Many elderly people find that they are less able to cope on their own with their day to day needs in their later years. When the time comes a care assessment will need to be carried out in order to establish a care plan. A means test will also be carried out in order to determine who will pay for the recommended care plan.
The general means test would see anyone with assets exceeding the upper means test level of £23,250 in England and Wales paying for their care in full for themselves. They are known as self funders. The current lower level for the means test stands at £14,250. Someone with total assets below this threshold would be in the position where their local authority would pay for their care after taking into account any pension income or benefits that you may be entitled to. An individual with assets assessed between the upper and lower limit would receive some contribution for their care by the local authority.
In years gone by you may have found the Local Authority less than helpful in providing information to those who are self funding. You may have found yourself being cast away from the help and advice you required as the Local Authority may have felt it was a wasted resource. A tide of change is now sweeping the country which is being driven by Partnership who are a major provider of Long Term Care Plans and enhanced annuities for retirement purposes.
In the last couple of years their initiative has been bringing to the fore the need for specialist financial advice for those who are expected to self fund their care. Local Authorities are keen to get involved in the programme as they can see the future benefits of those people currently self funding remaining so for the rest of their life rather than just drawing from their capital to pay for their fees and then going back to their Local Authority once their money has run out.