Long Term Care - FAQs
See also:
Long Term Key Issues
Long Term Care Client Library
What state benefits can I claim which are not means tested?
Attendance Allowance (AA) – Where the individual is over 65 and has been suffering from severe disability for 6 months or more an amount of £43.15 (lower rate) or £64.50 (higher rate) where care is needed on a 24-hour basis.
Nursing Allowance – Subject to assessment, where individual lives in a care home, a contribution based on three bands can be payable.
Disability Living Allowance – For people under 65, DLA has similar conditions as AA
If the State is paying do I have a choice of Care Home?
Yes, you can choose a State home, private home or a charitable home and it can be located near to friends or relatives.
What is the personal expenses allowance?
A fixed amount individuals are allowed to pay for personal expenses (newspapers toiletries) For 2007.08 it is £20.45 per week.
What happens if my capital runs out?
Once your capital falls to £21,500 you can ask for state help. It is therefore essential to plan ahead to ensure that care home costs are affordable as you could be forced into seeking top ups from family or in a worse case scenario having to move in to cheaper accommodation.
Who can make decisions when I cant?
We recommend all retired people who have not already set up an Enduring Power of Attorney to now set up a lasting power of attorney. Both these documents are described elsewhere on the website.
What is Notional Capital?
National Capital is that asset which can be assessed even though you might not still own it. This can include which has been paid to a third party or where it has been deliberately disposed of to reduce the assets held.
What assets / income are not included in the means test process.
|
Fully taken into account |
Partially disregarded |
Fully disregarded |
|
State pension income Pension Income Investment Income Capitals Withdrawals from a bond Income from a trust Annuity Income Most Social Security Benefits |
50% occupational pension where there is a spouse, the spouse does not live in the care home and the individual passes 50% or more to the spouse. |
Mobility part of disability living allowance. Income from mortgage protection policy Annuity income from equity release mortgage where spouse lives in dwelling Pension Salary Credit up to a limit |
What assets can the local authority not claim back and gifts made before going into the house?
If assets are invested as part of a Inheritance Tax planning exercise these assets will not be included as national capital.
Will my private medical insurance (PMI) policy cover any costs?
In general a PMI policy will not cover the cost of the long term chronic insurable conditions (i.e. dementia and MS) It is worth checking it out because for example osteoporosis would not be covered but a hip replacement may be regarded as an acute condition and hence would be.
What is carers' allowance?
Carers allowance is paid to people who spend at least 35 hours a week caring for a disabled person. It is paid regardless of age. Benefits are taxable. The carer must not be employed or being in full time education.