41 lawton road, alsager sT7 2AA
Over 1 million People
In the UK are living with Alzheimer’s disease or another form of Dementia.
Understanding the Costs
The average cost of a month in residential care is around £4000 rising to £6000 or more for nursing care.
Over the last 30 years...
Successive governments have attempted to reform adult social care funding, but no long-term solution has yet to be implemented.
How is care paid for?
If an adult in England requires care, the Local Authority will usually conduct a financial assessment know as a means test.
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Property
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​Savings
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​Investments
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Certain pension income
​In England, individuals are generally expected to contribute towards their care costs until their capital falls below £23,250. Once assets reduce further to £14,250, the local authority may meet the full costs of eligible care, subject to assessment.
In Wales, the capital threshold is currently £50,000, meaning individuals may receive financial assistance sooner than in England.
The Family Home
For many families, the home is their most valuable asset and often the greatest concern when care is need.
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The good news is property is not normally included in a financial assessment if it continues to be occupied by:
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A spouse or civil partner
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A Partner
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A Close relative aged 60 or over
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Certain dependent or disabled relatives
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However, where a property is included in the assessment, the local authority may offer a Deferred Payment Agreement. This allows fees to be paid on the individuals behalf and recovered when the property is eventually sold. Interested and administration charges may apply.
Transferring Property and Deprivation of Assets.
Many people believe that giving away their home or transferring assets to family members will automatically protect them from care fees. Unfortunately, this is not always the case.
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Local Authorities have the powers to investigate transactions where assets have been given away or transferred to reduce a person’s ability to pay.
What Is Deprivation of Assets?
Deprivation of Assets occurs when someone intentionally reduces the value of their asset in order to qualify for Local Authority support with care costs.
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If the Local Authority believes this has happened, it may assess the person as though they still own the asset, even if it has been gifted or transferred.
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Examples That May Be Treated as Deprivation:
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Gifting large sums of money to family members
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Transferring a property to children or other relatives
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Selling property for significantly less than market value
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Moving savings into another person’s account
What Is Not Deprivation - The following are usually acceptable:
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Normal spending such as holidays, home improvements, or modest gifts.
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Modest gifts made as part of normal family arrangements.
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Estate‑planning decisions taken well before care needs were foreseeable.
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Paying off debts or legitimate expenses
Protecting the Family Home
The earlier panning is considered, the more options may be available.
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Where property is jointly owned and one owner later requires care, there may be opportunities to protect part of the property’s value. Additional planning options may also be available where a property is solely owned or where neither owner currently requires care.
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The way property is owned, together with the type of Will and estate planning arrangement in place, can make a significant difference when protecting family wealth for future generations.
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Professional advice should always be sought before acting, as every family’s circumstances are different.
Protecting the Family Home
At Sanctuary Tax & Trust Services, we help families understand their options and put appropriate state planning measures in place to protect assets wherever possible, while remaining fully compliant with care funding and Local Authority rules.