How to avoid care-home fees
Average care-home fees likely to rise to more than £1,000 a week over the next two decades. So how can you avoid them?
Many retirees worry that they will have to sell their house and use all their life savings to pay for care-home fees and with good reason, says The Wealth Protection Report. According to a 2008 survey by Saga, average care-home fees are £540 a week and are likely to rise to more than £1,000 a week over the next two decades. Under current rules, you'll be expected to pay the full cost if you have capital of more than £22,250, and the value of your home can be taken into account after the first 12 weeks.
There are some exemptions. For instance, your home escapes if it is occupied by your partner, a relative who is aged over 60 or incapacitated, a child under the age of 16 for whom you are responsible, or an estranged partner who is a lone parent. If you own a property jointly with someone other than your spouse, its value may also be ignored.
But the best way to protect your property and other assets is to give them directly to relatives or transfer them into a discretionary trust. However, you may have to prove this wasn't done solely to avoid care-home fees, so always seek professional advice.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Higher rates are disappearing – should you fix your savings?
Fixed savings rates have dropped to their lowest levels in over a year. Should you fix your savings now ahead of a potential base rate cut in November?
By Katie Williams Published
-
Nine million people fall victim to financial scams, says Citizens Advice
The charity says that around one in five people across the UK have been caught out by a finance scam in the past year - here is how to protect your money
By Chris Newlands Published