CareIt is important to note that Alex's answers are for general information only and do not constitute investment, tax, legal, medical or any other form of advice or recommendation.
You should not rely on this information to make (or refrain from making) any decisions regarding care or care funding.
Always obtain professional advice, such as that offered by Saga's Care Funding Advice Service, for your own particular situation.
Host: Hello and welcome to our webchat about how to fund long-term care. Saga expert Alex Edmans is here live ready to take your questions.
Alex Edmans: Hello. I hope am able to answer all of your questions today. However, if I don't get a chance to answer your questions, please contact us at Saga.
Question: Does everyone have to pay care fees? Is it means tested? I live on my pension but I do own my house.
Alex Edmans: Anybody who has assets over £22,250 may have to pay for their own care and that can include property. However, property will be excluded while the spouse still lives in the property or if your relative over 60 lives there.
Question: I am 62 years old and would like to stay in my home for the rest of my life. The mortgage is paid off. What sort of help will I have to pay for in the future. I have arthritis. Thank you.
Alex Edmans: As mentioned above, if you need care in a care home then assets over £22,250 mean that you may have to cover the costs yourself. However, you would be entitled to attendance allowance towards your personal care costs and a nursing care contribution if nursing care is required. These two benefits can total over £8,800 a year.
Question: Do Saga run care homes? Are there any league tables to recommend any that are of 'gold standard'?
Alex Edmans: Saga do not have their own care homes. There aren't any league tables published as such but you can go to the Commission for Social Care Inspection website www.csci.org.uk. They have a star rating for care homes and you can also download inspection reports.
Question: My elderly and very frail aunt has had a bad fall and broken her hip. I don't think it's practical for her to return home after she leaves hospital and I am looking at care homes. Her finances are tight until we sell her house (she only has £2,000 in savings) which is likely to take along time in the current market. She gets attendance allowance of £44.85 a week at the moment - I am told she will lose this now she's in hospital? Is that correct?
Alex Edmans: Her attendance allowance should stop after four weeks in hospital. In her circumstances she should then receive 12 weeks' funding from social services, as they should disregard her property in this period and her attendance allowance will not be paid again during this period. However it should be reinstated at the end of the 12 weeks. If your aunt now needs 24-hour care, then you may want to consider applying for the higher rate of attendance allowance.
Question: Mum is in a nursing home. Sadly she has Parkinson's and this seems to be progressing rapidly. The home receive nursing contribution which reduces her fees but the costs of the nursing home are still enormous. When we applied for free nursing care, however, we were turned down - even though her case is severe and hopeless. How do they judge who is going to get the nursing care? And can I appeal?
Alex Edmans: Yes you can appeal against the decision. The decision is made based on the decision support tool which assesses somebody's care needs against a number of set criteria, you should ask to see a copy of the assessment and compare it to the decision support tool to see whether or not you feel she would be eligible for it. The decision support toll can be downloaded from the Department of Health website www.dh.gov.uk
Question: Mum always refused to consider setting up enduring power of attorney and now she has been diagnosed with dementia. Can I still look after her affairs?
Alex Edmans: Unfortunately, if your mother no longer has her mental capacity then you are unable to continue managing her affairs. You will need to contact the Public Guardian Office and they will appoint a deputy to manage her affairs.
Question: My parents, who were both in their 90s at the time, signed over their house to me and my sister two years ago. Dad died shortly afterwards and mum now has been assessed by social services as needing residential care and this seems the safest option. However the council are also saying that their old home must be included in their finances even though my sister and I now own it? Is there any way we can fight this?
Alex Edmans: In your circumstances the local authority can include the property in the financial assessment if they feel that the gifting of the property to you and your sister was in order to remove the property from the financial assessment for long-term care. The honours will be on you to prove that there is another reason for the property being put in your and your sister’s name. If necessary, you may need to speak to a solicitor to fight this further.
Question: When Dad goes into care, I want to bring him a home near me. He lives in North Yorkshire and I am in Hampshire. Am I able to do this and will he still get local authority support?
Alex Edmans: Yes you can move your father from Yorkshire to Hampshire to receive his care. Unfortunately the local authority in Yorkshire will be responsible for funding his care and they will only have to pay the Yorkshire rate and thus it may not cover the fees in Hampshire.
Question: How much is LTC likely to cost me/my family? My husband and I own our own home with no outstanding mortgage, but would want to live somewhere together. We live near Derby.
Alex Edmans: The average cost of a shared room in Derby in a residential home will be around £400 each per week.
Question: If I or my wife go into long term care, how is it funded? We have both 'paid our way' so why should we have to pay more? Have the powers that be the right to appropriate all our assets?
Alex Edmans: As previously mentioned John, anyone with assets over £22,250 may have to pay for their own care home fees. The 'powers that be' cannot appropriate your assets but they can expect you to use them to pay for your care home fees.
Question: My grandmother went into a care home and though they were very caring, it was not really right for her and I think this contributed to her decline. Soon my grandfather will need to also go into a care home. Can I 'appeal' even though we have not yet had a decision made?
Alex Edmans: Before your grandfather moves into a care home then the social services should carry out a 'Section 47' assessment. This should assess his care needs and the most appropriate setting for him to receive his care. At the moment the social services will aim to keep somebody in their own home for as long as possible. If you disagree with the assessment, you can ask for him to reassessed or appeal against it.
Question: I am thnking ahead. I am in perfect health but now living alone in a large family home which I would like to live in until I die. I may need some care in the future either by my daughter in law or else in conjunction with outside private or NHS provision. Can you offer any advice given that I would like to remain in the family home and keep the house as an asset for my children when I die?
