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.
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