Once the decision has been made to go into a care home and it has been established that you will need to self fund, there are various ways that you can use your existing capital to pay for the fees. One way is purchase an Immediate Needs Care Plan; this is a long term insurance product which aims to pay part of all of the costs of an individual’s care during their remaining lifetime in exchange for a lump sum payment. The plan will pay a regular, tax free income to your registered care provider, starting immediately on commencement of the plan.
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.
One way to obtain capital when care is needed is to sell your home however, if you are not yet ready to go into a care home and just require care at home then this will probably be an unsuitable option. There is another way of raising funds from your home without the need to move out of the property or to sell it; this is known as equity release.
There are two main types of equity release; Home Reversion plans and Lifetime Mortgages.
People with disabilities, mental health problems or learning difficulties are often cared for at home by paid or voluntary caregivers (such as family and friends), with additional support from home care agencies.
If home based care is not available or appropriate, then residential care may be appropriate.
Residential care will typically provide accommodation, meals, laundry, a programme of social activities as well as help with day-to-day basic care needs such as washing and dressing where required.
The Care Act 2014 will come into effect from April 2015 and is an overhaul of social care in England.
Fundamentally, the Act reforms how the law works and has prioritised people’s well being, needs and goals.
Councils must enable people to access independent financial advice to help steer them through the complexities of care funding.
Respite care is provided by residential homes for elderly people who require addititional support following an operation or illness, or to provide a regular carer with a well earned break.
Once an assessment has been undertaken, a care plan will be provided. This doesn’t necessarily mean that a person has to go into a residential or nursing home permanently. Often providing domiciliary care is preferable for the individual as they remain in their own surroundings and retain a level of independence.
Respite care can aso be provided where an individual has a short stay in a home to provide respite for either the individual or their carer.
Each year, thousands of people are told they have to self fund their long term care. At a time fraught with uncertainty and high emotions, it is only natural that an array of questions bubble to the surface. “How do I generate enough income to pay for my care?”, you might ask. “What type of care do I need?” “How do I protect my savings and family inheritance?” “Do I have to sell my home if I move into care?”.
Your local authority has a duty of care to carry out an assessment under Section 47 of the National Health Service and Community Care Act 1990. Once your needs have been assessed, you will be advised of the type of care that is appropriate.