority. This situation will continue until your capital is spent and the balance is less than £21,500, when you will then start to receive some financial assistance again.

Don't Despair!  There are steps you can take
to safeguard your Home.

This is an Overview of the Guidelines

• The local authority will first assess your care needs before it will agree to provide any financial assistance with the costs. 
• The local authority will then carry out a financial assessment of the resident's position (not including the spouse), to determine what, if any financial assistance will be given.
• If necessary, all your personal income and any capital above £21,500 will be appropriated to pay towards the care costs, with the exception of a Personal Expenses Allowance of just £20.45 per week.
• "Income" means all income and savings in your own name, plus your share of any joint income.
• Joint account holders are treated as having equal shares, regardless of the proportion they contributed.
• Your state pension and any private pensions and benefits are classed as personal income.
• If the total value of your capital falls between £13,000 and £21,500 a tariff will apply which will increase the notional value of your income and will therefore reduce the amount of assistance that the local authority will provide. These parameters are usually adjusted in each annual budget.
• In assessing the value of your capital, any property owned (including your home) will be included,
  unless it is occupied by:

Your spouse or partner or,
A relative aged over 60 or,
A relative who is incapacitated or,
A child under the age of 16 who you are liable to maintain.

• Your home must be disregarded for the first 12 weeks of permanent stay in care.
• If your home is not disregarded, for one of the reasons above, then you will be required to sell it, to pay toward the cost of care. It is just included as part of your capital.
• If you refuse to sell your home, the local authority can place a legal charge on the property.
• If you give away part of your capital, including your home, with the intention of reducing your liability for care fees (called Intentional Deprivation of assets) then the local authority can still include the value as a part of your total capital, for the calculation of the financial assistance they will offer. This is termed "Notional Capital".
• This can also affect eligibility for Pension Credit.
• There is no set time limit for the local authority to invoke this rule. It appears they can go back as far as they consider that intention to avoid care costs was evident.
• Where the transfer occurs within six months of the request for funding, the local authority can pursue the person to whom the assets were transferred.

It all seems pretty complicated and depressing doesn't it?

Don't despair, there is a lot that you can do to safeguard your home and to minimise the impact on your savings and investments.

BUT YOU MUST ACT NOW!   Delays can be very Costly.

As we've said before, this could be the most cost effective financial planning you will ever do. We could be talking many thousands of pounds here, and possibly the loss of virtually everything you own. Planning for Long Term Care can not be taken in isolation. Decisions taken in this respect can affect your liability to Inheritance Tax and possibly Capital Gains Tax, so it is vital to get specialist, professional advice.

 Help is at Hand and it's FREE!    Register Now, for a Summary of the steps you must take to Protect  Your Home and Savings from Care Home Fees and possibly Inheritance Tax.  Also,you will qualify for a FREE one-to-one telephone consultation with a Registered Independent Financial Advisor  -  All with no obligation on your part at all. 

Initially, you will receive a telephone call, to arrange a convenient time for the telephone consultation. At that stage, you are under no obligation to proceed any further.

 Don't Delay, Do it Now.  It's FREE