Paying for care can mean an expensive and open-ended commitment. But care funding doesn’t have to risk the whole of your estate, there are different ways of meeting these costs and expert information and advice is available to help you choose which is best for your circumstances.
What follows is a brief summary of the six main ways of paying for care and it is important to assess which method fits your circumstances.
The Deferred Payment Scheme – Your local authority may meet the cost of your care and place a debt on your property. No interest is charged during the lifetime of the person who requires the care.
Rent the property out – If you have a property it may be feasible to rent it out and put the rental income towards the cost of care.
Equity Release – It may be possible to release capital or income by using the value of your property. You will usually have to pay interest on the funds released. To understand the features and risks associated with such products, you should ask your financial advisor for a personalised illustration.
Cash – You may simply put your capital into a savings account. Be careful as you may end up having to use your capital to fund your care.
Invest – You could look to make your capital worker harder in order to produce a greater return that if it was left in cash.
Buy yourself an income – You could use some of your capital to buy yourself a guaranteed lifetime income payable monthly, protecting your remaining capital and solving your funding issues.
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