When someone moves into a care home and their fees are being paid (in full or in part) by the local authority, they are not expected to hand over every single penny of their income. The law recognises that people still need a little money for the small but important things in life. This is where the Personal Expenses Allowance (PEA), often called the personal allowance for care, comes in. How Much Is The Personal Allowance? For 2025/2026 in England, the personal allowance is £30.65 per week. (Scotland, Wales and Northern Ireland set their own figures, which can vary slightly.) This is the minimum amount of income a person in residential care is allowed to keep for themselves, regardless of how much the local authority contributes to their care fees. The figure changes every year in April so if you are receiving support from the local authority it is always sensible to check they have allocated the up to date figure when calculating your correct contribution to care charges. What Can It Be Used For? The allowance is designed for personal use only. Think of it as your "comfort fund." Common uses include: Clothes and shoes Toiletries and personal grooming items Stationery, books, magazines or newspapers Small treats like sweets, biscuits or a favourite tipple Outings or activities Birthday presents for loved ones It cannot be asked for by the care home to put towards fees — it is ring-fenced for the resident. Why Does It Matter? This allowance might not seem like a lot, but it’s about dignity and independence. Even in a care setting, people should have the freedom to buy the little things that make life feel personal and enjoyable.

A   best interest decision is a formal process used to make choices on behalf of someone who lacks the mental capacity to make a specific decision for themselves. This concept is central to the Mental Capacity Act 2005 in England and Wales, which provides a legal framework for supporting individuals who may be unable to make decisions due to conditions such as dementia, learning disabilities, brain injuries, or mental health issues. There is no single definition of best interests. The Mental Capacity Act sets out a checklist of factors to be considered when making a decision. A best interest decision is a formal process used to make choices on behalf of someone who lacks the mental capacity to make a specific decision for themselves. The concept is key to the Mental Capacity Act of 2005 which governs capacity law in England and Wales. There is no one definition of bests interests. Instead this piece of legislation sets out a checklist of factors which need to be considered when making a best interest decision. This process will be used when someone is assessed as lacking capacity to make a decision for themselves and has no advanced decision, lasting power of attorney or deputyship order in place, and the decision cannot be delayed (if there is a possibility of capacity returning). Best interest decisions are not just medical decisions. They can be related to financial matters but also more general life decisions. If you are faced with making a best interest decision you need to consider the individual's needs and welfare in the widest sense and take into consideration their wishes and feelings, values and beliefs. When Is a Best Interest Meeting Needed? A formal best interest meeting may be convened when: The decision is complex or life-changing (e.g., surgery, moving to a care home) There is disagreement among those involved The person has no close family or friends to consult How Is a Best Interest Decision Made? The process involves: Gathering Information: Understanding the person’s medical, emotional, social, and cultural needs. Consulting Others: Involving family members, carers, healthcare professionals, and anyone else who knows the person well. Considering the Person’s Wishes: Taking into account past and present wishes, beliefs, and values. Balancing Risks and Benefits: Weighing the potential outcomes of each option. Documenting the Decision:   Clearly recording the rationale, who was involved, and how the decision was reached. Consulting others is a really important part of this process. In the absence of the person making a decision for themselves you, as family or friend are the next person who is most likely to be able to advise what the individual who lacks capacity wanted. This means they must talk to you! We have seen too many situations where professionals have chosen to ignore or not even invite family and those involved in a person's care to a best interest decision making meeting. If you are heavily involved in a person's life it does not matter whether the decision being made is financial or welfare you should be spoken to. The decision about the individual and what they would want not what is best for those around them or what the reasonable person would want. There is a formal meeting process which must be followed for a best interest meeting. There is a chair of the meeting, a decision maker, minutes are taken and conclusions are reached. Discussions, whether heated or not, are had, suggestions are debated and argued through. Pros and cons of situations are considered until an agreement is reached. I Decisions could be about medical treatment for someone living with dementia, choosing a care home or managing finances. Who Makes the Decision? Depending on the context, the decision-maker could be: A healthcare professional (e.g., doctor, nurse) A social worker A legal guardian or attorney under a Lasting Power of Attorney (LPA) A Court of Protection-appointed deputy In the absence of agreement or if there are concerns about a decision the Court of Protection will be asked to exercise its decision making authority. Best Interest Decisions are about more than just safety. They are about dignity, respect, and person-centred care. By following a clear, inclusive, and transparent process, professionals can ensure that decisions made on behalf of others are both lawful and compassionate. However, these are not always carried out as they should be. If you have an upcoming best interest decision meeting or have attended one and did not feel you were heard give us a call for some support and advice.

