Home Is Where The Heart Is
You may have lived in your home for many years or even decades. It may be the family home and too hard to leave but if it has become unmanageable or you are only using a small part of it, is it time for a move? What are the options?
Your options may include one, some or all these things: Staying put, Moving. Renting. Selling. Downsizing. Sharing your home or moving in with family
There may be support that enables you to stay in your own home but if a move has been decided then consider other options for example – moving in with family, a home share scheme or shared lives agreement, down-sizing, or a more appropriate type of property. If you are moving into a Care Home please see our Moving into a Care Home Checklist. Insert link to document
Renting may be your preferred option but often there are questions about how the rental income will be taken into account for a means test or how a shortfall between your income and cost of care could be met or what are the tax implications. If you would like to speak with a Care Funding Adviser please contact us.
Selling Your Home
Often when people move into a care home they believe that they will have to sell their home or be ‘forced’ to sell. Selling your home may seem very final and it is your choice. Take your time and seek advice before making any hasty, ill- informed decisions as there may be other options
Before you borrow against the equity in your home, remember that while it is your main and only home or the home of those closest to you, your property will often not be taken into account during a means test and if the NHS is responsible for your care costs it will not be considered an asset either.
If you are responsible for your own care costs or have chosen more care, a preference of accommodation or luxury services with a ‘top up’ requirement then you may be considering using the equity in your home to pay for it. While you are living at home and over a certain age there may be two main types of product available to you.
Home Reversion – you sell part or all of your home in return for a lump sum or regular payments.
Lifetime Mortgage – a mortgage is secured on your property but you retain ownership.
If you are moving into permanent care there may be other financial products available.
Deferred Payment Agreements
A Deferred Payment Agreement(DPA’s) with a Local Authority enables you to defer or delay paying some or all of the cost of their care (in a care home) until a later date. It is a way to prevent people from having to sell their home in their lifetime to meet the cost of their care.
Care Fee Annuity
An immediate needs annuity, care fee annuity or care fee plan is an insurance product designed to cover the shortfall between your income and the cost of your care for the rest of your life. Paid to a care provider it can have tax benefits and can be arranged to begin with immediate effect or be deferred for an agreed period.
Before making potentially life changing decisions with what may be your main or only asset a Care Funding and Benefit Check can ensure that the types of care and ways to pay have been fully considered. If you are using your own funds to pay for care, specialist care advice will make sure you aren’t paying more than you can afford or should be for the support you receive, identify state contributions to delay wealth depletion and avoid a move later on. Please call us 0800 999 2 27 or get in touch.
DPA stands for Deferred Payment Agreement. This is an agreement made between a Local Authority and someone who has moved or is moving into a care home and has less than (or close to) the upper funding level of £23’250 and wants to defer the cost of care against their property. A Care Funding and Benefit check will help you to understand the property options and ways to pay for care. If you would like some help to understand paying for care and what help is available please get in touch
Yes if it belongs to you and you are not gifting it to avoid paying for care or receive a benefit. It is advisable to get some help to understand the implication to gifting your assets and if you would like advice on ‘Deprivation of Assets’ please get in touch
Equity release can be a good idea and may help you make home improvements, pay for the costs of care at home or help a loved one but it isn’t suitable for everyone and may affect means tested benefit and Social Care entitlement. If you would like advice on care funding then please get in touch
There are advisers and organisers who are able to help you move and help you plan a move and consider all of the options before making a life changing decision. Please get in touch if you need some help.
Moving into a care home won't necessarily prevent you from falling but it may make sure there is someone around to limit any injury or time left unattended. If you are looking for care for someone who is at risk of falling please get in touch to consider the options and care needs.