Those with close family members
faced with the prospect of requiring domiciliary or residential care, by now,
should be well aware of the changes that will affect social care policy. The
proposed manifesto will see our vulnerable having to pay for their own care
fees if the combined total of their savings and property exceeds £100,000. Granted
this raises care fee assessments from £23,250 but, with all things considered
is this truly a saving when most assets are tied up in properties anyway? With
the housing market as it is today, most people who own their own property will
be tasked with paying for their own care fees should the need for care arise.
Of course payment can be deferred until death, in which case the deceased’s estate
would incur the burden of payment, meaning that leaving a healthy inheritance
for the family may soon become a thing of the past.
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| Article by Kagowa Kuruneri |
Where domiciliary care was not an
issue, its successor ensures that certain degenerative and debilitating diseases
will attract care fee obligations and others will not, regardless of where care is provided. Does the discrimination between
illnesses, geography and means serve any real benefit when the aim is to make
care policies fairer?
The worry now is that in order to
protect one’s assets or estate, those in need will shy away from much needed
assistance until their circumstances are so dire that they require nursing care
under the NHS. The other solution would appear to be transferring ownership of
assets before care applications are submitted. However, setting aside the fact
that it is unclear how such transfers will be treated under the new policy,
there are Inheritance Tax provisions that could adversely affect your estate if
certain conditions are not satisfied.
At best it is not yet clear
whether there will be a way to receive care assistance without losing your
property, diminishing the value of your estate, or putting your own health at
more risk. However, if you would like to explore the options that are available
which would reduce the blow delivered by the “Dementia tax” reach out to Garden
House Solicitors today via email or LinkedIn.
www.gardenhousesolicitors.co.uk
Tel: 01992 422 128
Email: info@gardenhousesolicitors.co.uk
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.
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