If you or a loved one receives care and support that’s funded by the local authority, this little slice of money is what you’re allowed to keep each week. It’s not much but it’s yours. What is your personal allowance? When your local council is helping to fund your care, whether you’re in a residential home or nursing care, most of your income (pensions, benefits, etc.) goes towards paying for the care If everything was to be used for care how would you pay for the little things that are really important. This is why the government understands that you still need money for these items. So they set aside a portion of your income that you are allowed to keep. That’s your Personal Expenses Allowance (PEA) in England. In 2025/2026, the PEA amount is: £30.65 per week It’s not a lot, but it’s meant to help you buy everyday personal items like: Toiletries Clothes Haircuts Magazines Birthday cards Treats (because who doesn’t need a bar of chocolate now and again?) This money is yours. Not the care home's, not the council’s. Who gets Personal Allowance? You get a personal allowance if: You live in a care home Your care is partly or fully funded by the local authority Your finances are below the means-tested threshold for paying for your own care (currently £23,250 in England) If you’re self-funding your care (i.e. paying from your own pocket), then you manage all your own money the personal allowance doesn’t apply in quite the same way. What If I Have a Power of Attorney or Deputy? If someone is acting as your attorney or deputy (perhaps because you can’t manage your own money), then they should make sure you still get access to your weekly personal allowance. That money should be used for your benefit only not to top up care costs or cover extras for anyone else. Common Problem: “The Care Home Keeps It!” This shouldn't happen but can. When you pay for your care you should only pay for the care you receive either directly to the care home or the local authority if they are funding your care. You only need pay what you are billed for, nothing else. Sometimes the care home will ask to keep personal allowances to cover incidental costs like hairdressing, chiropody, toiletries but you should make sure that your PEA is held in a separate account and only used for these things. Care homes are not allowed to take your personal allowance to supplement your care costs. If you or your loved one isn’t seeing or using the PEA per week, it’s worth asking: Where is the money going? Who’s managing it? Is it being spent appropriately — and with your input? It’s okay to ask for receipts or a breakdown of how it’s being used. Can the Personal Allowance Be Increased? In exceptional cases, yes. For example, if someone has religious or cultural needs that cost more (e.g. special dietary items or clothing), you can ask the local authority to provide for a higher personal allowance, but you’ll need to explain why, and it’s considered case by case. We talk a lot about pounds and pennies when it comes to care fees. But personal allowance? That’s about dignity. It’s about still being able to choose your favourite shampoo. Or send your granddaughter a birthday card. Or buy the newspaper you’ve read every Sunday for 30 years. It's the little things that help us stay connected to who we are. So, if you’re managing care for a loved one or navigating the system yourself don’t overlook this tiny pot of money. It may be small, but it makes a big difference. If you need any help in navigating the care system please give us a call for 15 minutes of free advice which could make all the difference!

