The government has proposed that from April 2017, a cap of £75,000 will be applied to care fee costs.† Thereafter the state will step in and pay for the costs of care.

• The £75,000 does not apply to all types of care.† The cap would only cover “standard-rate care” costs for people with high care needs.†

• For example, if a person is receiving residential care, they will be expected to contribute towards their ìhotelî costs such as food and accommodation.††

• Currently anyone with assets over £23,250 is expected to pay for all of their care fee costs – otherwise known as the means-test threshold.† This threshold is set to rise to £123,000 under the governmentís plans.†

• The state will be able to contribute to the cost of care fees with revenue from the introduction of a flat-rate state pension and from inheritance tax.††

• Inheritance tax is to be frozen for another three years.† The freeze of £325,000, or £650,000 for married couples or civil partners, was due to end in 2014/2015.†

• Freezing the inheritance tax threshold at its current levels will mean thousands more will be caught by inheritance tax especially those with homes in areas where house prices continue to rise.†

Now more than ever is the time to consider inheritance tax planning in addition to considering your options should funding care fees be a concern.†

Please contact us for further information by calling 020 3128 7081 or sending us an email at info@ashtongrace.co.uk

Did you enjoy reading this article? Why not sign up to receive our informative newsletter.† You get sent monthly email updates on all the goings on and developments within the area of wills and estate planning; inheritance tax, trusts, the lot! You can sign up ñ for free ñ online here.