Are next of kin responsible for care home fees in the UK?
Senior care services Lawyer, Jane Woods explains.
How do care fees work?
Generally, people that need to go into a home are assessed for both their residential and nursing needs. The level of care needed dictates how much is charged in terms of care fees. For example, a person requiring comprehensive nursing care would be expected to pay more than a person who required minimal help with tasks such as dressing and bathing. These nursing home fees can also vary quite a bit. The resident’s assets are then taken into account when the fees are set – this means that those with less money or assets will have their care free. Always check with your local authority on these matters as situations can vary. The process involves a financial assessment to deteremine whether self-funding and personal assets can be used to pay for nursing home fees.
The next of kin’s role in care fees.
In most cases a local council pays for residential care fees, but family members and relatives step in where there is no one else to pay. This situation often arises where the person needing care doesn’t have any immediate relatives (or none willing to contribute) and they need 24-hour nursing attention.
Will the NHS Pay for Care?
Residential is paid by the local authorities like the NHS through NHS funding in circumstances where someone would otherwise be admitted to hospital so this is how councils pay for homes initially. However, they will also assess an individual’s needs in terms of nursing care and if they require this then the local authority has to meet the cost of it.
Local Authority
An application can be made by either party to determine what support should be paid for by the local authority but the local authority doesn’t have to consider bringing this claim unless you can show that you can’t afford it yourself or your assets won’t meet the cost through a means test.
You can apply to the local authority if you have any concerns about how much should be paid by them towards your care costs, but they won’t always agree with you so it is important that you seek advice first particularly if there are other people who have a say in the decision making process i.e. partner/son / daughter etc as their views may not be identical with yours and this could lead to arguments and disagreements which could delay the process further.
How do families pay for residential care?
If an application has been made to assess what care should be covered by the state then generally most councils will provide funding after 26 weeks of living somewhere with conditions attached such as signing a tenancy agreement and pledging how assets will be used during residency. However, if you are not entitled to any help from the state then it is highly likely that the next of kin will be expected to contribute towards care home fees.
If someone has assets totalling more than £23,250 they would usually be required to pay their own care home fees without exception even though this figure can vary depending on where you live in the country. This means that anyone with savings/investments would need these to fall below this figure before becoming eligible for support by the council otherwise they will have no choice but to fund their lifestyle themselves or sell-off property which may cause them significant financial issues at this stage in life; especially if they’d rather stay put and remain independent which could be possible up until death.
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Who is responsible for care home fees after death?
If the deceased person paid for their care home fees in advance, the care home should refund the appropriate amount. If you believe that your loved one may have been eligible for NHS Continuing Healthcare, you may be able to make a CHC funding claim to have some costs reimbursed.
In the event that a person dies before their care home fees have been discharged then any outstanding costs will be pursued by the executors of the estate and transferred to whoever inherits it. This means that unless a person’s assets exceed £23,250 they will likely not be able to receive anything from the sale of assets even if this is less than what they owe. A legal professional who specialises in dealing with estates will be able to advise you on how best to proceed after someone has died if their care fees remained outstanding at their death.
What are alternatives to residential care homes?
Individuals who need 24/7 nursing care may consider re-homing into a nursing home or care home which offers shelter under one roof but also provides access to a nursing team which can provide the essential care needed. However, these types of facilities are usually very expensive and a professional financial advisor should be consulted before moving into one especially if there is more than one person involved as this decision could have an impact on your life-time savings e.g. inheritance, investments etc.
From 1 April 2015, residential and nursing homes in the UK must charge residents no more than £72 per week for accommodation costs (£260pw for private rooms). If you believe you are being charged incorrectly or not receiving the services you pay for, take action through the Residential Accommodation Association (RAA). Visit their website at www.raa.org.uk for advice and guidance on what to do regarding these fees.
How do I protect my assets from nursing home expenses??
Before you consider residential care homes, it is important that you think about how these costs will affect your assets. If you own a house or property e.g. family home or second flat then putting the property into joint names with one of your children could help to protect it from being seized by creditors during your lifetime and may ensure that it is passed directly to the family member after your death. The property would still be subject to inheritance tax (IHT) but as a home is exempt from IHT, this could save thousands of pounds in unnecessary tax which would instead go towards the nursing fees and other debts.
Before transferring or putting a property into joint ownership, it’s important to get professional advice to ensure that the arrangement is suitable and meets your personal circumstances. Seeking legal advice to review a will before you die may also help to reduce the amount of money that creditors can extract from an estate during administration.
If you have savings, investments e.g. ISA’s, stocks and shares or unit trust funds in excess of £23,250 then it is possible for you to transfer these monies into your spouse’s name. If they are a non-tax payer then this may also reduce the amount of income tax that has to be paid from the funds which can be used to pay care home fees.
If none of these options suit your personal circumstances and there is no chance that you can meet care home fees out of your income, then it might be wise to think about taking out life insurance which may help pay for fees in the event of an unexpected death. If someone else is named as the beneficiary on this policy, they will receive a lump sum payment directly after your death which could go towards meeting care home fees.
Do you have to pay for care home if you have dementia?
If you or your family member is suffering from dementia then it is likely that they would be unable to fund their own care home fees as the condition gradually worsens and compromises mental ability. In this case your next of kin will still be expected to contribute towards costs but you can obtain a guarantee from the local authority – known as a deferred payment agreement – so there is no sudden financial impact on those responsible for remaining payments after death for example.
How do I find out if I have dementia?
- The symptoms of dementia depend largely on what type of dementia affects you or a loved one which includes Alzheimer’s disease, vascular dementia, Parkinson’s disease and Lewy body disease. Symptoms may include memory loss, lack of speech coherence, speech impediments such as repetitive questioning or repeating yourself because you know that they have not heard you the first time. Visit NHS Choices for further information on symptoms and how to access support if you’d rather remain independent in the comfort of your own home.
- For more info about deferring care fees, visit https://www.gov.uk/care-home-fees-for-over-65s or call the Age UK helpline on 0800 169 6577.
- Assistance from the council is not guaranteed and this article does not constitute or replace professional advice or financial advice. Seek professional financial guidance to determine your eligibility for a deferred payment agreement.
- Please share this article with others who may benefit from knowing their options around how to pay care home fees post death.