Mum or Dad Moving In To A Care Home?

When an older relative is considering moving into a care home, often leaving the family home in the process, the question inevitably turns to how to pay the fees for that care home.

The decision whether or not to sell the family home is usually central to the care funding question.   

For some people, a proportion or all care fees can be covered by any income you may have. This could be made up of Attendance Allowance, other benefits such as state pension, any workplace or private pension income and any other income you may have.

If the house is retained, it can also still help to pay for care. Deferred payment agreements are available, which is where the Local Authority allow you to use the value of the home to pay for care costs (to be settled later). Another option might be to rent out the property to obtain an income to help pay care costs.

Alternatively, deciding to sell the property means potentially one less thing to worry about. The proceeds may provide some flexibility through having cash in the bank. There are investment options that could be suitable to help manage and grow the money and draw from as and when it is needed.

There is also the option to purchase an immediate needs annuity or immediate care plan. This entails paying out a fixed amount to the care home and ensures care is paid for, tax-free, for life.

There are of course pros and cons to each of these options and what is appropriate for one family, absolutely won’t be for the next. It is vital to explore the possibilities with a full care-funding financial review before deciding what is best for your circumstances.

We have expertise in helping those in later life and their families make a bespoke care-funding plan which gives peace of mind and clarity when making these crucial decisions.

To book your complimentary long-term care financial planning review withone of our advisers, call 0117 3636 212 or email office@haroldstephens.co.uk.