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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 26000
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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With the new legislation regarding payment

Resolved Question:

With the new legislation regarding payment for residential care in 2016 with care costs being capped at £72000. Is it possible to ensure sufficient money to cover this plus additional costs but take the other assesses out of the estate ?
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.
Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

May I ask is this a situation regarding someone that is already in care or is this a situation of planning for potential future care possibility for someone that is not presently in care please?
Customer: replied 2 years ago.
It's in relation to my mother. She is currently in care. This followed an accident last year when she suffered a head injury. She had previously been well and independent. She is not going to be able to return home and she has asked to sell her house and pass on capital to the children.
Expert:  Joshua replied 2 years ago.
Thank you. Does your mother still have full mental capacity?
Customer: replied 2 years ago.
Yes.
Expert:  Joshua replied 2 years ago.
Thank you very much for the above. Unfortunately the incoming £72,000 "cap" is rather disingenuous. It is not really a cap at all in the normal sense of the word and it is riddled with caveats. It is better than the current situation but it is far from a true cap.The new "cap" only covers care fees which are only one component of the costs one pays in a care home. It does not cover accomodation costs (so called "hotel costs") which are a significant component of the fees one pays and these continue to be payable after the cap is reached.In addition for the care fee component only the money paid up to the local authority rate counts towards the cap total. If your mother is in a care home for example that costs £700 per week but the local authority rate for the area is £500 then only £500 of the total £700 paid will count towards the cap.So the cap is not really a cap at all and money will continue to be payable for accomodation costs which are a major component of the care home fees even after the cap is reached.Accordingly disposing of assets above the cap can still be called "deprivation" by the local authority if there is an attempt to give away assets whereby local authority funds may later be needed as a result to suppot your mother. Under these circumstances the council can make an application to reverse the gifts and claim back the money that has been gifted.This all makes for rather depressing reading. However there are solutions that are available as there always have been for care fees and as aresult of the incoming "cap" these solutions are predicted to be reducing in cost. There are a range of insurance products that can provide for care which can be better than simply selling the house and watching funds dwindle away. Rather for example your mother can pay a one time premium for guaranteed care for the rest of her life. The premium is of course not cheap but the benefit is that she will then know how much she would be left with following payment of that amount and that no further claims would be made for care costs in the future because these are all paid from the insurance product she buys. She can also therefore calculate what she will be left with to leave as an inheritance either during or after her life as she wishes. So this can be an attractive option for many families. To discuss such alternative funding approaches you can contact a specialist financial advisor who will be able to advise you on what products are available, usually without any intial charge or obligation. I would recommend an advisor who operates under the Symponia umbrella.http://www.symponia.co.uk/I hope the above is of assistance? If you have no further questions for now I should be very grateful if you would kindly take a moment to click to rate my service to you today or just reply back to let me know if the above is helpful. Your feedback is important to me. If there is anything else I can help with please reply back to me I'd be very grateful
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