If your child was born between 1 September 2022 and 2 January 2011 they were probably started a child trust fund by the government. A fantastic idea introduced to help young people get a head start with saving. Although there were started with a little bit some can have hundreds or even thousands of pounds in them by the time a child reaches eighteen. And it was a fantastic idea, in theory! But for young people with capacity issues resulting from learning disabilities or other conditions that affect decision making it these trust funds have created a bit of a mess, and despite requests to make access in these circumstances easier, nothing has really happened. Accessing the child trust fund at eighteen When a young person turns eighteen the child trust fund becomes theirs and only they can access the money. But if that young person lacks capacity they cannot deal with the paperwork or sign forms to do this. Most banks, building societies and fund providers will not release funds to parents or carers, even though they are the ones who have been managing the account since birth! The providers will want something called a deputyship order from the Court of Protection. What is a Court of Protection order? This is a legal document that gives someone the authority to manage the financial affairs of a person who lacks capacity when they are unable to manage themselves. It is, most of the time, a sensible thing to have, but if you just need the order to access the child trust fund it is like using a sledgehammer to crack a nut! The process to obtain the Court order is a lengthy process which requires the completion of a number of forms, a mental capacity assessment, cost and time, not to mention the stress that accompanies the application. After many complains and petitions from frustrated parents and charities the government has explored simplifying the process but at the time of writing this article, you still need a Court of Protection order. My advice I totally agree that this is a complete nightmare and a simpler solution should have been found, or even considered in when the fantastic idea was thought of! But here we are. So, let's look at this practically. You may not just need authority to access the child trust unable to access child trust fund fund. If you have a bank account for your child, or they inherit some money in the future, or you need to sign tenancy agreements or make benefit claims authority to make financial decisions would be a really sensible thing to have. Therefore, don't just ask the Court of Protection to make a one off order to allow access to the child trust fund account ask for a financial deputyship order. This will then allow a nominated person to have authority to deal with most financial matters which could arise during the lifetime of the person owning the child trust fund. Don't wait until your child is eighteen to do this. You can get a financial deputyship order for a child under the age of eighteen if their capacity is a permanent state. Argo can help guide you through the process of applying to the Court of Protection for a deputyship order for your child. Give us a call to chat some more.

Oh that question! I think it is the one I am asked more than any other! It is loaded with sensitivity, apprehension and misunderstanding. Not to mean the worry, emotion and fear that also arises. What are we deciding? Before we look at who decides we need to be clear on what it is we are deciding. Capacity is the ability to understand information relevant to a decision which needs to be made, the ability to weigh that information up, and retain the information for long enough to process what has been heard and seen. It also involves the ability to communicate the decision which has been made. If you can do all of these things you have capacity! When do I have capacity? Capacity isn't all or nothing. It's not black and white. More often it is that murky grey area in the middle which is constantly changing and shifting according to what is going on in your world. You might have capacity to decide whether you want cheese and tomato in your sandwich or cheese and pickle but may not have capacity to make a complex business decision involving a company merger worth millions. You may lack capacity if you are unwell or haven't had enough sleep. There are so many things that go into the capacity pot. It's about the decision you need to make, there and then, in that specific moment. It's about giving you the time and space you need to process information. Who decides if I have capacity? A doctor is not the person who decides whether you have capacity or not. It may be a doctor if it involves a medical decision. It could be a social worker for care decisions. It could be a lawyer (like me) for wills or powers of attorney. It could be a family member who you have appointed to act as your attorney or deputy. But, these people cannot just simply go off an make decisions without governance or supervision. There are tests they must follow for certain decisions but generally, every day, they must follow the legal framework set out in the Mental Capacity Act 2005 and the Mental Capacity Act 2005 Code of Practice. I have included both links to these below. If, for example you visit me to make a will I have to see whether you:- understand what a will is know what assets