Planning for care fee homes
Estate planning and regular review is essential to ensure you are prepared. As people are living longer so the average amount of time a person requires in care is also on the up. It is now estimated that the average cost of a place in a care home is £41,000 per annum.
Under current rules, if you have in excess of £23,250 in capital, you will be classed as a “self funder” and will have to pay for your own care fees. If your capital is less than £23,250 but more than £14,350 you will be means tested for contributions towards care fees. Furthermore, the next government is likely to reform social care funding and the Conservative manifesto indicates that the elderly must pay for their own care if they have combined savings and property worth more than £100,000.
You may ask why this is relevant to your Inheritance Tax Planning ? It is clear that if you have to sell capital assets such as the family home to fund these costs, the next generation is going to lose out. Furthermore, £41,000 per year will very quickly erode any cash held in bank accounts.
Although this is a topic we do not often like to contemplate, failure to act now can leave your family with an unexpected tax bill, or worse, little or no assets from your legacy. The best way to avoid this from happening is to carry out planning early and regularly.
We can also provide probate services – read more here.
If you would like to discuss any issues raised in this blog please do get in touch with us.
We will review your current estate planning arrangements and advise you on how to ensure your family are in the best position possible.
Contact us now to find our more information.
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