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Financing Your Care Home...

When considering a care homes for the first time you will need to understand the issues regarding the funding of long term care.

The question of funding often causes concern whether you are planning care for yourself or a relative as you strive to find the very best care whilst protecting financial assets.

As a result it is best to understand the facts regarding funding and make a decision based on your own individual circumstances.

In England you will generally have to pay for care homes costs if you have capital assets in excess of £23,000. These assets include the value of your property as well as any share portfolios and savings. In this case your local government will not make a contribution to the cost of the residential care home.

The value of a home may not be included in asset calculations in certain circumstances such as;

• Spouse still residence in home

• Child under 16 or Disabled person in residence at the home

In all circumstances you will need to check the current regulations with you local authority as soon as possible.

In general local authorities will disregard the value of your home for the first 12 weeks of permanent care home residence, allowing some breathing space, as long as all other assets fall below £23,000.

If your home is calculated as part of your assets after 12 weeks many local authorities may offer a deferred payments scheme allowing you to receive their fixed contribution, as a loan, to be repaid when the property is sold property.

If your total assets fall below £23,000 most local authorities have a fixed amount that they will contribute to ones care. Many people however find it difficult to find a care home that meets their expectations for this level of cost. To qualify for this payment there is normally some form of assessment to ensure that permanent residential care is required. Any additional income, such as interest from savings, will generally reduce the local authority contribution. If the cost of your preferred care home exceeds the local government contribution value you will be expected to meet any additional costs for this shortfall.

Thus many of us will need to look at using our current assets and income to fund our long term care.

If you are in a position where you will need to contribute to your there are now numerous ways to structure your finances to ensure that long term costs are met. Many people now choose specialist capital investment schemes or care home annuities to provide long term care home funding. Such schemes may also protect some of your capital allowing it to be passed on to your future beneficiaries.

To help you consider these options Care Home Finder Work with carefully selected partner companies that can help provide you with current information on funding options to meet you individual circumstances.