Later Life Care

Care costs are one of the most significant financial risks in later life — and one of the least talked about. Many families only begin to understand how the system works once they're already in it, at a point when the options for planning are far more limited. Understanding how care is assessed, what's included, and what can be done in advance makes a real difference.

How care costs are assessed

If you need care — whether at home or in a care home — the local council carries out two separate assessments. A health assessment looks at what level of care you need: help with washing, dressing, mobility, and similar day-to-day needs. A financial assessment then looks at what you can afford to contribute towards that care. If your needs are primarily health-related and meet a certain threshold, you may instead qualify for NHS Continuing Healthcare, which is fully funded — this sits outside the council's process entirely and is worth understanding in its own right.

• Above £23,250

  • You're generally expected to fund your own care in full

• £14,250 – £23,250

  • A partial contribution is required, alongside council funding

• Below £14,250

  • The council contributes more, though income may still be assessed

How trusts interact with care planning

This is one of the most misunderstood areas of later life planning. Assets held in a discretionary trust are generally excluded from a financial assessment, because no individual has an automatic right to them — the trustees decide how and when funds are used. A life interest trust is treated a little differently: if someone receives income from the trust, that income may be assessed, but the underlying capital — a property, for example — is usually protected. A protective property trust, often written into a Will, can prevent a share of the family home being included in the assessment altogether, provided it's structured correctly.

Timing is everything

Local authorities are alert to assets being moved into trust specifically to avoid care costs — this is known as deliberate deprivation, and if it's identified, the assets may be included in the assessment regardless of the trust. The key word is foreseeable. If a trust is set up shortly before someone goes into care, the argument that it was done to avoid care fees carries real weight. If the same trust was set up years earlier — when care wasn't on the horizon — that argument is far harder to make. This is also why a trust written into a Will is so effective: because children never receive the asset directly, there's nothing for them to have "deprived" themselves of in the first place.

"Planning for care in later life isn't about being morbid — it's about giving yourself and your family more choices. The families who've thought about this in advance are always in a better position than those who haven't."

The documents everyone should have in place

Whatever else is or isn't planned for, there are some documents everyone should have regardless of age. A Health & Welfare LPA ensures someone you trust can make care decisions on your behalf if you're unable to. A Property & Financial LPA means your finances can be managed without court intervention. An up-to-date Will ensures your estate is distributed as you'd wish. An Advance Decision (sometimes called a living will) lets you record your wishes about medical treatment in advance, so they're respected even if you can no longer communicate them. Together, these form the foundation of any care plan.