When you or a loved one needs residential care, you may be worried about having to sell your home to pay for the fees.
On this page we’ll explain the following:
How does the local authority work out the care home fees I should pay?
If the local authority is arranging your care home, they'll do a means test to decide how much you should pay towards it, and they may take into account the value of your home.
A means test is a financial assessment where the local authority calculates how much you may need to pay towards the cost of your care.
The means test will look at your capital and income, such as your savings, property, investments, pensions and any benefits you’re eligible for (even if you’re not claiming them).
Certain types of benefits, such as the mobility component of Disability Living Allowance or Personal Independence Payment, may not be counted.
If your capital and income is above £23,250 you’re likely to have to pay your care fees.
If your capital and income is under £23,250 you might get some help from the local authority, but you may still need to pay some fees.
How will they calculate the value of my home?
Your property will be included in the means test at its present market value, but less any mortgage or loan you may have on it and less 10% of its value where there would be expenses to sell it.
Does my home have to be included in the means test?
In some situations, your home won’t be taken into account in the means test. There are a few circumstances where this applies:
If you need temporary or short-term care only, your home won’t be included in the means test.
your partner or former partner, unless they are estranged from you
your estranged or divorced partner IF they are also a lone parent
a relative who is aged 60 or over
a child of yours aged under 18
a relative who is disabled.
Your home also won’t be counted if it’s still occupied by:
We jointly own our home – how will it be assessed?
In the means test the local authority must take into account joint owners who own different amounts of the property.
They shouldn’t assume that joint owners have equal shares, although you may have to provide evidence to prove this.
And remember, if your partner is going to stay living in the property it may not be counted at all in the means test.
I really don’t want to sell my home – is there anything I can do?
Giving your home away
Some people consider giving their property to someone else, such as a child or relative, so that it won’t be counted in the means test.
However, this may count as deliberate deprivation of assets, meaning you’d still have to pay the same level of care fees as if you still owned your home.
It’s important to find out more about how deprivation of assets would apply to you if this is something you are thinking about.
There is a system where people don’t have to sell their homes immediately to pay for their care. This is called the deferred payment system.
This is where you can delay paying the costs of your care until a later date.
This could last until you die, after which the costs will be paid from your estate, or could be a temporary arrangement to give you time to sell your home when you choose to do so.
Your local authority must offer you this option if you are eligible.
What should I do next?
The system of paying for care is complex and every case is unique. We suggest doing more reading before you take any action and contact your local Age UK for face-to-face help.
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