Some of us will need to be cared for in a residential home. Planning for this possibility is a very sensible thing to do, as you might have to make a financial contribution towards the ongoing cost of your care.

How to avoid or minimise expensive care home fees.

If the local council is arranging your care home, they’ll do a means test to decide how much you should pay towards it, and they may take into account the value of your home. A means test is a financial assessment where the local council calculates how much you may need to pay towards the cost of your care.

The means test will look at your capital and income, such as your savings, property, investments, pensions and any benefits you’re eligible for (even if you’re not claiming them).

If your capital and income is above £23,250 you’re likely to have to pay your care fees. If your capital and income are under £23,250 you might get some help from the local authority, but you may still need to pay some fees.

There are several approaches you can use to reduce the value of your assets and property, it is therefore important to ensure you plan effectively to ensure that the assets you have built up over your lifetime can be passed onto your family.