Here?s the latest on this important topic – so will you still be forced to sell your home if you have to go into care? Probably is my answer… Contact us if you want to talk about it.
At the moment 20% of those in care end up paying more than ?75,000 a year. Even if you have to pay half this figure, within it is a cap of paying up to ?12,500 for accommodation, food, heating and so on, and for most of us, the only way to fund it from the start will be to start cashing in assets.
And another thing; the Government have also reneged on increasing the Inheritance Tax ?nil rate band? threshold until at least 2019 which will trap more and more people into paying ?death duties?. Concerned? Please ring us on 0800-083-1374
The Inheritance Tax allowance has not changed since 2009, but if it had been allowed to grow with inflation it would reach around ?420,000 by 2019, so they are very clearly taking money off us with both hands.
For those less well off, they have raised the upper means-test threshold from ?24,500 to ?123,000 with a sliding scale of support. So you can imagine the situation where a widow has very little savings and a modest house worth (say) ?150,000. Her pension is highly unlikely to meet the accommodation charge and care fees due on?a weekly basis, so she could?still have to use her own assets including selling her home to pay her own way.
Only the last ?14,250 is expected to be fully protected, as in the current system. Back to our example of the widow paying her own way; when her own money reaches the lower threshold, the Council could then refuse to pay her standard weekly fees and force her into cheaper accommodation, or even seek help from her family to pay the top up fees.
Of course there is still the claim made by Ministers that nobody will be forced to sell their home during their lifetime, because everyone has the right to defer paying until after their death. Talk about ?having your cake AND eating it?.
We simply cannot win. But did we ever expect to?