I’m over 60 and in a 30+ year career as a Financial Adviser ended up specialising in Late Life Advice, that is Long Term Care, Depreciating Capital Investment ( spending Capital as income) and Inheritance Tax.
The Language used can be quite emotive so let’s get simple.
The very Wealthy or those who have lived on benefit need not worry about the “ cost” of care.
The average family could have a lot of their modest wealth impacted by Long Term Care costs.
Health Care is free in this country.
Old Age is not an illness.
The “ fees” people pay for are for the domestic “ hotel” facilities.
The better the facilities the more expensive the fee.
The more personalised the medical care , the more expensive the fees.
A Family or a Spouse have no financial responsibility for a Husband /Wife / Father or Mother
Only the person receiving Care is assessed as to their ability to contribute.
Your HOME is not viewed as an asset.
If you are “ in Care” what used to be your Home ( if it is now empty) is now just another HOUSE ( as the Care home is your HOME) and so, it’s now an ASSET.
If a surviving spouse or “dependent or long term resident relative” is still in your old HOME then it is still a HOME and not a financial ASSET.
To ensure no more than the absolute requirement is paid in the event of care do the following.
Change how the family HOME is owned, from the common Joint Ownership to “ Tenancy in common”. This mean both mam and dad own 50%. Joint ownership means any surviving Spouse ends up owning 100% of the HOME, or ,if the surviving spouse is in care 100% of an empty house that IS NOW AN ASSET. If the family home was purchased recently (after 1986??) you can change the ownership basis on line, if not , you’ll need a solicitor.
Once you’ve changed ownership redraw any Will to include a Discreasionay Will Trust to show that the 50% ownership of any deceased spouse goes into trust (and so eventually to the kids when the surviving spouse dies) and NOT directly to the surviving spouse.
Split ALL other investment into single ownership, this show exactly who’s money is who’s , this helps in the financial review once care is provided.
This will avoid you contributing over what you are due or “ wish” ( for a nicer CareHome) to pay.
To help clarify or confuse the issue, think on this,
Why should People NOT in Care (and their children) pay higher taxes to help fund a national Long Term Care scheme ( and so reduce their wealth) to allow those IN CARE to pass their biggest Asset onto their kids untaxed.
Take advice , I can answer some questions but specific costing and allowance amounts etc have all changed since I hung up my pen.
The Whole Tax system in the Country is flawed, and the financing of all social care is under direct attack by this Government.