Lees Solicitors - Care fees and the means test - Gill Knowles

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Care fees and the means test - Gill Knowles


Care fees and the means test - Gill Knowles

New regulations have been issued in relation to benefits and support in residential care in England. The changes, which came into force on the 6th April 2009, relate to the way that local authorities assess a persons ability to pay for residential accommodation. The two principal changes are as follows:

  • An increase in the upper capital limit (usually a persons savings and property) to £23,000. This is the level at which a person is not eligible for any local authority support.
  • An increase in the lower capital limit to £14,000. This is the level below which a person is eligible for full support from the local authority for their accommodation (so the person is not required to make any contribution themselves).

The whole process of dealing with an elderly relative who needs residential or nursing care can be very difficult and stressful. If the person's assets are valued above the upper threshold of £23,000 they will have to pay their own care fees. Certain assets are excluded from the means test and a lot of confusion surrounds the subject of whether a person's home is included. The main rules are that a person's home is not included in the means test if:

  • A spouse still resides in the property;
  • A relative, if aged over 60 or disabled, resides in the property;
  • A child under 16 lives in the property;
  • The care is being provided on a temporary basis only;
  • The person in the first twelve weeks of needing care (the local authority must disregard the value of the property for the first twelve weeks of care in a care home).

Many people want to know 'can I give away my assets, such as my house, to avoid paying care fees?' This is a common area of concern and professional advice must be sought before taking such action as one can easily fall foul of the Deliberate Deprivation rules.

At Lees Solicitors LLP we offer a package of advice relating to care fees and transferring assets. If you would like further information please do not hesitate to contact us, for initial enquiries please call Gill Knowles in our Wills, Trusts & Estates Department.

Gill Knowles

This article provides a summary of a recent case/change in law/news item. It is intended for general information purposes only and is not to be relied upon. It does not constitute legal advice and should not be treated under any circumstances as a substitute for legal advice. Lees Solicitors LLP does not accept any responsibility for any loss that may arise from reliance upon the information contained within this article. The copyright in this article is owned by Lees Solicitors LLP and permission must be sought before reproduction or publishing.


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