CARE FEES
We receive many queries daily on care fees assessment and how a home can be protected from care fees and whether it counts towards the means test carried out by the local authority , so we thought we would put together some information for you .
Say you are a couple and live in a home worth £ 850,000 and as you grow older you are worrying more about ensuring it is protected from care fees so it can be passed to your children . Is there anything you can do ? Let ’ s look at how care fees are assessed and some scenarios .
Care fees Assessment When someone goes into care , the local authority will carry out a financial assessment . As part of their assessment , they local authority will calculate the cost of the care and how much the individual can contribute from their own resources .
When carrying out a means test , the local authority may consider the value of the property as well as any income , savings or pension .
It is worth noting that The Care and Support ( Charging and Assessment of Resources ) Regulations 2014 , Schedule 2 , Regulation 4 states that “ A local authority may disregard the value of any premises which is occupied in whole or in part by a qualifying relative of the adult as their main or only home where the qualifying relative occupied the premises after the date on which the adult was first provided with accommodation in a care home under the Act .” A qualifying relative is defined as a spouse / civil partner , partner , former partner , the person ’ s minor child , or a relative who is over 60 or incapacitated .
If someone has savings of over £ 23,250 , they will have to fund the care themselves .
If someone has savings of between £ 14,250 and £ 23,250 , they will need to contribute towards the cost of their care from income such as pensions and a tariff based on their capital , but the local authority will fund the rest .
Once someone ’ s capital reaches below £ 14,250 , they will no longer pay a ‘ tariff ’ income based on their capital , but they must continue paying from income included in the means test . The council pay the remaining cost of their care .
Scenario 1 Richard and Amy are married . Richard falls unwell and needs to move into a care home where he is in the best hands . Is the value of the home considered when the local authority carry out the means test ? Would Amy be liable for care home fees and could the local authority put a charge against the home ?
The good news here is that if Richad goes into care and Amy continues living in the home , then the value of the home isn ’ t considered by the local authority when carrying out the means test . This is because , as stated above , the local authority may disregard the value of any premises which is occupied in whole or in part by a qualifying relative of the adult as their main or only home where the qualifying relative occupied the premises after the date on which the adult was first provided with accommodation in a care home under the Act .” As she is his spouse , she falls under the definition of qualifying relative .
Amy would not be liable for care fees as only Richard ’ s individual ’ s assets would be considered .
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