Families Are Paying Massive Care Home Bills They Do not Need To


Families Are Paying Massive Care Home Bills They Do not Need To

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With Britain’s population ageing fast and greater numbers of people unable to control their finances unassisted, a record 250,000 powers of attorney are being registered each year. The attorney system enables family members and others to take legitimate control of someone else’s affairs.

Source: Power of attorney: how flawed system cost one family £30,000 – Telegraph

What needs to be revealed here is it has been shown that those who have to pay their own way are billed around £12,000 a year more than a local council would pay for an identical place. Care home operators say that they have no choice other than to charge a higher rate for self-funders or face going out of business because cash-strapped councils have been squeezing the rates they pay.ES IN YOUR HOUSE

If you own your property but your spouse remains in it when you go into a care home, the local authority cannot take it into account for the purposes of their financial assessment, and so must ‘disregard’ it. The same applies if it is occupied by another family member, as Miss Walford successfully argued: a relative who is aged over 60, or who is incapacitated, or is a child. The local authority also has discretionary powers to disregard the value of the property where it is the home of someone who has been caring for the resident for a substantial period of time.

ACT EARLY TO PROTECT ASSETS

Assets should not be given away at the last minute but can be protected as part of long-term estate planning. So act early, when you are fit and well and unlikely to require imminent residential care. Otherwise there is a risk of falling foul of the ‘deliberate deprivation’ rules which would allow the local authority to challenge the transfer of an asset.

By planning early enough, homeowners can transfer their whole property, or part of a property, to someone else and then rent it back from the new owner (although advice should be taken with regard to inheritance tax implications).

RELY ON A TRUST

An elderly person could transfer the ownership of a property into a lifetime discretionary trust. This would allow you to go on living in it, with the ownership of the property going to a relative on your death. Again, this has to be done early and as part of estate planning strategy.

The most common form of trust is a life interest trust, whereby half the value of your home, up to the inheritance tax threshold, is put into a trust on the death of the first spouse, for the benefit of children. The surviving spouse retains a life interest and the property cannot be sold until they die. 

00:25, 14 June 2014

Paying for Care Home Fees – Who Pays for What?

Who qualifies for local authority financial assistance?

If you have been assessed as needing a care home place and your capital is below £23,250, you should be entitled to financial support from your local authority. If you have capital below £14,250 you will be entitled to maximum support although you will still contribute your income less £23.90 per week retained for personal expenses. If you have capital between £14,250 and £23,250 you will also pay a capital tariff of £1 per week for each £250 or part thereof between these two figures.

What happens if I move into a care home independently and run out of money?

Once your capital reduces to £23,250 you can seek local authority assistance. However, if the home costs more than the local authority usually pays and won’t reduce its fees, you could be in the difficult situation of either finding a source of top-up or seeking less expensive accommodation, the move to which could be detrimental to health and well being. If there is a likelihood of running out of money it’s important for you to arrange an assessment of your care needs with the local social services department to ensure they will step into help. Also check if the care home owner can continue to accommodate you at social services funding rates, or will require a third party top-up.

What happens if I move into a care home independently and run out of money?

Once your capital reduces to £23,250 you can seek local authority assistance. However, if the home costs more than the local authority usually pays and won’t reduce its fees, you could be in the difficult situation of either finding a source of top-up or seeking less expensive accommodation, the move to which could be detrimental to health and well being. If there is a likelihood of running out of money it’s important for you to arrange an assessment of your care needs with the local social services department to ensure they will step into help. Also check if the care home owner can continue to accommodate you at social services funding rates, or will require a third party top-up. Continue reading

Child and Elderly Protective Services

Northampton People – Abandoned by Conservatives « David …

Power of attorney: how flawed system cost one family £30,000 – Telegraph

Do your own research

Do your own research

 Image by © Royalty-Free/Corbis

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About towardchange

Your ‘Family Rights’ believing in the best interest of children. The issues which are important to me are, children and their families, the injustices to parents, which may occur, because of inadequate information, mistakes or corruption. This is happening every day. every minute and every second. For years I have campaigned for the rights of children and their voices to be heard.
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