A common fear of people who require long-term care in later life is that it will cost them their home.
New research suggests one in five people over age 50 believe they will be forced to sell their home to pay for long-term care at some stage of their retirement.
People think that long-term care will cost them an average of £67,000.
In addition, 5% of those surveyed believe they will need to help fund long-term care for elderly parents; forming part of the squeezed ‘sandwich generation’ supporting parents and adult children during their own retirement.
I was speaking earlier this week to a journalist who is writing about long-term care and the possibly requirement to sell a home to fund this expense, and was able to explain some of the circumstances where homes are excluded from a local authority assessment of assets.
Losing your home when you need residential care is far from inevitable, although the rules often confuse people.
If your spouse or civil partner, a relative aged 60 or over, or a disabled relative, or a dependent child under the age of 16 lives in the property, it will be disregarded by the Local Authority.
If your home is a part of the local authority assessment, they will offer a twelve week disregard period in the event that your property needs to be sold to fund care fees.
This is designed to give your family the time to sell your home and, assuming your other assets are less than the upper capital limit during this twelve week period, the Local Authority will make a contribution towards your care fees.
Care fees planning is a tricky and expensive business, so always seek independent financial advice from an adviser with expertise and experience in this complex area.
You can download our guide to care fees planning here.
