Residential long term care is means tested. Those whose savings exceed £23,250 are expected to pay for it themselves. If they are leaving their home to go into care and no-one else lives there, this ‘capital threshold’ includes the value of their home.

The only exceptions to the capital threshold are those individuals whose needs are sufficiently acute to receive ‘continuing NHS care’ and also those sectioned under the Mental Health Act who receive care as part of their treatment. Those liable to fund their own care, (known as ‘self-funders’), will pay for their care until their capital falls below the threshold. After this they are eligible for a degree of council assistance. However it is not until they have less than £14,250 left that they only have to contribute any income they receive e.g. pensions.

Those who arrange the payment of long-term care (LTC) without taking advice may run a greater risk of running out of money. Simply drawing on a fixed sum can result in a sudden shortfall and the inability to continue with a certain level of care. It is therefore essential to evaluate the sources of income available and any state entitlements available in addition to understanding the full cost of funding care over a long period.

Our specialised advisers can help you to monitor how long your capital can be used to fund for LTC. They can also advise on the level of care that can be afforded, and offer advice on regular income plans such as annuities to ensure that care can be paid for throughout the period of care. Having the right information will enable you to make the best choice about the care you require, giving you and your family peace of mind in the future.

To discuss long-term care in more detail please call us on 0800 6342 111