We understand this maybe a difficult time accepting having help at home, though having some support whilst living in your own home can help maintain your dignity and independence. Home care offers flexibility as the care workers schedule is fit around your daily routine. Depending on the level of care you need, care costs can differ. However, when discussing funding care you could be entitled to some financial assistance, through social services, NHS continuing care, or benefits.
You will be entitled to a care needs assessment, if you require care and support needs over a long period of time. This assessment will be completed by your local authority, which will help establish if you are entitled to any funding from themselves. However, if it has been assessed you do not meet the requirements for funding, many people will determine that their main asset is the family home, benefits and/or pensions. Funding care whilst living in the comfort of your own home tends to be more cost effective rather than funding for residential or care homes, as the cost of these services tend to be assessed differently and be significantly more.
However, if you wish to continue residing at home but have not got sufficient funds, there are other options, as such financing schemes that are personalised to your unique financial circumstances, if so, advice should be sought by a qualified SOLLA advisor, or annuity-based schemes, and equity release.
Please find more information on funding for care:
Contact your local authority for a care needs assessment:
Care Fees Annuities goal is to provide indefinite constant tax-free income to cover the cost of care by paying a one-off sum to acquire the plan. Depending on your age, medical history, current needs, and the amount of funds needed to cover the shortfall will depend on the one-off sum.
However, it is important to note that the payments should be made directly to the care provider you chose, as it tends to be tax-free, which will increase the amount of care provided to you. If not and the payment is paid directly to yourself, even if you’re funding for care with it, you may be subject to tax. Care Fees Annuities will be paid for the remainder of your life.
Please find more information here:
Inheritance tax planning can be a strategic way to help fund for care costs, as it can implement various tax-saving strategies. You could potentially maximise the amount of wealth you leave to your loved ones whilst also ensuring you have sufficient funds for your care and support. Inheritance Tax mitigating can be used together with care fees planning. It could possibly reduce the amount of tax your estate will have to pay, if your assets have been assessed over the threshold amount.
Please find more information on the link regarding inheritance tax:
The two main types of equity release are, ‘lifetime mortgages’ and ‘Home reversion plans’.
This scheme is designed to help homeowners 55 years old and over release tax-free cash that is typically tied up within your property. With a lifetime mortgage you can borrow against the value of the home whilst still retraining ownership. The loan, plus the accrued interest, is typically repaid from the sale of the property. A lifetime mortgage can provide a lump sum or a regular income to help fund care costs.
If you chose this option, you typically do not make any monthly interest payments. Instead, the interest accrues overtime and is added onto the loan amount, which means that the debt will increase over time, potentially reducing the amount of inheritance left for loved ones/beneficiaries.
With this option you have the option to make monthly payments to cover the accruing interest on the loan, which in turn will prevent the amount from increasing, which potentially preserves more equity in the property for inheritance. However, if you choose not to make interest payments, the loan can potentially still switch to a roll-up lifetime mortgage.
Both types of lifetime mortgages allow you to release equity from your property, but they both offer different approaches to managing the interest on the loan. It is important for you to consider your current financial situation, and your goals when deciding between the options. It is essential to consider the impact of lifetime mortgages, as such, the interest rates, repayment terms, and potential impact on inheritance before proceeding down this route. We would advise you consult with a financial advisor who specialises in equity release, as they can support you with making an informed decision which will be tailored to your circumstances.
Find out more information regarding Lifetime Mortgages website
This is the second type of equity release schemes; regarding this plan, it typically means that you sell part or all your property to a reversion company in exchange for a lump sum or regular payments, whilst retraining the right to live in the property for the remainder of your life. It means you become a tenant but pay no rent but must maintain the property. When the property is sold, the proceeds are divided according to the percentage of ownership.
The amount you can raise from the property depends on yours and your partners age, though it can be anywhere between 35-60% of the market value of the property. This option can provide immediate funds to cover care costs, but it does involve relinquishing some and/or all ownership of the property, which again can impact the inheritance.
We would recommend that you seek advice from a financial advisor to support you with all the information for you to make an informed decision of what the best option that suites your unique needs.
