Raising the limit of savings allowed to care home residents from £24,000 to £30,000, as the first part of the Welsh Government’s overall plan to raise the savings limit to £50,000, is expected to benefit many care home residents in Wales who currently have to fund their own care fees.
Following the rise, care home residents will now be allowed to retain £30,000 of savings at which point they will no longer be responsible for paying their own care fees; however those with savings over £30,000 will still be responsible for funding their own care costs.
Whilst the move is a step in the right direction for anyone who needs to move into full time residential care, a large amount of those requiring care will still be responsible for funding their own care fees. With this in mind, people are encouraged to seek professional advice as to what they can do in order to minimise the amount of fees they may ultimately need to pay, ensuring they can pass on to their loved ones as much of their savings and assets.
Ben Talbot from Gamlins Law said “Steps can be taken through preparation of a Will to help maximise the estate anyone leaves behind, even if they are required to move to a care home in the future. I would always recommend anyone to consider planning for care fees when making a Will or to consider amending their existing Will to ensure it serves to leave the most possible to their loved ones”.
In addition to the increase in the savings limit, the Welsh Government has also announced that War Disablement Pension (WDP) will no longer be considered in a person’s financial assessment for care fees, meaning they will no longer need to use it towards paying for care fees.
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