Deciding to move a loved one into a care home can be challenging, but understanding the financial aspects is crucial to making the right choice. Whether considering private funding or local authority assistance, there are various ways to cover care home fees. This guide will walk you through the different options available for financing care, important steps such as obtaining Power of Attorney, and provide resources to help you navigate this journey.
Private Funding vs Local Authority Funding
Private Funding
If your loved one has savings or assets above the threshold (£23,250 in England), they may be required to self-fund their care. Private funding allows for more flexibility when choosing a care home but can be a significant financial commitment. Some families opt for equity release or annuities to cover the costs.
- Equity Release: You can release money from your loved one’s property to cover care home fees. The funds are typically repaid after selling the home or when the resident passes away.
- Immediate Needs Annuities: These are insurance policies that provide a guaranteed income to pay for care costs in exchange for a lump sum.
Local Authority Funding
If savings and assets fall below the threshold, the local authority may contribute to the care fees. However, the amount covered depends on the financial assessment. The local authority will consider both your income and assets, such as property (with some exclusions)
- Deferred Payment Agreement: This allows families to delay selling the property while the local authority covers the care costs in the meantime
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- 12-Week Property Disregard: For the first 12 weeks after moving into a care home, the value of your loved one’s home may be excluded from the financial assessment
Power of Attorney and Financial Decision-Making
Managing finances for a loved one moving into care requires clear legal authority, which is where obtaining Power of Attorney comes in. This legal document enables a trusted individual to make decisions on behalf of the person moving into care, covering both financial and healthcare choices. Without Power of Attorney, families may face legal delays in accessing funds or making care decisions, so it’s important to have this in place early.
Signs It Might Be Time to Consider Care
If your loved one is showing the following signs, it might be time to explore care options:
- Frequent Falls: Increased trips or stumbles that affect their safety.
- Memory Loss: Forgetting daily tasks, medication, or becoming disoriented.
- Declining Health: Ongoing medical conditions or neglected personal hygiene.
- Social Withdrawal: Decreased interest in socialising or participating in hobbies.
- Neglected Home Maintenance: Bills piling up or the home being unsafe
How to Frame the Conversation
Starting a conversation about care can be difficult. Here are some tips to help you approach it thoughtfully:
- Choose a Comfortable Setting: Have the conversation in a relaxed, familiar space where your loved one feels safe.
- Lead with Care: Show empathy by expressing concern for their well-being, and be specific about what you’ve observed.
- Offer Support: Explain how care can offer them more freedom and reduce the daily pressures they face. Discuss options for both home care and residential care.
- Take Your Time: Don’t expect everything to be settled in one conversation. Allow your loved one time to process the idea and revisit the discussion as needed.
Resources for Financing Care in Macclesfield
For local residents in Macclesfield, several resources can help families plan and manage the costs of care:
- Age UK Cheshire East: Offers free advice on care and funding options. Contact them at 0800 678 1602 or visit their website for more information.
- Cheshire East Council – Adult Social Care Services: Provides guidance on local authority funding and financial assessments. Call 0300 123 5010 for help.
- MoneyHelper: Offers clear guidance on ways to pay for care, including deferred payments and equity release
- Lottie.org: Provides expert advice on finding care homes and managing the costs
Contact Riseley House for More Information
If you’re ready to explore care options or simply need more advice, feel free to get in touch with our team at Riseley House. We’re here to support you every step of the way and answer any questions you might have about financing care.