The Institute and Faculty of Actuaries has recently published a report (May 2014) hightlighting that 1 in 3 women and 1 in 4 men aged 65 today will need long term care in retirement.
Most of us work very hard over the years to buy our own homes and build up our savings for our retirement. Therefore it is not surprising that we would like to leave a “little something” for our children and grandchildren after we are gone.
Unfortunately if your health deteriorates and you need to use the services of a residential care home these plans will be seriously affected and your loved ones will receive far less than you originally intended.
When someone enters care they are automatically “means tested” and ALL of their assets, including their home and savings are taken into account. Only those who have very few assets will escape the costs of paying for their care.
The Care Bill that is currently nearing Royal Ascent (May 2014) is intended to cap these costs at £72,000 but that does not include all of the costs of your care.
Firstly, it is important to safeguard your home. Changing the way you own your home, combined with the appropriate Trust planning, will effectively ensure that your property is protected should either of you enter care. Also, by simply changing the way any other assets are invested and held, can ensure that your cash or liquid assets are also protected from Care.