We have an ageing population and this is likely to mean a greater number of dementia sufferers and more people requiring care at some point in the future. Channel 4’s Dispatches programme on Monday 20th November will investigate the so-called dementia-tax and why some people pay for their care when others do not. This is a murky minefield at the moment and government are looking in to finding a residual line that works for everyone.
So What Is Dementia Tax?
This is a controversial bill that has been dubbed “dementia tax” and is designed so that all pensioners pay towards their care even if it means draining their life savings and selling their homes. There are people out there that genuinely feel like any inheritance that should rightfully be theirs will be handed over to the state to pay for their parent’s care and some believe they could even become homeless and destitute because of this tax.
What’s The Policy?
At present if you have over £23,250 in assets then you will have to pay for your own care, this government wants to up that to around £100,000 and which think tanks say could benefit hundreds of thousands of the poorer pensioners that maybe do not own their own homes, but do have savings between £23,250 and £100,000. The idea then is that payments are deferred until both married couples die.
There are some policies that let you get around this – these are:
- If your partner or ex partner lives in your home.
- You have a relative over 60 and under 18
- Downsizing your property
- If care home is temporary
According to a Guardian article published in October self funders generally pay around £797 per week for their care where as local authorities will pay on average £543 which is nearly 46% subsidised. Channel 4’s Dispatches will discuss why some have to sell their homes for care and others have access to NHS funding and will explain on ways to avoid the dementia tax.
Here at Temperley Taylor we have experts on hand to guide you through the process on what the best ways are in helping you make the best decisions when it comes to inheritance, why not setup a free no obligation meeting with Rachael or Nicola or call us today on 0161 643 2411