Find more information on Home Reversions website
The government and your local authority will offer financial assistance, advice, and support to anyone who requires personal or nursing support.
Depending on your financial circumstance, your local authority may fund all or contribute to part of your care. It is important to note that this does not include nursing care, as that is funded under a different scheme by the NHS.
You will be means-tested to determine whether you are eligible for support with care costs; the means-test will include earnings, pensions credits, weekly income including pensions, any benefits/allowances as well as savings and assets.
However, if you would like support with funding care costs remaining to live in your own home, the local authority will not include the value of your property and they will typically not include your savings if they are below a certain amount.
Therefore, depending on your circumstances the local authority will determine how much financial support you are entitled to and how much you may need to contribute towards. The local authority may also choose to pay these funds through ‘direct payments.’ Direct payments are a way to promote independence, as the funds are typically paid to yourself, and you are giving the option to manage and buy your own care services. For more information on direct payments, please click here.
If you feel you are entitled to financial support from your local authority or need a care needs assessment, contact them today; please use the following links for your local authority.
NHS continuing healthcare is a package of care if you have complex medical needs. It covers a wide range of healthcare services, including medical, nursing, personal care provided at home. However, it can be provided in a hospice and care home. Eligibility for NHS continuing care is based on a short clinical assessment regarding your care needs. It will focus on your overall health and wellbeing rather than a specific diagnosis. The assessment will consider factors such as the nature, complexity, intensity, and unpredictability of your needs. This typically means that to be eligible you must suffer from a terminal or serious life-limiting condition; however, it is not guaranteed, and the assessment is quite strict, though we feel it is important for you to find out if you are eligible as it can help cover all care costs.
If you have been eligible for NHS continuing care, the NHS will cover the full cost of care regardless of your financial situation. Furthermore, you do not receive the funds directly and the NHS will spend the amount on your behalf stated within the care needs assessment.
Your wishes and preferences should be taken into consideration when deciding your care, for instance, if you wish to live in your own home and have care at home, the health authorities are obliged to listen.
For more information, please click here.
This is a non-means tested benefit to help anyone over the age of 65 years old who have a disability or illness that requires regular care or support. The benefit is designed to help with the extra costs associated with personal care needs. Unlike other benefits this is not dependent on whether you have a care worker, and it can be used for any purpose.
It is divided into two rates, which is depending on the level of care you may need.
which is typically for individuals who need frequent care during the day or night.
which is typically for those who need support both through the day and night.
The application involves filling out a form describing your disability and your needs, you do not need to have a face-to-face assessment.
For more information and how to apply, please visit this website.
This is for any family or friend who helps care and provide support to someone who receives Disability Living Allowance, or Attendance Allowance. This is an online application whereby it asks about what support you provide and how long this tends to be for during the week. People who do not claim any form of universal credit, and work under a certain amount of hours are entitled to Carers Allowance. If a person does claim universal credit, it will be recommended they claim the carer element through their entitlement.
For more information and how to apply visit here.
Pension credit is a means-tested benefit for people who have reached the state pension age and have low income. It consists of two parts:
If you chose this option, you typically do not make any monthly interest payments. Instead, the interest accrues overtime and is added onto the loan amount, which means that the debt will increase over time, potentially reducing the amount of inheritance left for loved ones/beneficiaries.
If you have saved money towards your retirement, then this is for you. It is an additional payment. However, this is being phased out for people who reach state pension age on or after 6th April 2016. It will be replaced by the new State pension scheme.
For more information, please click here.
This benefit applies to anyone between the ages of 16-64 years old. If you are 65 and over, you can claim Attendance allowance for extra financial support.
This is a non-means tested benefit to support individuals with a long-term condition or disability that your daily living or mobility. PIP is made up of two components, the daily living, and the mobility component. Each component has two rates (Standard and Enhanced), which is depending on the level of help or supervision needed. The assessment focuses on how your condition may impact your ability to carry out everyday tasks.
Find out if you’re eligible for Personal Independence Payment (PIP).
For more information, please use click here.
