Care Home funding is basically taxation

The rules here are complex and confusing and have been in need of reform for almost 2 decades. A proper tax planning strategy needs to fully consider future expenditure needs, including possible care fees.

Whilst mitigating care fees is undoubtedly important, equally so is the quality of the care received and at Culver Law, we don’t lose sight of that and will never advise you to dispose of all assets leaving you to be state-funded should you need care. To do so would ensure you receive a far lesser standard of care than you may receive otherwise.

What we can do is work with you to provide a cost-effective strategy to fund your care.

If you, or a relative, are already receiving care and you are concerned about funds rapidly decreasing please get in touch to discuss your options.

Basic rules

In England, if you have assets worth more than £23,250 you pay for your care in full until such time as your funds are below that level. Your assets here include your property unless it can be disregarded due to a dependent relative living there (in certain circumstances).

Once your assets fall below the above limit, your income (save for a minuscule personal allowance) all goes towards your care fees and for every £250 you have over the lower limit of £14,250, you are considered to receive an additional £1 of income per month to pay towards your care costs. Once your assets fall below £14,250 your capital assets are not further depleted but your income continues to be used to pay for your care fees.

These limits have not been varied in well over a decade even with inflation.

For this reason, care funding seems to be an element of taxation. The earlier you can take advice and discuss your concerns and get a plan in place the more we can help. Don’t delay, contact us today to discuss further.

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Culver Law, London
44 Southampton Buildings
0203 633 6226
Company No. 13313009

Culver Law, Cambridge
9 Hills Road
01223 653010

Authorised and Regulated by the Solicitors Regulation Authority. SRA Number: 820401.

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