Care home at old age - money?

SteveyJC

Hi All,
I'm wondering if someone can help. This regards a married man in his seventies with a reasonable amount of saved money, shares and premium bonds.

His main worry is if somewhere down the line he was taken into a care home (nursing home), would the governemnet take his assests to pay for the care? Is there a sensible way to avoid this (or a lot of this) - i.e put the money, shares etc into joint names with his wife?

Any help would be appreciated!
SC.

sunshinejoclaire

http://www.direct.gov.uk/en/CaringForSomeone/CareHomes/DG_10031525

Yes, they would use his assets to pay for his care - more info at that link.

I don't have any advice on avoiding though sorry as it is not something I have ever encountered yet!

dunstonh

There are ways to reduce the impact of what is and is not included in the means test. The investment bond tax wrapper for example is not included in the means test. However, you cannot take something out with the intention of it only being done to avoid it being included in the means test. That is deprivation of assets and it would be allowed to claw it back into the means test. However, if there are other reasons why that action has taken place (i.e. tax efficiency, lower charges etc) and its documented as such then the that should be fine.

If it is already known or expected that care is going to be or likely to be required, then it is too late. Any action taken then would be considered deprivation of assets.

margaretclare

sunshinejoclaire wrote: »

http://www.direct.gov.uk/en/CaringForSomeone/CareHomes/DG_10031525

Yes, they would use his assets to pay for his care - more info at that link.

But only HIS assets, not those belonging to his wife. For example, if they have joint savings then 50% are his and 50% hers.

Niggles

margaretclare wrote: »

But only HIS assets, not those belonging to his wife. For example, if they have joint savings then 50% are his and 50% hers.

As I understand it the process is that "HIS income and assets" (as above) from state benefits, private pensions, dividends, etc will be taken into account in working out his contribution. However, if "HE" has capital above £23,000 he will be expected to pay the full cost of the home (this figure is for 2009-10 and subject to yearly change). Also, some of his savings below this figure will be taken into account. If he has a spouse, then their financial needs are taken into consideration.

The value of his home will be totally disregarded if:-
His spouse or partner, who lived with him as if you were married, still lives there
A close relative, who is over 60 or who is disabled, still lives there

Batchy

I thought the government were bringing in some "insurance" that you pay a lump sum 20k on retirement, and then assets go untouched.

Im sure its too soon to talk about it at the moment, but I know its something the tories were talking about in TV leadership debates.