Care Home Fees

As life expectancy increases, more people are facing the possibility of needing long-term care in later life. While many find comfort in the idea of receiving quality care in a care home, the associated costs can be a significant concern. Care home fees in England and Wales can be substantial, potentially impacting your savings, property, and overall estate. At Blackstone Solicitors, we understand the importance of safeguarding your assets while ensuring you receive the care you need.

Contact us today and we can talk you through our services and how we can help you and your family. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will give you a call back as soon as possible.

At Blackstone, we always aim to provide the best service possible. Meticulous in our approach, we will make sure everything is dealt with as you wish and will keep you updated throughout the legal process, ensuring that you always know of any developments.

“I received very good service and advice, given to me on a week by week basis. I would strongly recommend Blackstone.”

– Paul

Our Services

We can provide help with a wide range of matters relating to Succession Planning, including:

We have partners we work closely with that can advise upon:

Tax Planning including advising on capital gains tax and income tax for individuals, businesses, landed estates, professionals, entrepreneurs and advice on matters including business relief, exemptions and retirement planning.

Understanding Care Home Fees

The cost of residential care varies depending on location, the level of care required, and the quality of the care home. On average, care home fees in England and Wales can range from £600 to over £1,500 per week. This means that long-term care can quickly deplete your savings and assets, particularly if you require care for several years.

In England, if your assets exceed £23,250, you are required to pay for your care in full. This includes the value of your home, which can be a significant portion of your estate. Once your assets fall below this threshold, the local authority may step in to contribute to your care costs, but you may still be required to make contributions based on your remaining income and savings.

Legal and Ethical Considerations

It is important to note that deliberately depriving yourself of assets to avoid care home fees, known as ‘deprivation of assets’, can lead to complications. Local authorities are empowered to investigate cases where they believe an individual has intentionally reduced their assets to avoid paying care fees. If they determine that assets have been deliberately disposed of or transferred, they may treat you as if you still own those assets, potentially leaving you liable for care costs.

Therefore, any steps taken to protect your assets should be made well in advance of any foreseeable need for care and should be approached with caution and proper legal advice.

Strategies to Protect Your Assets

There are several legitimate strategies to protect your assets from being depleted by care home fees. These methods should be tailored to your specific circumstances and considered as part of a comprehensive estate planning strategy.

Gifting Assets

One of the most common strategies is to gift assets to family members or other beneficiaries. By reducing the value of your estate, you may be able to avoid or reduce care home fees. However, gifts must be made at least seven years before you require care to avoid them being considered part of your estate for inheritance tax (IHT) purposes. Additionally, gifts made with the intention of avoiding care fees can be scrutinised by local authorities, so it is crucial to seek legal advice before proceeding with this option.

Setting Up a Trust

Establishing a trust is another effective way to protect your assets from care home fees. A trust allows you to transfer ownership of your assets to trustees, who then manage them on behalf of your beneficiaries. There are different types of trusts, each with its own advantages and limitations:

Life Interest Trusts: These trusts allow you to transfer your home or other assets into a trust while retaining the right to live in the property or receive income from it. Upon your death, the assets pass to the named beneficiaries, such as your children. Since the assets are owned by the trust, they may not be considered when assessing your eligibility for care funding.
Discretionary Trusts: In a discretionary trust, the trustees have the authority to decide how and when the assets are distributed to the beneficiaries. This type of trust offers greater flexibility and can be useful in protecting assets from care fees while also managing inheritance tax liabilities.

Setting up a trust requires careful planning and legal expertise to ensure it is structured correctly and in compliance with relevant laws. At Blackstone Solicitors, we can guide you through the process, helping you choose the right type of trust to meet your needs.

Joint Ownership of Property

If you own your home jointly with another person, such as a spouse or civil partner, you may be able to protect your share of the property from care home fees. By severing the joint tenancy and converting it into a tenancy in common, each party owns a distinct share of the property. This allows you to leave your share of the property to someone other than your spouse or partner, such as your children, through a trust.

If your spouse or partner remains in the home after you move into a care home, your share of the property may not be considered when assessing your assets for care fees. This strategy can be particularly effective for married couples or civil partners.

Equity Release

Equity release allows you to access the value of your home without having to sell it outright. This can be done through a lifetime mortgage or a home reversion plan. While equity release can provide funds for care home fees, it also reduces the value of your estate and can have implications for your beneficiaries. It is important to consider this option carefully and seek independent financial and legal advice before proceeding.

Deferred Payment Agreements

If you are unable to pay for care home fees upfront, you may be eligible for a deferred payment agreement with your local authority. Under this arrangement, the local authority pays for your care, and the costs are recovered from your estate after your death. This can provide peace of mind by allowing you to keep your home during your lifetime, although it does not protect your estate from being used to pay care fees after your passing.

Our Approach

We are 100% committed to ensuring each and every one of our clients receives the highest quality service and we will go the extra mile to ensure that you are happy with the results gained. We understand it can be particularly difficult to deal with matters relating to death and inheritance, and this is why our friendly and approachable team always take a sympathetic and understanding approach, ensuring that you receive the support you need.

We believe communication is of the utmost importance. We will therefore keep you updated as things develop and our solicitors will provide practical, straightforward legal advice so that you can be confident everything is progressing as you would like.

Get in Touch

Contact us today to discuss any matter relating to Succession Planning. We can talk about your situation in depth and get to the bottom of what you need and how we can help. We are here to answer any questions which you have, and we aim to make everything as simple for you as possible.

Our team is approachable, professional and vastly experienced. We will do everything in our power to help you get the outcome you need. Call us on 0345 901 0445 or, if you would prefer us to contact you, leave your details via our online enquiry form.

We offer our services to clients in Manchester, Chester, Cheshire and throughout the rest of the UK. We also have an office in London.