How to pay for care home fees

The thought of moving into a care home can be daunting enough without having to worry about having to pay for the fees as well.

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When the time comes, the local Health and Social care trust will work out how much you need to pay in fees after looking at your financial assets which include any pension, savings and investments you may have. They also take into consideration whether you own property. Your home is classed as an asset twelve weeks after you move into a care home.

If you have over £23,250 in capital, then you are liable for the care home fees yourself. If you have between £14,250 and £23,250, you will be liable for some of the care home fees yourself and if you have under £14,250 then you will not have to pay any fees.

Many people worry about having to sell their home in order to pay for their care home fees as this is usually their biggest asset. However, there may be other options available:

Live in Care

A live in care approach means that the carer moves into your home with you. You don’t have to give up any of your existing comforts or move out of your own home. Live in care also means that you would be able to stay with your partner rather than having to live separately. There are different care packages available if you choose this option.

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Rent your home out

It may be that you can rent your home out rather than selling up to cover the costs of care home fees. Speak to a local letting agency to see if this is a viable option for you.

Set up a family trust

This is a trust that can be set up while you are still alive. It enables you to gift your assets to family members. This means that you would have fewer assets to be assessed and may mean that part or all of your care home costs would be covered. However, it is not legal to give away assets solely for the purpose of avoiding care home costs. Speak to a solicitor before making a decision as a trust can be a complicated issue and you need to make sure that it is set up properly and complies with the law.

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