Currently, if – subject to a health assessment – it is decided that you require care in England, social services will need to carry out a financial assessment to determine whether you have the means to cover the costs yourself.

This assessment will consider:

• Your income (including interest on savings, and pension and benefit payments)
• Any capital you may have (including savings, investments and owned property)

If you have capital of less than £14,250 you will pay nothing for your care from your own capital and savings, regardless of whether the care is in your own home or in a residential setting.

If you have capital between £14,250 and £23,250, you will be deemed eligible for financial support from your local authority, but you will still need to make some contribution. If your assets exceed this threshold, you will have to cover the full cost of your care.

Once your assets drop below £14,250, you will only be expected to make income-based contributions.

If you have been receiving care in your own home, only your savings will have been taken into account.

However, if you move to a care home, the value of your property may also be taken into consideration, depending on your own circumstances.

If you find you have to pay your own costs, there are a number of different options for covering the bills.

You may be able to enter into what is known as a ‘Deferred Payment Agreement’ if you own residential property but are moving away from this property permanently to go and live in a care home.

A Deferred Payment Agreement is essentially a loan from a local authority set against your home, which will enable you to pay for your care. Interest will be applied to the loan, but you will not need to sell your home immediately.

It is always sensible to seek an independent legal opinion based on your circumstances prior to entering into such an agreement.

The Government has acknowledged that the number of people having to pay for their own care is on the rise and figures suggest that one in ten of these people will pay in excess of £100,000 in fees.

In an attempt to address the situation, legislation has been drawn up to cap the cost of care for over 65s.

The introduction of capped fees has been delayed several times but in September 2021 the Government committed to a new framework. New plans are due to be published in spring 2022 and from October 2023, the Government has said it will introduce a new £86,000 cap on the amount anyone in England will need to spend on their personal care over their lifetime.

We will provide updates on the new capped fees system when further details become available.

Everyone is entitled to free nursing care irrespective of their capital and savings.

Under existing rules, you may be eligible to receive what is known as ‘NHS Continuing Care’ if you are being transferred to a nursing home from a hospital or are living with a serious health condition. If so, the health service will pay for all your needs including the aspects of social care and the hotel costs of residential care, irrespective of your financial circumstances.

Even if you are not initially eligible for funding when an assessment is first carried out, it is worth noting that a fresh assessment may be requested if your health deteriorates over time.

Some families may be tempted to give away assets in order to qualify for help with funding, but this can be a risky tactic.

If the local authority finds that you have deliberately deprived yourself of assets in order to avoid care costs, for example giving away savings or signing over your house to a relative, then these assets will be considered ‘notional capital’.

This means that the authorities will still be able to take them into account when deciding on the level of assets available. The local authority may also seek to reclaim those assets which have been transferred.

Conditions such as dementia are growing increasingly common across the UK – and can all too easily lead to a loss of decision-making capability and mental capacity.

Fortunately, there are steps that can be followed early on in order to alleviate some of the problems which may arise in the event you are affected by such a condition in the future.

You may wish to communicate your wishes clearly through a Lasting Power of Attorney for Health and Welfare of Finances (LPA) or a Will.

Put simply, an LPA is a legally binding document which can grant your relatives, carers or close family members the authority to handle your property and financial affairs in the event that you may lose the ‘mental capacity’ to do so yourself.

Although no one likes to think about their own mortality or the possibility that, one day it may be difficult to make decisions for ourselves, planning ahead, with the help of a solicitor who specialises in older client legal matters, will provide both you and your family with the peace of mind that your affairs are dealt with, and your wishes are known.

Each of our two homes are suitable for people living with dementia, with dementia-qualified and experienced staff who are on duty 24 hours a day. This means that if a resident’s care needs change over time and require additional dementia support, there is no need to move to another home, avoiding the upheaval and stress that such changes often bring.