Care funding And Care Home Fees – Frequently Asked Questions

Care funding and care home fees – answers to frequently asked questions.

When will the Local Authority pay for my care?

• Having less than £23,250 in cash and assets will make you eligible for Local Authority funding.
• Care needs are assessed, followed by a financial assessment to calculate the eligibility and level of funding.

What assets can be taken to pay for care?

• If you require social care, whether this is at home or in a care home, you may be required to pay some or all of the costs if your savings or assessable capital are above a certain level (currently £23,250 in England).

Will my partner have to leave our home to pay for my care fees?

• If your partner is over the age of 60, or a relative with a disability is living there and will continue to reside there once you enter full time care, your home will be subject to a mandatory disregard, and therefore disregarded from your assets when completing a financial assessment, and there will be no need to vacate or sell the property.
• You may be able to apply for discretionary disregards if the mandatory ones do not apply.

What happens to my property if it’s empty?

• An empty property will be disregarded for the first 12 weeks of being in care to allow you to consider your options unless you have more than £23,250 in other capital assets.
• Our team can advise on which assets and capital do not need to be counted in a care fee assessment and assist with relevant disregards.

Will my partner have to leave my home if it is in my sole name?

• If the property is not jointly owned, the mandatory disregard can still apply.

What is a deferred payment agreement?

• A deferred payment agreement is a scheme put in place by the local authority to ensure your care fees are paid when you are unable or do not want to sell your property. They will put a charge on your property and ask you or your attorney/deputy to sign an agreement. This will need to be paid back from the property on sale. Interest will be applied.
• A deferred payment agreement can be applied if you are in the process of selling a property, or if the property is rented out.
• You should seek advice before entering a deferred payment arrangement if you are not sure if this is the right thing to do.

How can a deferred payment arrangement be entered into if the person receiving care has lost capacity?

• If the person receiving care has lost capacity and cannot agree to the deferred payment arrangement then someone who has authority to act on their behalf can do so, such as your Attorney or Deputy.

Can I give my property away so I don’t have to sell it for care home fees?

• There is a high risk that if you do this it will count as a deliberate deprivation of assets and that you will have to pay the same level of care fees as if you still owned your home.

What is a deprivation of assets?

• This is when a loved one’s assets are given away/transferred/reduced/used or are no longer available to pay for care home fees. The local authority may consider that a person has deliberately deprived themselves of assets to avoid paying for their care fees.

What counts as a deprivation of assets?

• The local authority may consider that a deprivation of assets has occurred if:
  • You knew the assets were going to be needed or may be needed to pay for care.
  • You gave away assets to avoid paying for care.
  • You knew you would need care or support when the assets were given away.

What happens if I gave away my money or home a really long time ago?

• Timing is an important aspect of this based on your healthcare needs and the timing of the actions, the test is subjective.
• The local authority has no time limit to look back on gifts, transfers, or sentiments.
• Their decision can always be challenged.

Can I be paid to look after a family member who has lost capacity?

• There are lots of factors that will need to be taken into consideration but if you are the Attorney or Deputy then you will not be able to pay yourself for caring for them and an application to the Court of Protection will need to be made for authority to do this
• If a professional is acting as Attorney or Deputy, in most circumstances, they do not need authority to authorise payments to a family member for care and can make a best interest decision.

What is a third party top up?

• If someone is funded by the Local Authority, it is likely that the Local Authority is paying the care home less that their standard rates. The care home may ask family members or close friends to make the care fees up to their standard rate by paying the care home the difference between what the Local Authority are paying and what the care home would usually charge.

Who pays for a third party top up?

• A partner, family member, or a friend may be asked to ‘top up’ a persons care fees from their own monies. There is no obligation for you to do so, but if you agree you will be asked to enter into a third party op up agreement which is a contractual arrangement.
• It is important to seek the relevant financial advice before entering into this agreement as factors can change over time e.g. increase in care needs and fees.

What if I refuse to make a third party top up?

• There is a chance that the care home will not accept the Local Authority rates alone and therefore your loved one may have to move to alternative care that will accept the Local Authority rates.

For answers to your questions, call us – our team are here to help.