Finance
Finance

Financial Advice for the Elderly

September, 2012 TSG_PTIMG_620x920_Money

If you’ve found yourself in the situation of researching care for elderly people, whether it be a residential home facility or home care assistance, one of the first things that people worry about is the cost. Over the next few days we’re going to take a closer look at ways to assist with the cost of home care for elderly people.

Local Authority – If your elderly family member has been assessed as needing home care assistance the local authority will conduct a financial assessment (means test) to establish if they qualify for financial assistance. This assessment must be in accordance with the ‘Fairer Charging’ guidance.

The calculation will be based on a threshold amount; if their capital is less than £23,250 (not including the value of their home) their income will be assessed and they may be entitled to financial assistance. If the capital is over £23,250 then they will be charged the full cost of your care.

Some councils are more generous and increase the capital threshold or set a maximum amount they expect anyone to pay for their care. Contact your local council to find out more.

Direct payments – Following the assessment your council may offer your relative Direct Payments; they pay you the cash so that the person in question can arrange their own care. However, the money must not go to a relative or anyone living in the household unless they are specifically employed as a live-in carer. You have to keep records to show exactly how you have spent the money.

Make sure you pop back later in the week when we look at more financial advice for elderly relatives in the battle against care costs.

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