FUNDING the Perfect Residential Home – how to budget for residential care

Oakridge Care Group Ltd gives its advice on the key points families and residents should consider

After 25 years in the business, the Oakridge Care Group Ltd http://oakridgecaregroup.com  prides itself on giving families and individuals the very best advice in selecting residential care homes. The Oakridge Care Group is  unique in that is the the only home to have an information booklet endorsed by the local authority that gives potential residents and loved ones the very latest advice about funding care and how to get funding, should that be necessary.

Where do I start looking?

A doctor is a good place to start for needs assessment advice, as is the local social services, and families, friends and individuals shouldn’t be afraid to ask for help, this does not mean that they are giving up the right to choose in anyway whatsoever - the resident and  family members/friends will always have the final say! There are organisations  such as the Quality Care Commission, Age Concern and Help The Aged that can help with advising people  on how to find retirement accommodation, your doctor, social services and even local assisted residential living centres and day centres will all help people to find out as much information as they need before making that all important decision. Be warned, the star rating they previously awarded is no longer operational and so it can be tricky to use this as a guide in the present day if ownership or management has changed since then. Oakridge was previously awarded the very high accolade of three stars and as the management and ownership is still the same, individuals and families can expect the same level of care even if the rating no longer applies.

Who can I talk too?

We as a service provider recognise that at times it can be bewildering journey placing either yourself or a loved one into care.  Taking this a step further we have instigated a Finance Information Clinic.  This is open to everyone who is looking into reserving a placement within the Oakridge Care Group Limited homes, or is placed with us through the local authority.  The aim of the clinic is to try and reduce the stress individuals go through when placed in this situation.   The clinic is available to current and potential residents and their family representative.  It is a walk in clinic but appointments are recommended for the weekends.  You can book a one to one with Philomena Smith Group Finance Manager, by contacting Oakridge Care Group Limited on 01652 240293. This is a FREE service, and as far as we are aware the only one of its kind certainly in North Lincolnshire and North Yorkshire.   

Also you can contact your

Local Authority Adult Health Care Team, Local Carers Support Group, and Care Quality Commission (CQC)

Do I have to sell my/their property?

There are myths pertaining to this question that are raise regularly.  The short answer is “No”, but if the Local Authority were paying the funding there is a protocol to adhere too.

·      The local authority may place a Restriction against the Residents property to ensure the local authority is notified when the property is sold.

·      When the property is sold the resulting capital will be taken in to consideration when assessing the charge.

·      After 12 weeks a resident will be liable for the full cost of their care, but will continue to pay an assessed charge pending the sale of their property.  During this period a debt will accrue against the sale of the property.

What benefits can I claim for while in care?

·      DLA Care / AA cease after 4 weeks in care (LA/NHS funded stays only)

·      Any payments for dependants or housing costs included in Income Support / Pension Credit will normally cease on admittance to permanent care

·      Couples on Income Support / Pension Credit must claim as single people when one or both is admitted to permanent care

·      As from May 2003 benefits for people admitted to hospital will not normally be reduced unless the stay exceeds 52 weeks.

·      There is no extra income / benefit available to people admitted to Residential Care

·      Self-Funding residents can continue to receive AA/DLA care after the first 4 weeks in care.

What happens if Inheritance Tax applies?

What happens when a property is sold to finance nursing or residential home costs?

If the capital is simply held in a bank account then it can be included in their estate for inheritance tax purposes on death. If the capital is used to purchase a long term care plan, then it may be ‘lifted’ out of his estate. If inheritance tax is a major concern for the family, speak to an accountant who specialises in estate planning.