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.
A Self Funder is usually someone who has assets of over £23,250 in the form of savings, premium bonds, property, business’ etc. As a result, they take full responsibility for the full payment of their own care home costs, whether they receive care in their own home, in a residential home or in a nursing home.
Most self funders are in long term care, and will probably remain in care for the rest of their life.
If you are “self funded” then you are responsible for paying for all expenses, relating to your personal care needs. You may be able to receive some assistance with costs, however, it may be likely that you will be expected to pay some of it back, either when you sell any property, or as a part of your estate.
If you are self funded you will be expected to pay for Care Home costs, including rent, meals etc, or in-house care, for example the costs for care assistants to visit you in your home.
You will need to pay the bills directly to the home, or service provider.
Probate is a legal process that is used upon someone’s death, to determine whether their will is correct.
Anyone who has been named as an executor of the will will need to apply for a document known as a “grant of probate” that will entitle them to sort out all the details relating to the deceased’s estate.
Sorting out the estate and affairs of someone who has died is never a quick process, as everything needs to be organised, including:
- Any property that they owned, including businesses and rental properties
- Financial assets, including money in bank accounts, savings (such as ISAs and premium bonds)
- Possessions, such as vehicles, jewellery etc.
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
An assessment of capital works by analysing certain types of savings and income, including:
- Personal savings
- Income from any business or property lets
- Attendance Allowance
- State Pensions, as well as Pension Credits
- Income from dividends
When moving your Mum or Dad into any form of care, financial matters will need to be resolved fairly quickly to determine who will be paying the bill, and if there is any extra assistance that you might be able to receive, even if you are certain you will need to self fund.
Who conducts a financial assessment, and what will they do?
Financial Assessments are conducted by the local council, and are free of charge. Their job is to determine whether or not the individual/s need their assistance to meet the financial costs of care, whether moving into a care or nursing home, or receiving care in their own home.
Whether you are told that a loved one needs to move into care, or you make the decision to for yourself, the first thought on your mind is most likely to be: Who is going to pay for care? Ultimately, this will be decided via an assessment that will be conducted by your local authority.
The assessment will look at assets such as any money in bank and savings accounts, as well as income from property, businesses etc.
If they own property that will still be the home to someone, it will not be included in the overall summary of assets.
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.