and liabilities you own understand you may want to leave things to and their relationship to you understand what could happen if you leave people out of your will and ensure that no-one is forcing you to make the will. If I do not think you understand these issues then I can say that I do not believe you can make a will. What happens if I don't have capacity? If you don't have capacity this is when your attorney or deputy will step in and act for you but this may be a process of gradual involvement according to where your capacity levels are. A deputy or an attorney cannot simply do as they wish they have to act in your best interest, always give you every opportunity to make a decision for yourself, act in a way which is the least restrictive for you and ensure that any decision they make is backed by evidence and thought out reasoning. If you do not have capacity the best interest decision making process kicks in and you may find that people who don't know you are responsible for making decisions about you. Not a situation any of us wish to find ourselves in. What to do next? Making complex decisions Protecting yourself for the possibility of lack of capacity is the most important thing you can do for you and your family (as well as make your will). Capacity is about dignity. It's about making sure you have a voice when you may be unable to make decisions about yourself. If you need to have a difficult conversation about your capacity, how to protect it for the future and what to say to your family Argo is about to help with this. If you are worried about your capacity or someone you love. Argo is here to help with that. Reach out. Ask questions and get support. Capacity is not a line in the sane; it's a moment, a conversation and, sometimes, a bit of courage! https://www.legislation.gov.uk/ukpga/2005/9/contents https://assets.publishing.service.gov.uk/media/5f6cc6138fa8f541f6763295/Mental-capacity-act-code-of-practice.pdf

When the subject of care charges comes up in conversation I am often asked what can be done to protect assets. Understandably, families want to preserve as much as possible for future generations. But it’s important to take advice before you do anything because giving away money or property to avoid care fees could be seen as “ deprivation of assets .” What Is Deprivation of Assets? Deprivation of assets happens when someone intentionally reduces their wealth by giving away money, transferring property, or selling something for less than it’s worth to avoid paying for care. This might include: Giving your home to your children Transferring large sums of money to relatives or trusts Buying expensive gifts Selling assets below market value If a local authority believes this was done deliberately to avoid care fees, they may treat the asset as if it’s still yours when they assess your eligibility for financial help. That means you might still be expected to contribute to your care costs as though you hadn’t given the asset away. How Do Local Authorities Decide? It’s all about intent and timing. The local authority will consider: Why the asset was transferred. Was it to avoid care fees or for another valid reason? When the transfer happened. Was it at a time when you could reasonably have expected you’d need care? For example, if someone gave away their home five years ago while they were healthy and living independently, and there was no indication of needing care, it may not be considered deprivation. But if the gift was made after a diagnosis or at a time when care was foreseeable, that’s a red flag. What Can Happen if Deprivation Is Suspected? If the local authority concludes that deprivation of assets has occurred, they can: Include the value of the asset in your financial assessment, even though you no longer own it Refuse financial support until your deemed capital drops below the threshold In some cases, ask the recipient of the asset to contribute towards your care costs (though this is complex and not always enforceable) Are There Legitimate Ways to Plan Ahead? There are may ways to plan for the future but it has to be done correctly. If you see a company promising to protect your assets so you never need to pay for care you need to be very careful before you get involved with any scheme they offer you. Be guided by the saying "if things look to good to be true, they usually are!" To get the best advice I would recommend: Seeking advice from a specialist lawyer or financial adviser before making any major decisions Setting up lasting powers of attorney to help with future decision-making Exploring legitimate estate planning and trusts, but only where appropriate and not solely to avoid care fees Looking into care annuities   or other financial products that can help cover future care costs Gifting of assets It’s completely understandable to want to protect your home and savings. But trying to move assets out of your name to dodge care home fees can backfire financially and legally. The rules around deprivation of assets are complex and case-specific, so professional advice is always your best first step. Whether you’re planning ahead or already navigating care costs, knowing the rules can save you from a lot of stress and unintended consequences. Honesty, transparency, and timely planning are key and this is what the Argo team are best at!

