My husband’s dementia is getting worse and I’m struggling to cope so my children and I have made the difficult decision to look for a care home for him. We don’t have much by way of savings but we do own our own home, which I love. Will I have to sell the house to pay for his care once our savings have run out?

Lowestoft Journal: Jeremy Woodruff, director and chartered financial planner at Smith & PinchingJeremy Woodruff, director and chartered financial planner at Smith & Pinching (Image: Smith & Pinching)

Jeremy Woodruff of Smith & Pinching responds:

I’m sorry to hear about your husband’s worsening condition. Thankfully, I can reassure you about the need to sell your home. The rules for financial support for care are specific: while a spouse or dependant is living in the home, it will not be counted in the means assessment.

It is the Local Authority (LA) that provides the financial support for care. At the moment, they will provide some support to anyone who has assets in their name of £23,250 or less (in England). With jointly-owned assets, only the individual’s share will be included in the assessment. While his assets are worth between £14,250 and £23,250, your husband would be expected to contribute to his care from income and/or capital, but once his assets fall below £14,250, he will contribute from income only, with the Local Authority picking up the rest of the cost.

Anyone with assets over £23,250 will pay the entire cost of care themselves, known as self-funding, until their capital reduces to this level. It is a good idea for self-funders to get independent financial advice at this point so that they manage their finances to limit the overall erosion of their assets, if at all possible.

It's important to be aware that your LA will only contribute up to the amount they have set for the cost of care, so if you choose a more expensive home, you and the family will need to find funds to make up the difference.

There were plans to increase these thresholds with effect from October 2023 and introduce a cap on the amount you pay for care within your lifetime. However, these changes have now been put back until 2025 at the earliest. Fees paid prior to the implementation of the legislation, whenever that happens, won’t count towards the cap.

Your first step should be to contact your LA to arrange a care needs assessment. Once your husband’s care needs have been established, he will be given a care plan and the LA can look at his finances to establish what he can afford to pay. This is called the means assessment and will establish what support, if any, the LA will offer. You can then make a decision on the right home for your husband.

Any opinions expressed in this article do not constitute advice and is based on our understanding of the legislation as announced, which takes effect in October 2023.

For more information, please visit www.smith-pinching.co.uk