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In most cases, if you are entled to financial assistance from the local council towards the cost of the care home fees, you have to use all of your income, including pension Guarantee Credit if you receive it, as a contribuon towards the fees. However, some types of income are not included in the council calculaon. These include: ¨ ¨ ¨ ¨ ¨ The mobility component of Disability Living Allowance The War Pension Scheme mobility supplement War Widows special allowance (also refed to as War Widows special payments) Some charitable payments Pension Savings Disregard If you receive financial assistance towards the fees from your local council, your Aendance Allowance or Disability Living Allowance care component will stop aer you have been in a care home for 28 days, you will be allowed to keep a Personal Expenses Allowance of £22.60 per week, which you can spend as you wish. Capital in Bonds Currently when your local council assesses your finances, they are allowed to take in to account any income you receive from bonds, with or without a life assurance. Councils must disregard the capital asset of an investment bond which contains one or more life insurance policies with cashing-in rights for total or paral surrender. The surrender value of an investment bond without life assurance is taken into account. Tariff Income Any actual income you receive from capital, such as interest, is not counted as `income’ but is added to and treated as capital. For savings between £14,250 and £23,250, with every £250 or part of £250 you have, you will be assumed to have a £1 a week `tariff’ income. This amount will be added to the assessment of your weekly income. Therefore, you will need to take this weekly amount toward your fees from your capital savings. Occupaonal and private pensions During your financial assessments , the council must ignore 50 per cent of your occupaonal pension as long as you use the whole of that half to support your husband or wife at home. The same rule applies if you receive income from a rerement annuity. This rule only applies to married couples and civil partnerships. If you are not married or have a civil partnership and you would like to use some of your pension to support your partner at home, you will have to ask for your personal expenses allowance to be increased under the discreonary rules. Insurance policies Any form of income from an insurance policy is generally taken into account in full. The only excepon is income from a mortgage protecon policy. Visitor website for more informaon: www.foxboroughconsultants.co.uk To find out how we can help contact us on 0333 069 0269
How do I protect my home and assets from care costs? If you fail to act now - ¨ ¨ ¨ ¨ Your home may have to be sold to pay for your long term care costs. Your savings and investments could be wiped out. Any income would be assessed and used towards the cost of your care. Your children and grandchildren could lose their entle inheritance. How Do I Protect My Home And Assets From Care Costs? Most of us work very hard over the years to buy our own homes and build up our savings for our rerement and would like to leave a “lile something” for our children and grandchildren aer we are gone. Unfortunately, the costs involved in moving into a Care Home can literally wipe out your enre savings and your home may have to be sold to pay for care fees. This could mean that your loved ones could receive very lile, or even nothing at all of what you originally intended them to have. When someone enters care they are automacally “means tested” and ALL of your assets, including your home are taken into account. Only those who have very few assets will escape the costs of care. Simply changing the way you own your home to what is known as Tenants in common , combined with the appropriate trust planning, will effecvely ensure that your property is fully protected should either of you enter care. So what about my other assets - my bank accounts and savings? Once again, changing the way your assets are invested and held can ensure that your cash or liquid assets are also protected from care. At Essenal Wills and Trusts our team of qualified advisors are all able to advise on all aspects of care planning and provide you with the correct strategy to ensure that all your assets are protected. So what can be done? Firstly, it is important to safeguard your home and the first steps is to look at the way you currently own your home. The majority of people own their homes jointly, which means that the first death, the survivor would then own 100% of the full property value, this is when your home becomes vulnerable to aack from care.
Page 1 and 2: Why do I need a will? Without a Wil
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Page 7 and 8: Deed of Variaon Your inherited weal
Page 9 and 10: What is the role of an Executor? Be
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