When you are trying to choose a care home for mum or dad and everything is going a bit too fast, the last thing you need to do is have a conversation about third party top-ups when you have no idea what they are. As I always like to make sure you have the information in your memory bank for when it is needed here is an explanation! When someone needs to move into a care home they will either fully fund the cost of their care from their savings or the local authority will help to fund that care. Care homes set their monthly fees according to what it costs to provide care for an individual. The local authority does not always agree to pay these fees however. When an individual moves needs care which is funded by the local authority the local authority will agree to cover the cost but only up to a certain amount. This is called the “indicative rate.” Any care home will tell you that the indicative rate set by the local authority is not a real reflection of the cost of care for someone in a care home so there is often a negotiation process which takes place to determine the amount that care will cost. Now here’s the thing: some care homes often cost more than the indicative rate. It may be they have a sea view, extra support, or simply better biscuits at tea time. If your chosen home charges more than what the council is willing to pay, someone has to cover the difference. That’s the top-up; the extra cost that bridges the gap between what the council pays and what the care home charges. Who can pay it? Here’s where it gets a little complicated: You can’t pay your own top-up if your care is funded by the council. That’s the rule. The top-up must be paid by someone else, usually a family member, a friend, or sometimes a charity. That’s why it’s called a “third-party” top-up. And it’s not a one-off payment. It’s a regular commitment, often weekly or monthly, and it can last for years. It may not always stay the same amount if the care home increases its fees for example. Would you want to agree to pay a mortgage that had no end date and no cap on how much it would cost? You don't want to agree to pay a third-party top-up either! You can ask the local authority to refer their financial assessment back to panel to see if they will increase the amount they are prepared to fund. You can argue that a particular home meets the specific needs of the individual requiring care and that no other home can do this. You might be successful with this argument and receive the funding the care home requires to meet its fees. A real life example Let’s say Margaret’s mum, Jean, is going into care. The council agrees to pay £700 a week, but the home they love charges £850. That extra £150 has to be paid by someone else; in this case, Margaret. She’s now signed a third-party top-up agreement with the council and takes on the responsibility. If she ever misses a payment, Jean might have to move to a different home that fits the council’s budget. Imagine the stress that could cause for both of them. Important things to know before you say yes to a third party top-up If you’re thinking of agreeing to a top-up, here are some pointers: It’s a legal agreement – You’ll usually sign a contract with the council. Read it. Ask questions. Don’t feel rushed. It can go up – Care home fees may increase over time. Make sure you know whether your top-up will rise too and by how much. It’s a long-term commitment – It’s important to consider whether you can afford the top-up not just now, but in a year, or even five. Talk to the Council – They should offer at least one care home that doesn’t require a top-up. If they don’t, challenge it. Life happens – If your circumstances change and you can’t continue paying, let the council know straight away. There may be options, but early conversations are always better. My advice? Top-ups can be the right choice, for the right reasons and the right families. Sometimes, peace of mind or comfort for a loved one is absolutely worth it. But I’ve also seen people feel pressured, confused, or stretched too thin by top-up commitments they didn’t fully understand. That’s why conversations matter. A little advice at the right time can prevent big headaches later. You would take advice before signing mortgage documents or a legally binding contract. Do the same with top-up agreements. That's what we are here for!

A potential u-turn for winter fuel payments has just been signalled by the Prime Minister in Prime Minister Questions this morning. Are we about to see a change of heart? Sir Kier Starmer said that the Labour Government wants to make sure that more pensioners are eligible for the winter fuel allowance as the economy is improving. This is to be part of a "fiscal event". More details are to follow in the Autumn Budget. Listen to what he said at https://www.bbc.co.uk/news/live/cr4zz1d6y75t There was no detail in the statement but this could mean that pensioners, other than those receiving pension credit, could be eligible for winter fuel payments in the future. The Work and Pensions Secretary Liz Kendall said that they believed, having reviewed their figures in November 2024, that a potential 50,000 pensioners would be in relative poverty as a result of the cut for the 2024, 2025, 2026 and 2027 years. These cuts could be offset by an increase in claims for pension credit for those who had not thought about applying before. The true extent of this cut would not be seen for a number of months whilst claims were made, approved or refused. From the latest February 2025 figures 117,800 pension credit applications have been made which is an increase in 64% on the same period last year. Have you checked whether you are eligible for pension credit? Here is the link to see if you are:- https://www.gov.uk/pension-credit if you need some help in filling in the application give our friends at Wrinkly CIC a call on 0800 36 88 377 who will help you complete your application and claim for other benefits of visit their website at https://www.wrinklycic.org/ keeping warm in winter

