How to Estimate Your Care Home Fee Costs

Posted by on May 19, 2014 in Pre-Paid Funeral | Comments Off on How to Estimate Your Care Home Fee Costs

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Nursing Home.

Nursing Home. (Photo credit: thinboyfatter)

You may already have heard about the arguments for holding on to substantial savings later on in your life. If you have some money, you’ll be liable to pay towards care home fees. If you have no savings, the fees will all be paid for you, but what is the reality, today?

You will want a great sense of security when you are older and in need of a good quality care home. You have to consider both the cost of the accommodation and the actual care, as local authority funding often covers just the nursing and care needs, rather than your accommodation, haircuts and daily newspaper.

As it currently stands, if you have assets of less than £23,500, you will qualify for state help with your care home fees.  From April 2016, the rules will change considerably.

Under the next set of rules, you may be able to defer your costs. The local authority (and some do this already) may allow you to take out a loan to cover your fees, with the capital and interest repaid on your death, from your estate, whether that’s your home and savings or any makeup of your funds and ownership.

The threshold will increase to £118,000 which means that you can hold those funds before paying for care. Second, you will only have to pay lifetime fees of £72,000 towards basic care home costs, but still be liable for your accommodation, haircuts and newspapers.

These changes mean that there will no longer become a complete drain on your funds if you hold assets over these levels. There is a limit to how much you are expected to contribute, although those figures are completely unknown and can only be a best guesstimate.

Insurance companies will find it easier to understand the level of cover and premiums required to cover your potential care home fees.

By planning ahead and having your will written correctly, you can mitigate your potential care home fees, considerably. You should seek advice as soon as possible. Contact us and we’ll direct you to the right people to help you. These individuals will be from outside our organisation, but are trusted by us in presenting the best possible alternatives to our clients.

We, of course, will help you set up your pre-paid funeral as part of your overall planning.

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