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This website contains information which may or may not be applicableto your own situation and circumstances.

Any information or advice on this site does not constitute a personal recommendation. If you have any doubts as to whether a product or service is suitable for you, please seek independent advice.

Care Fees Advice

It is a fact that often the people who are most thrifty throughout their lives then end up being penalised again in ill health or death!

You pay tax on income, then tax on property, on any investment gains, even on your pensions and then you get further penalised for having the assets at time of illness or death. Aisa feels this is very unfair and we strive to avoid this for clients.

This section concentrates on Care fees but we have others that look at Inheritance Tax.

Self Funding Limits for Care Fees

You may need to fund some or all of your own care fees if your estate (your whole worth, house, assets, investments net of liabilities) is valued in excess of:

• £22,250 - England and Northern Ireland
• £22,000 - Wales

Who will the government currently help?

Generally, the State will pay care fees for Health Care but it will not pay care fees for Social Care.

In addition, the State will only offer care fees funding to people who have small amounts of savings and assets. Currently, public care organisations are only obliged to offer care fees funding for people with fees whose assets are under certain capital limits.

Health Care is medical care

Medical care is provided by the National Health Service (NHS). You will not normally be expected to pay for health care, such as:

• Physiotherapy
• District nursing
• Incontinence materials

If you have a medical need it should be funded by the NHS.

Social Care is everything that is not medical care.

We can only give you examples (as listed in a Long Term Care guide from the CII) of social care:

• Equipment for assistance with activities of daily living e.g. walking frames, toilet boosters
• Meals on wheels
• Home helpers
• Carers (non-medical)

If you have social needs, generally for activities of normal life such as eating, shopping, dressing, going to bed, cleaning, gardening, social care will not be funded by the NHS.

Means Testing

A care means test looks at your whole estate as previously written, as follows:

Under the Charges for Residential Accommodation Guidelines (CRAG), Local authorities will be required to contribute towards the residential care costs based upon the following:

Upper Capital Limits

• £22,250 - England and Northern Ireland
• £22,000 - Wales
• £21,500 - Scotland

Lower Capital Limits

• £13,500 - England and Northern Ireland
• £19,000 - Wales
• £13,000 - Scotland

Above Capital Limits - If, following a care means test, your assets are above the upper capital limit, you will be required to fund your own social and accommodation care costs, although you may receive a contribution towards costs

Between Capital Limits - If, following a care means test, your assets are in between the upper and lower capital limits, the local authority may fund your own social and accommodation care costs subject to a tariff income calculation and then a full income assessment. You will still receive a contribution towards nursing care.

Below Capital Limits - If, following a care means test, your assets are below the lower capital limits, the local authority may fund your own social and accommodation care costs subject to a full income assessment. You will still receive a contribution towards nursing care.

FACTOID - According to the General Household Survey, nearly 40% of people aged 65 - 74 and nearly 50% of people aged over 75 said they had a long-standing illness that limited their lifestyle. It is therefore more than possible that you will need care at some point.

Estimated 40,000 Homes Sold for Care Fees Self Funding

To afford to self fund your care fees, you may have to sell your assets or your home to raise the money.

If you do not sell your home and cannot afford to self fund your care fees, the local authority will normally wait until you either pass away or sell your property and move. They will then send their care bill for your care fees and recover any fees.

Long term care fees insurance

There are various options available to you when applying for care fees insurance cover, depending on the type of care fees insurance policy you want and how much care fees cover you would like to plan for. Usually the providers of care fees insurance offer you a budget cost insurance, a standard cost insurance and a higher cost insurance. You can choose which one suits your finances and your choice of benefits.

MORE INFORMTION IS AVAILABLE HERE.