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Care Costs Announcements...What does it mean for you?
- AuthorWilliam Ware
This week saw a milestone decision from Jeremy Hunt, the Health Secretary, when he announced changes to the funding arrangements for the elderly. William Ware, Private Client Partner, has welcomed the plans that will see pensioners with savings of up to £123,000 receive state support for their care costs, a rise from the previous amount of £23,250.
William advised, “While it gives some certainty, for many pensioners in Hampshire, or working couples approaching retirement, the changes will be fairly meaningless because of the cost of houses in Hampshire. Those couples with a modest nest egg and a half share in a family home will rapidly find they are not eligible for the government funding.”
The government has indicated that the cost of funding will be met out of inheritance tax receipts that will arise from a freeze on current so called nil rate band of £325,000.
William continues “So far as Hampshire dwellers were concerned, it was probably a double whammy with inheritance tax bills effectively going up again; large sections of our tax payers and rate payers in Hampshire would still have to face the full cost of care simply because of the value placed on their home (or their half share in it) – and because of the fact that any lump sum payment they may have had from a pension or nest egg accumulated savings that they may have preserved will still be taken into account – and the £123,000 limit proposed quite easily exceeded.”
William concludes, “Those who are contemplating making fresh Wills should discuss their succession plans with a solicitor to see what they could do to mitigate the inheritance tax liabilities and minimise the impact of the cost of care and the cost of accommodation on top of those care fees.”
To discuss your will, or the impact these changes could have on your savings, contact William or the Private Client team on 01329 288121, or visit the website www.warnergoodman.co.uk.
This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice. All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.