Q – My mother needs to go into a care home. She has £30,000 in the bank a couple of small pensions. My father will be staying at home but we are worried that the local authority will take the house.
A – This is a very common concern. Firstly, in the majority of situations like this, your mother’s income will be used to pay for her care. She will get to keep £24.90 per week from her income. It may be possible to have other parts of her income disregarded depending upon her circumstances. If your mother’s income less any disregards is not sufficient to cover the full cost of her care then she may need to contribute from her capital i.e. savings or property.
Anyone with capital above £23,250 fully funds their care. Anyone with capital below £14,250 will be funded for the shortfall by the Local Authority. Anyone with capital between those figures will receive a contribution from the Local Authority.
The family home does form part of your capital but there are situations where it will be disregarded. In this instance if your father is over the age of 60 the property will be disregarded. There are some planning tools you can use to minimise the impact of care fees on your estate if you take advice before care is on the horizon. Your planning should be bespoke to your own individual circumstances. Seek advice from a professional specialised in such matters, the earlier you seek advice the more choices you have in organising your affairs which often leads to saving money in the long run. I am a specialist in Elderly client advice and can assist with both run of the mill and complex situations. Please feel free to contact me for a consultation.