As you get older or your needs increase, you may find it more difficult to cope in your own home. Living in a care home can be very expensive and the costs involved in moving in to a care home can literally wipe out your entire savings and your home may have to be sold to pay for your care fees.
When someone enters care they are automatically means tested and ALL their assets, including the family home are taken into account. If you own more than the upper limit ( which includes your property, any cash, savings, investments and is currently £23,250) you will be expected to fund the full cost of your care fees. You will not be able to receive any financial help from your local council until your savings and assets have been reduced to this upper limit.
Every local council social services department must follow the Government Rules from the ‘charging for residential guide’ (CRAG) to work out how much you will need to pay towards your care home fees. The council will ask you to complete and sign a financial assessment form. If you refuse to complete the form the council may charge you the full cost of the care home fees but they can not refuse to provide the care. The council will have to know how much savings and assets you have as well as property as well as your weekly income. If any assets are held in a Discretionary Trust these may be excluded providing these follow the CRAG rules and were placed into the Trust when they were putting into place essential estate and bloodline planning and were not placed into the Trust to deliberately deprive the council of assets.