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Young woman talks to elderly woman while drinking tea

With good financial advice and planning you can afford the best possible care

17 September 2021

Young woman talks to elderly woman while drinking tea

If you or a loved one require long-term care the last thing you want to think about is money – yet, in such circumstances, finances are often the biggest worry. If you find yourself in this situation, you may well be asking: How will I be able to afford the standard of care I or my loved ones deserve?

Cramond Residence offers a far superior level of care compared to our main competitors. The good news is that this exceptional care is accessible to a wide range of people because, with careful financial planning, it is possible to unlock the funding required and so access the quality of care you or a loved one deserve.

What’s more, in many cases people have found that they can structure their finances in such a way that their care fees can be paid indefinitely, while they still preserve significant capital for their beneficiaries.

One of the main approaches you can take to funding care is to capitalise on the value of your home: For example, you can rent it out, release its equity or sell it and invest the proceeds or use them to buy a Care fee plan (also known as an immediate needs annuity). This is a specialist insurance product that provides a guaranteed income for life which is paid direct to the care home. The money you unlock from your property can be augmented using pension and other income, savings or other investments.

To find the best solution for your funding needs it is a good idea to speak with a specialist financial advisor. The Society of Later Life Advisers is a good place to look for a suitably experienced, later-years financial adviser.

Remember that moving into Cramond Residence means that you won’t have to pay all your day-to-day bills or pay for the maintenance and upkeep of your home. This is one of the reasons why moving into a care home is often much more cost effective than remaining in your own property and getting carers to come in to look after you.

Another thing to consider is that local authority financial support is available for care home fees in Scotland for those who qualify. In 2021, assistance is available for those whose assets are worth less than £28,500. The amount of support provided will depend on the specific financial circumstances of the person going into care. Remember that the value of your main home is disregarded from any local authority assessment of your assets for as long as your partner remains living in it.

Whatever your financial circumstances, you will receive support if you are assessed as needing personal care and/or nursing care. In 2021, local authorities in Scotland provide personal care funding of £193.50 (per week) and nursing care funding of £87.10 (per week). This money is paid directly to the residential care provider.

If you are eligible for local authority support, you’ll need to top-up the amount the authority will give you, to be able to come in to Cramond Residence. This is where a member of your family might be able to step in to help.

At Cramond Residence we require evidence that you’ll be able to fund your full-time residential care for three years. If you need to take any major steps to secure this funding (e.g. the sale or rental of a property), then we understand that this may take time. One option is to come into the home for short-term respite care while you get your long-term finances in order (you do not have to provide proof of funding ability for Respite care). This will also give you the opportunity to see if Cramond Residence is for you.

If you have any questions about the funding of care, or would like to visit Cramond Residence to see our facilities and talk things through with us, just call 0131 341 4037.