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Financial planning for your elderly relatives’ care
With an ageing population, it’s becoming harder and harder to plan for future care, especially if you’re already at an age where you have an elderly relative to take care of.
This month we’ve decided to create a list of ways that should help you when you’re financial planning for your elderly relatives’ care. Please remember though, this is just advice. We would always recommend asking an FCA-approved advisor for in-depth help before making any major decision.
How much will you need to pay?
This all depends on your overall health, mobility and current dependency. The total payment will also be reflected in the amount of help and support you’ll need from either carers or family.
For example, if you are still relatively able-bodied, you would have to pay less compared to those that have less mobility than yourself. Likewise if you need to take medication on a regular basis, you may have to pay more compared to those that don’t.
The local authority should complete a means test to establish how much you’ll have to pay for your care. This takes into account your current assets including savings, your home, vehicles and other physical items. If these assets total more than £23,500 then you won’t receive any additional help and will be classed as “self-funded”.
Unfortunately, this £23,500 bracket does take still into account the value of your family home.
So do you have to sell your current home?
As we’ve already explained, the value of your current family home does count towards your total asset amount. However, this doesn’t mean you have to sell if before making a move into permanent care.
There are some cases where the value shouldn’t apply in a means test. When a family member, spouse or partner aged over 60 lives in the family home, value isn’t taken into account.
At the same time as this, the value of your home won’t be taken into account if your care needs are classed as “temporary”. This means that if you’re only going into care on a temporary basis, you don’t have to worry about the total cost.
What help can you receive?
There are several schemes that you’ll be able to benefit from whilst you’re in care. These include:
- Attendance Allowance
- Disability Living Allowance
- Personal independence payment (this will be replacing the Disability Living Allowance)
None of these are means tested and you can still claim them even if you’re paying for your own social care. This means that regardless of your current income (e.g. from a rental property) or savings, you’ll be able to receive help towards the total costs.
For more information on each of these different types of allowance, take a look at the Money Advice Service website here.
Seek advice from a professional
As we’ve already explained, the best thing you can do is to seek financial advice from an FCA-approved professional. They are specially trained to help with all aspects of personal finance and will be able to point you in the right direct. For more information on finding an advisor, take a look at the FCA website here.
So there we have it, our top tips on how plan for your elderly relatives’ care. What do you think? Have you found yourself in this situation and had to rethink your finances?
We’d love to hear your thoughts, so get in touch with us on Facebook here or on Twitter here, and share your own experiences. You never know what how much your insights could help others in the same situation.
@ Care Quest