Steps To Take If You Want To Avoid Care Home Costs
Nowadays economic environment is not necessarily the most fortunate or the most generous one for most of the people out there. This makes saving money very difficult and it makes every extra-expense really make the difference in the way you live. Thus, if you are like most of the people out there, you will want to avoid paying your hard-earned money on services you did not expect to have to pay for, such as care home fees. However, if this is your main concern at the moment, you should first of all know the fact that avoiding care home costs is possible, if you choose to do the right thing at the right time.
For starters, you will have to understand how care home costs are calculated. Basically, any asset you may have will be taken into consideration for the final costs calculation. Your home, your car and all the other assets you may have will all be considered as part of your capital. In the United Kingdom, there are two main ways in which you can pay for the care home fees: with the help of the state (in certain situations) or by privately funding these fees.
You can only receive help from the state as long as your capital is evaluated at less than L23,250 and you can receive the maximum support only if your capital is evaluated at less than L14,250. However, this does not mean that you will not have to pay anything, as a sum of less than L23.90 will be needed for things included under “personal expenses”. Furthermore, if your capital is anything between L14,250 and L23,250, you will have to pay L1 for every L250 that is part of your capital. If your capital is above L23,250, you will have to self-fund your care home fees.
avoiding care home costs is, as mentioned before, possible, but what you will have to do is basically put all of your assets into a trust. This way, they will not be taken into consideration as part of your capital and you will be able to receive more benefits from the state, which will considerably lower the amount of money you will have to pay for your care home. However, if you do decide to do this, make sure that you trust your assets into reliable and honest hands, since this is extremely important for your future (and for the future of your potential inheritors, for that matter).