Do I have to sell my parent's house to pay for care?
When emotional decisions need to be made about care for a loved one, it can feel difficult to talk about how the care will be funded.
Naturally, you will want only the best for those you care for, but it’s important to understand how care will be paid for, and what this means for the choices available to you as a family.
Many families ask, “will I have to sell my parent’s house to pay for care?”. The answer depends on individual circumstances.
This guide covers some of the sensitive financial questions about care, including whether the care recipient’s home will need to be sold in order to pay for the support they need.
Local authority funding vs self-funding care – what is the difference?
In essence, Local Authority funding means that the cost of an individual’s care will be covered by the relevant Local Authority, whereas self-funding care is paid for by the individual receiving care.
However, it is not always that black and white, as sometimes the Local Authority may agree to cover part of the care fee, with the individual or their family being responsible for topping up any shortfall.
Decisions around funding eligibility are made on the basis of an individual financial assessment, carried out by the Local Authority’s adult social care team. This assessment will look at the combined value of the individual’s savings and assets (including owned property), and compare this against an upper capital limit set by the government, currently £23,250.
Individuals with assets above this value will be considered self-funding, whilst those with less will usually qualify to have some or all of their care costs met by their Local Authority.
When does a property count as an asset? Will we have to sell our parents’ home to pay for their care?
If the individual in need of care has more than £23,250 in savings or other assets, then they will be considered self-funding.
In some cases, a property may be included as part of the financial assessment, but this depends on individual circumstances. For example, if a spouse or another dependent person continues to live in the home, it may not be taken into account.
Because every situation is different, owning a property does not automatically mean it will need to be sold.
The best next step is to speak directly with your Local Authority, who can explain what applies to you.
What if the house has not yet sold, but my parent needs care now?
Care needs can sometimes arise out of the blue, and the need to pay for care can be sudden and unexpected. If this care needs to be paid for from a house sale, but the house has not yet sold, the Local Authority may be able to support with a temporary arrangement to help cover care costs for a short period. In some cases, this may involve schemes such as a Deferred Payment Agreement, where costs are recovered at a later stage.
How to pay for care home fees
As mentioned above, care home fees can be paid by the individual receiving care, a funding body such as the relevant Local Authority, or a combination of the two.
To determine who pays what, an individual financial assessment will be carried out to assess whether the individual is classed as self-funding, or eligible for financial support towards the cost of their care.
Self-funding care fees can be paid from savings, or the sale of property or other assets. We recommend seeking independent financial advice to determine the best course of action to suit your circumstances.
Some families also contribute towards the cost of their loved one’s care, to ensure that they are in an environment where they can feel comfortable and at home, as well as receive the care that they need.
Self-funding care home advice – what happens if savings run out?
Over time, it’s natural for savings and assets to reduce when paying for care. If this happens, the Local Authority will reassess financial eligibility and may begin to contribute towards the cost of care.
This is a gradual process, and support is available to help families understand their options and plan ahead.
How Somerset Care can help
At Somerset Care, we understand that conversations about funding care can feel complex and emotional.
Whilst we are not able to provide financial advice, we are here to guide and support you through the process – helping you understand your options and feel confident in making the decision that is right for you and your family.
Need to talk the options through?
Our aim is to make what can be an overwhelming and emotional journey as reassuring and straightforward as possible. Please contact our friendly Enquiries Team for expert care advice and to explore the support options available for you and your loved one.
