Herald - Issue 413

7th October 2021 • The HERALD • Page 55 v SUPPORT YOUR LOCAL SPECIALISTS v ASK A PROFESSIONAL NP Bookkeeping & Accounting • Bookkeeping, VAT, Payroll • Streamlined Services & Free consultation • Insured & Certified 07742 613615 or nandie.pretorius@np-bookkeeping.co.uk Cap on Care Fees by Lindsay Taylor, Associate Solicitor A policy that has been mooted for years by successive governments is that of a ‘care fee cap’. Rather unexpectedly the news dropped on the 7th September that the cap was nally to become a reality. ere is at present no cap on care costs but it will help to set out the current capital limits a person requiring care is allowed to have before the state will assist with care costs. • Capital assets above £23,250 - Fully self-funded • Assets between £14,250 and £23,250- Partially funded by Local Authority • Assets below £14,250 - Fully funded by Local Authority • Personal expense allowance £24.90 - Weekly allowance a person can spend on themselves when funded by Local Authority e cap on care costs is to be set at £86,000 over a person’s lifetime. It has been con rmed, although not widely published, that this will not cover accommodation, food and other related non-care costs known as ‘daily living costs’. No mention of this distinction was made in the 33 page plan released by the government. e changes to the thresholds due to come into force from April 2022 are set out as follows: • Capital assets above £100,000 - Fully self-funding and the care cap applies • Assets between £20,000 and £100,000 - Partially funded by Local Authority and the care cap will apply if limit not already reached • Assets below £20,000 - Fully funded by Local Authority • Personal expense allowance to be increased but no details yet - Weekly allowance a person can spend on themselves when funded by Local Authority Although expected at the announcement, no promise was made by Boris Johnson that you will not have to sell your home. It is a sad reality that, if you have insu cient cash funds and your property is treated as part of your assets for assessment purposes, that your home may still need to be sold. is is an area that still requires additional guidance from the government and it is important to keep abreast of further clari cation. What has been con rmed is that the cap will not be backdated, so those wanting to plan for future care cannot rely on the new rules before they are implemented. If you were considering making a gi of excess funds above the care cap you will need to think carefully and carry out the complex calculations of what you are required to retain, before you discover that you have gi ed money you are subsequently informed should not have le your ownership. Even worse, those currently in care will not have costs already paid set against the cap. If you or your family are required to pay top up fees to the care home, it has been con rmed that these will not be set against the cap on care. e best way for a couple to ensure that half of your property value is protected from all care fees, including those related to daily living costs, is to set up a Life Interest Trust in your Wills. is will have the e ect of ensuring your spouse can bene t from living in the property and ring fenced away from the local authority who will look to claw back care fee payments. Lindsay Taylor is an Associate Solicitor based at their Covid-secure Hythe O ce. For your conveyancing and private client needs you can contact CGM Solicitors on: 023 8084 2765 for an appointment. Lindsay Taylor