Alex Edmans: It is possible to receive care in your own home but again social services will carry out a financial assessment. However, while you are living in your property they cannot include it. They will therefore look to see what other savings and investments you may have. If you are over £22,250 you may have to pay for your own care. Unfortunately, there is nothing you can do to try and remove the property from the financial assessment if you need care in the future.
Question: My father is 85 and has just lost his wife of 62 years. I am concerned that he will need care in the near future, but he won't discuss it. What can I be doing now to prepare for the prospect of paying for care. Thank you.
Alex Edmans: It is a very difficult question as nobody likes to talk about needing care in the future, if you dont think that your father would talk to you about it then he is welcome to contact us at Saga to discuss it in confidence. Also, you may wish to talk to him to about arranging a lasting power of attorney.
Question: My mother is quite elderly and I am coming to the realisation that she will soon need to be in a home. What should I be thinking about?
Alex Edmans: Firstly, you should consider arranging a lasting power of attorney. This will enable you to manage your mother's affairs on her behalf. Also, you should try to talk to your mother about it. And if you can, perhaps visit some homes together to see if there is one she would like. You may want to consider applying for an attendance allowance if your mother is beginning to require some help.
Question: Why is care free in Scotland but we have to pay? I live in Northamptonshire.
Alex Edmans: It is a common misconception that care is free in Scotland, though Scots do get slightly higher state support towards their care if they are self funding. In Northamptonshire, you could expect to find care costing £400 a week, whereas in Scotland the average is £430 a week. Though the state benefits will reduce this to £281 as there is personal care allowance in Scotland of £149 a week.
Question: My husband's mother is 84 and I expect will need care soon. We've discussed the cost and she says she has enough savings but I am concerned what will happen if these run out. Can a care home just kick someone out?
Alex Edmans: If your mother in law's savings run out then you will need to discuss with the care home whether she can stay there on local authority funding levels or not. If not, the care home may insist that the family make a third party top up or else you may have to contemplate finding another care home. Speak to one of our specialist advisers who may be able to help you arrange your mother in law's finances so that this never occurs.
Question: Is there an agreed star or ratings evaluation of care homes (as they do for hotels)? I will have to choose one for my parents and am finding it difficult to get on top of all the criteria I should be judging.
Alex Edmans: As mentioned earlier, the Commission for Social Care Inspection publish star ratings for care homes, and you can download care reports from their website. Their address is above.
Question: Hi, I am 62 and suffer from depression. My wife looks after her father, who is 88 years old, in his own home, though she lives with me. What happens if my mental state gets worse and I have to go into a mental home? Who pays and how much is it in state one or a private one. Thanks.
Alex Edmans: Who would pay depends on your savings as your property would be excluded if your wife lives there. On average in the UK care fees are £420 per week but it varies very much across the country.
Question: Will LTC payments continue to cover outstanding costs after death?
Alex Edmans: Malcolm - please could you clarify what kind of long term care payments you are refering to?
Question: What are other considerations other than the home itself when putting a parent into care? Are there any tax implications?
Alex Edmans: The main consideration if you are paying your own care fees is the affordability of the care home. There aren’t any tax implications, however it is possible to arrange your finances so that that income can be paid tax free directly to the care home.
Question: My parents are still quite young, however one day might have to go into a home, they are thinking about saving now rather than enjoying their money in their retirement is this a good idea?
Alex Edmans: This could certainly reduce their funds to the means test limit. However, this could reduce their choice of care home if it is required in the future and they have to rely on the local authority for funding.
Question: My mother has recently sold her house and has funds available. Her care home fees are £520 a week. How can I use the money from the property sale to meet the fees?
Alex Edmans: There are a number of options available to you to meet the fees. You could consider spending down the capital, investing it in the hope of receiving returns above bank and building society rates. Or you could consider using a care fee annuity. It is also important to ensure that your mother receives all the benefit she is entitled to. Our guide, which can be downloaded from our website, www.saga.co.uk, outlines all of these options in a lot more detail. It is important to note that there is no one right answer, and it will vary for each individual. If you want to speak to one of our specialist advisers please contact us on 0800 056 61 01 and they will be able to go through your options in more detail.
Questions: What is long-term care funding? Do I need to pay for this, or can I get it via the government/local council?
Alex Edmans: Long-term care funding is simply arranging your finances to best meet your care home needs. The government will assist people with assets beneath £22,250 but if you have assets over that you may need to fund it yourself. However, those with severe nursing needs may get their care paid for in full by the NHS.
Question: Thanks for answering my question, Alex. I mean the payments one would receive from the insurer/the government to help pay medical costs?
Alex Edmans: Thanks for coming back to me, Malcolm. Unfortunately, payments from an insurer would stop on death, so would any government funding. However, there are some bereavement benefits available that you may be able to claim.
Question: Hello Alex! I hope I haven't missed you. Will my children be covered under my long-term care insurance policy?
Alex Edmans: Hi Johnny - still here! Long-term care insurance policies tend to be arranged on single or husband and wife's policy only, so it won't be possible to cover your children under them also.
Host: Unfortunately that is all the time we have for today. Many thanks for your questions.
Alex Edmans: Thank you for your time today. I am sorry if I haven't been able to answer all of your questions but please feel free to get in touch with me at Saga if you have any further questions. Our helpline number is 0800 056 61 01.
It is important to note that Alex's answers are for general information only and do not constitute investment, tax, legal, medical or any other form of advice or recommendation.
You should not rely on this information to make (or refrain from making) any decisions regarding care or care funding.
Always obtain professional advice, such as that offered by Saga's Care Funding Advice Service, for your own particular situation.