Self Funding Care
Help self funders understand their self funding care options; understand care funding jargon and help to guide your self funding care actions.
The Alzheimer’s Research Trust 2010 predicts that ”there are around 820,000 people in the UK with dementia…Dementia has no gender barriers and affects both men and women.” (DementiaUK)
These statistics are quite alarming, because sadly, there is very little can be done.
A big concern for the family of anyone with Alzheimer’s Disease, is knowing what will happen to the financial side of things – especially once they become incapable of making decisions for themselves. This is where the Court of Protection is necessary.
According to Gov.uk: “The Court of Protection makes decisions and appoints deputies to act on behalf of people who are unable to make decisions about their personal health, finance or welfare.” Read More
If you are about to move a loved one into care for the foreseeable future (not on a temporary basis) and have the money available, you could choose to invest money in an immediate needs care plan.
Sometimes referred to as an annuity, an immediate needs care plan is like an insurance policy that guarantees an income for as long as they are in care.
With this plan you are able to live in the confidence that all of their care needs are fully paid for, without the worry of money running out. How much money that is needed to pay into an immediate needs care plan depends on the current annuity rates combined with a variety of factors, including:
Giving someone a portion of your assets, as a financial gift for example, is often referred to as deprivation of assets. Most people want to take the opportunity to divide their assets amongst their children and relatives, whilst they are still able to, and without the hassle of a will. However, if you gift someone money when you are about to move into Care, things can become complicated.
A self funder is someone who pays for their care costs using their own money.
They are called self funders because they are ultimately funding themselves, rather than the costs being met by the local authorities. Read More
Planning ahead to later life typically makes most people think of writing a will. However, just as important as a will, is appointing someone to be your power of attorney.
An attorney is someone who acts on your behalf handling both legal and financial matters. Normally, their job won’t come into force until you are considered incapable to make decisions for yourself.
Nevertheless, sometimes an attorney can work on your behalf if – for any reason – you are not able to perform them yourself. For example, if you are unable to get to your bank to deal with your money, an appointed attorney can act on your behalf, withdrawing money, paying bills etc.
Self funding your care can be complicated and stressful, but the key to making life a little bit easier is knowing where to start.
The best place to start is by finding out if you are entitled to any form of financial assistance, because even if you have more than £24,500 in assets there may still be help available to you.
For example, if a property has been included in your assets and once the property has been taken out of the equation, you do not have enough cash from self funding to cover the costs for your care home, you may be offered help. This is often discretionary, and is often only for a period of twelve weeks. If after the initial twelve weeks you still own your property, the council may continue to help you financially on the agreement that anything paid to you will be repaid either when the property is sold, or as part of your estate when you pass away.
If you are moving into a care home, but do not wish to sell your property, you will be entitled to a Council Tax Exemption, on the stipulation that your home remains empty. However, if a family member moves into your home in order to look after it, they will be liable to pay council tax.
There are two predominant reasons why you might self fund your care home. The first – and most common – is because you have more than £24,500 in savings and/or assets and have therefore been considered capable of supporting your own care needs. The second reason is because you have made the conscious choice that you would prefer to self fund.
In other words, there is nothing that says that you have to accept any kind of assistance paying for your care home. There are many reasons why people prefer to self fund, including the idea that self funding allows more independence regarding choices that are made regarding your overall care, such as where you live.
Many people confuse nursing care with residential care, and that’s understandable because they are very similar.
However, it is important to distinguish between the two so as to help you to understand how nursing care works.
Residential care is when you move into a care home, and are looked after by trained care workers.
This is the ideal option for you if you struggle to do things by yourself, but do not have any serious illnesses or disabilities.
Nursing care, on the other hand, is essentially the same as a care home, however the care home will be registered as a nursing home, and instead of care assistants, you will be looked after by fully qualified nursing staff.
Nursing care is typically recommended for anyone whose health has deteriorated and would benefit from round the clock medical care. Nursing care is not exclusive to later life, but anyone with a serious illness or health problem may be referred to nursing care.