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How is your Property assessed for Long Term Care Funding?
For the majority of people who need to go into permanent care, the biggest asset they own is their home.
The inclusion of the home in the Local’s Authority’s means test or Financial Assessment depends on whether: -
- the spouse or partner of the person needing care still lives there;
- a relative aged over 60 of the person needing care still lives there;
- an incapacitated relative of the person needing care still lives there;
- a child under the age of 16 still lives there and the person needing care is responsible for maintaining them.
If any the above apply, it should be excluded.
Your Local Authority also has the discretion to ignore your home it if it remains the sole residence of a person who has been caring for you and that person specifically gave up their home in order to care for you. Please note however, this is not guaranteed and the Local Authority may take a different view depending on the circumstances.
Your home may also be excluded if you are not noted as the beneficial owner of the property. Normally the Deeds of the property (or entry at the Land Registry) would establish the owners of the property and, in most circumstances, indicate the beneficial interest. It is possible, however, for the beneficial interest to be owned by someone else. For example, if your son or daughter has brought the house for you and you can demonstrate that you have never: -
- contributed to the cost of purchasing the property;
- paid any mortgage on the property; or
- paid for any repairs or home improvements carried out at the property.
If none of the above situations apply, your property will usually be counted in full under the means test.However, if your other capital is below the “upper capital threshold”, currently £23,250 and your income is insufficient to meet the fees being charged by the Care Home, the market value of your property should be disregarded for the first 12 weeks from the date the individual moved into permanent, long term care. This is called the “12 week Property Disregard”.
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