Ministers have now admitted the proposed new legislation to be introduced by 2017 will only help 12% of older people. Those who have to go into care will still be liable for the whole of their care costs if their assets,including their home, exceed £118000. Below this figure Government will meet a proportion of the costs although as yet exact contributions have not been stated.
The cap on total fees to be paid for care by an individual is £72000 excluding food and other living expenses which could increase the total liability to almost £100,000. for any single person. This will reduce considerably the amounts to be inherited by beneficiaries under ordinary Wills.
Proper planning through the use of Property Protection Wills or Lifetime Property Protection Trusts is vital to preserve maximum assets to be passed on to future generations.