Do you know about care fees and the impact they could have on your estate?

So, last week we talked about inheritance tax and the impact it could have on your estate. This week we are going to look at care fees.

Now I know talking about care fees might not be at the top of your list as you may be a busy person working, looking after the kids, visiting your parents, planning for the weekend and are quite frankly too young to even think about what could happen when you are old but, believe me, this is one of those subjects the "future you" will want to know about. It's also one of those subjects you need to speak to mum and dad about, and sooner rather than later!

First things first: What are care fees?

If an individual ever needs to move into a residential care home or need at-home support, it doesn’t come cheap. In fact, depending on your needs and where you live, care fees can cost a considerable amount each year. If dementia or complex needs are involved, numbers can climb fast. Imagine, care home fees are £1,125 per week. That's £54,000 per year. Often care fees are more than this they can be £2,000 per week in a super duper care home. That's £104,000 per year.

“But I’ve worked hard for my home and savings!”

This is what I regularly hear from my clients and people I talk to about care.

In England, if you have:

• More than £23,250 in savings and assets (including the value of your home), you’ll likely be expected to pay for your own care.

• Between £14,250 and £23,250, you might get some help from the local authority, but you’ll still have to contribute.

• Less than £14,250, your care will be fully funded by the local authority — but only if you meet the eligibility criteria.

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So yes, that family home you were planning to pass down? It could end up being used to cover your care costs. If you compare this to inheritance tax which we looked at last week

• Inheritance tax - keep £325,000

• Care - keep £14,250

• Inheritance tax - tax at 40% over £325,000

• Care - equivalent to tax at 100% over £14,250

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Care can have a much bigger impact on your estate than inheritance tax!

Will I have to sell my house to pay for care?

Possibly. But it’s not always that simple.

If you live alone and move permanently into care, your home may be included in the financial assessment — unless certain exemptions apply.

If your spouse, civil partner, or a dependent still lives in the home, the property is usually disregarded from the means test.

There are also deferred payment schemes, where the council covers your care costs temporarily and recovers the money later (usually when the house is sold). So, while the home may not need to be sold immediately, it can still be used to settle the bill in the end.

Protecting your home is the first reason you must take professional advice in relation to care funding.

Will my children get an inheritance if I have to pay for care?

I hear this all the time. You’ve worked hard and saved hard. You've paid your taxes, contributed to a pension and looked after your family with insurance policies and life cover. You have done everything you could to make sure they have enough to be secure for the future, but you forgot to plan for care!

This is why understanding the impact of care fees is so important, not to scare you, but to empower you. Because with a little planning, you can make sure your children receive some inheritance

So, what can you do?

What are the options to protect your hard earned savings and home:

1. Make a Will (Yes, it really matters!)

Your will is your voice when you’re no longer here. And a well-drafted will can include trusts that might help protect assets, especially for your spouse or children.

2. Consider a Property Protection Trust

These are special types of wills where each partner leaves their share of the house in trust rather than outright. If done properly and early enough, this may help ring-fence part of the property from being used for care fees.

⚠️ Please be careful when talking to advisers about these. There are many non-legally qualified companies out there which sell trust schemes to avoid paying care fees. Make sure you only speak to a qualified and experienced solicitor or legal executive about these and do not sign up to a scheme because they invited you to a meeting with a glossy leaflet!

3. Lasting Powers of Attorney

If care becomes a reality, you want someone you trust to make decisions about health and money. Having LPAs in place means you will continue to be heard, even if your capacity is lost.

4. Be open with your family

Talking about the “what ifs” now can avoid heartache later. I often help families have these conversations with compassion and clarity.

Steps to take now you know!

Care fees can have a huge impact on your estate but with good advice and early planning you can still protect the things that matter most.

My job isn’t about paperwork and law books. It’s about people. Real families, real fears, and real futures. It's about understanding what worries you and looking at how we can protect you, your family and everything you have worked for.

So if you think you are too young to think about care just remember my client who was in his 30s when he was involved in a road traffic accident. He needed a lifetime of care in a care home from his 30s. Or perhaps my client who developed early onset dementia at the age of 47. She may need care in a care home in the future. I could tell you about Karen who suffered brain damage from carbon dioxide poisoning when she was 54 and needed full

time care from that point onwards.

Care is not about getting old. Care is about what happens if your health goes wonky. We all need to think about it! Even if it is not you today thinking, think about it for mum and dad.

The Argo team are specialists in advising families in relation to their care journeys. We are with you from the beginning to the end and at every step in the middle. We will support you and guide you through this difficult, overwhelming process and help you to manage emotions along the way. If you need help or think a chat would be a good idea please give us a shout!