Don't wait for legislation to fix old age care

Government proposals aimed at reforming funding for old age care are unlikely to take the burden off the individual, but a bit of forward planning now can help preserve your assets before it’s too late.

The Government’s Shaping the Future of Care Together Green Paper has been published to address the perceived unfairness of the current social care system, with various proposals put forward for discussion. These include a compulsory insurance paid throughout a career, a one-off payment of up to £20,000 during retirement or after death, or a partnership payment, where the individual pays part of the care and the state the rest. It rules out funding through general taxation as placing too high a burden on younger workers.

Says Barr Ellison’s Judith Greensitt, a member of Solicitors for the Elderly: “This is the nearest we’ve got to any type of reform of the system, but with many different options up for discussion and a white paper not expected before next year we’re still a long way off any change. Whatever the outcome, in many cases the individual is likely to be paying towards care, be this through an insurance or a lump sum.”

Currently anyone with more than £23,000 in assets must pay their own way if they move to a care home, with average care home fees currently £627 per week.

Contrary to popular belief, people are not necessarily forced to sell their homes to pay for care, says Judith, and the house is disregarded if a partner or a child over 60 is still living there. Some forward planning will make this an even less likely occurrence: “We can help make provisions under current legislation through a will or LPA (Lasting Power of Attorney). A will can make provision for your assets, while a LPA can allow named family or others to provide needed support if the issue of care arises in the future when, perhaps, you are not up to dealing with it yourself,” she explains. “We’d recommend people don’t wait for changes in legislation but think about some forward planning now.”

For further information contact Judith Greensitt

The information given in this article is of a general nature only and should not be considered as advice applicable to any particular situation for which specific request should be made to us.

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