Pension in regard to assesment for nursing home care

Cloudyday

I am over 70 and recently took out a new pension scheme with an online company (Nutmeg) with my 20% going in from HMRC etc, it is going OK Can anyone tell me if the capital (Like my house) would be included in assessment for contributions for care or just its income? Any residuals at the moment in my will and instruction to the company are for a split with my family this is important as a lot of my saving may end up in the plan..

xylophone

If you need to go into a care home and are seeking Local Authority funding, your assets (including pension income) are taken into account.

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS10_Paying_for_permanent_residential_care_fcs.pdf?dtrk=true

Cloudyday

I realised that it was the residual capital I was enquiring about if all the pension was not exhausted at the end assuming draw down etc.

xylophone

If you go into a care home as a self funder, then how you pay your fees is up to you - you might use capital or income.

If you have other income/capital as well as a SIPP, then you can choose whether or not to take income/capital from that SIPP to pay your fees.

You might choose to leave it intact and use other capital or income to pay them.

If you have used all other assets then you will need to look to the SIPP.

If there is cash/other in the SIPP at your death, then presumably it will be treated under SIPP rules/as directed in your letter of nomination.

https://www.youinvest.co.uk/pensions-and-retirement/accessing-your-pension/sipps-and-death might be worth a look.