Care Home Fees

By May 19, 2017Care Home Fees

Anyone reading the Daily Mail’s front page headline yesterday might be forgiven for thinking that you won’t have to sell your home to pay for care.

But that isn’t the whole story as Paul Dodsworth, STEP and Managing Director of Estate Planning Solutions explains “Whilst it is true that a person in care will not have to sell their home whilst in care, all that is happening is that you are being allowed to defer paying your care fees until after you have died. The facility to do this already exists with the Deferred Payment Agreement, which is conditional upon you giving a legal charge over your property (ensuring the debt is paid) and the Local Authority can charge interest and “reasonable” administration fees (ensuring the debt is as large as possible).  Neither were allowed before the Care Act 2014.

This is just the reintroduction of the provisions dubbed the “new stealth tax” when they were first considered in the Spring budget and seemingly rejected after a lot of negative press.  The Govt. knows it is faced with a massive cost for social care as the population ages and have no choice other than to introduce deeply unpopular methods of meeting those costs.  The easiest way is to take your assets after you’ve died because you can’t complain or cause a fuss!

However, probably the most important thing to understand is that legitimate planning, done at the right time and for the right reasons, is still possible and actually quite common, particularly for people with relatively modest estates.”

For more information on how you can protect your wealth for your children and grandchildren please call us free on 0800 781 6658 or visit our brand-new website at

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