Qualifying for support State assistance with the cost of old-age care is means-tested – primarily by imposing upper and lower capital limits on the value of a person’s savings, property and other assets. Long Term Care In England, for example, if an individual’s assets including any property have a total value of less than £14,000, care bills will be paid in full by the State. If personal assets exceed £23,000, an individual will normally be expected to pay for their own care in full. (Different upper and lower capital limits apply in Scotland, Wales and Northern Ireland. See table opposite for more information) A reducing scale of support applies between £14,000 and £23,000, based on the person contributing £1 a week for every £250 in assets over £14,000. So, someone with assets of £18,000 would be expected to contribute £16 a week (£4,000 ÷ £250 x £1 = £16) towards care.
Financial assessment
Long Term Care Local authority means-testing will look to include most capital and savings held in an individual’s name, including, Bank and building society accounts; National Savings and Premium Bonds; Stocks, shares and investment products; Income from state, personal and occupational pensions; Property and land (less any mortgage). Jointly-held savings and assets will be usually divided by two to calculate an individual’s share. Some assets are disregarded by the means test, including: Surrender value of life policies / annuities; Some compensation payments held in trust or by the courts; Some investment bonds with a life assurance element (check with provider); Property that continues to be inhabited by a partner, dependant or certain other parties.