Can care home fees be avoided?
People with assets (savings, investments, income) of over £23,250, including qualifying property, are expected to pay the costs of their care home fees. This can result in people’s savings being used up and may even mean that they end up having to sell their home. The exception is if they qualify for NHS Continuing Care. Find out more
For some, the temptation is to avoid care home fees by trying to get the local authority to pay for these fees. However, local authorities are increasingly employing ‘care home fees avoidance officers’ to help clamp down on such moves, meaning that any scheme which promises to help you avoid selling your home or reduce your assets should be treated with extreme caution.
Preparing for care home fees
If you want to ensure that your assets are protected when you need care, it is advisable to find out about the funding options that are available and how these can help.
- Buying a long-term care or immediate needs annuity. This type of annuity provides a regular income to pay care home fees. It guarantees to pay out for the life of the care recipient. It is possible to set up the annuity to increase each year or to leave a death benefit in the event of an early demise. A large, single payment is needed for the initial purchase.
- Deferred care annuities are also available, if you wish to fund your care yourself initially, and then have the annuity plan pay out after a set period (usually 1 to 5 years).
- Use your home to fund your care. Find out how your home can be used to help fund care either through renting, selling, downsizing, releasing equity or a deferred payment agreement
Click to learn more about your funding options
Get specialist care funding advice
A specialist care fees financial adviser can help you work out the best way to fund your care and get specialist annuity quotes for you. You won’t be able to find out how much a long-term care annuity will cost without advice. Click to find a specialist adviser
close to you or read more about how specialist care advice
can help you.