Signing a deferred payment agreement I often have to talk to clients who are navigating care fees about the tough decisions, this includes what happens to your home if you go into care. When someone you love needs care, everything feels like it’s moving too fast. Decisions are coming thick and fast so the last thing you need is pressure to make big, irreversible decisions about the family home. So… what is a Deferred Payment Agreement? In plain English: a Deferred Payment Agreement (or DPA) is an arrangement with your local authority that allows you to delay paying for your care until a later date. It means that selling a house immediately can be postponed when a move into a care home happens. Think of it like a back to front mortgage. Your mortgage company (the local authority) give you money to pay care fees. You pay the mortgage back after you die or if you sell the house. Simple! Why do people choose a DPA? A DPA is an alternative to selling your home under pressure. It gives you time to think to explore other funding options. The family home is often loaded with memories and history and often families do not wish to sell. The property market may have dropped significantly due to economic issues which means that the house would lose a considerable amount of money if sold right then. You may be able to rent the property to cover care fees with other income that is received by the person needing care. There are a whole list of reasons why a DPA may be appropriate for your circumstances. Who can get a DPA? Not everyone qualifies automatically but if:- someone moves into a care home permanently someone owns their own home someone has savings below £23,250 (excluding the value of the home) someone doesn’t have a spouse or dependent still living in the home and the property has enough equity in it then your local authority must offer you a Deferred Payment Agreement. How does it actually work? Once the agreement is in place: The local authority pays the care home fees The amount builds up like a loan with interest The home remains unsold during lifetime, unless you choose to sell it When the property is sold the council gets repaid from the sale proceeds Are there any down sides? Unfortunately there are. DPAs are no longer interest or charge free. Interest does apply, and there may be admin fee s . The loan can only go up to a certain percentage of the property’s value (usually around 70–80%). You’ll need to keep the home insured and well maintained while the DPA is in place. And you’ll need proper legal advice before signing anything as the paperwork is not pleasant! But, don't let the downsides stop you from considering this as a way to fund care fees. As part of the care advice Argo provides we can walk you through the DPA process so you can fully understand what you are agreeing to before you sign. We are here to help!

And as with many things in life the answer is: it depends ! Why is everyone worried about this? Well, here’s the thing. Care is expensive. Like, eye-wateringly expensive. If you move into a care home, the local authority will do a financial assessment to work out how much you’ll need to pay towards your care and whether they’ll help at all. They’ll look at: Your income (pensions, benefits, etc.) Your savings And the value of your home That’s where the worry comes in. The £23,250 threshold As of now (2025), if you have more than £23,250  in assets (including your property), you’ll likely have to pay for your own care in full. This is called self-funding. Your house could be included in this assessment but only in some situations. Will my home definitely be counted? do I have to sell my home to pay care fees? Not necessarily. It depends on whether anyone is still living there. If one of the following people still lives in your home, your property is usually excluded from the financial assessment: ✅ Your spouse or civil partner ✅ A relative aged 60 or over ✅ A child under 18 you’re responsible for ✅ A disabled relative ✅ A former partner who is a lone parent So if you’ve still got a loved one living at home, the local authority shouldn’t force a sale. But if you live alone and move permanently into care, your house may well be subject to assessment. Do I have to sell it right away? No. There’s something called a Deferred Payment Agreement (DPA). Its like a loan from the local authority. Until very recently it used to be interest free but this is not longer the case. The local authority will charge interest and will often charge a fee for the privilege of setting up a DPA. The local authority will cover your care costs upfront and recoup them later, usually from the sale of your home after you pass away. If, for any reason your home is sold before you die the local authority will expect repayment upon sale. You will then continue to pay for your care with the balance of money you have from the sale. To make sure they get paid the local authority will secure the loan secured against your home. This gives your family time and space to process and make decisions. Can I give my house away to avoid paying care? The short answer is: no, not safely. Deliberately giving away your home (or other assets) to avoid care fees is seen as “ deprivation of assets ” . Councils can and do  investigate. If the local authority think you’ve deliberately given an asset away to get around the rules and avoid paying for care, they can still treat you as if you own the property and refuse to help with funding. So please, don’t try the “just pop it in my daughter’s name” exercise without talking to someone who knows what they’re doing. What can I do about care? This is where you need to get proactive:- Make a Will  A clear, up-to-date will gives you control and helps protect your family. Explore Property Trusts  In certain cases, including a trust in your will can help protect your share of the home for your children or partner, especially in blended families or second marriages. These are very complicated things so please don't get taken in by a glossy brochure and glass of wine accompanied by promises to prevent you from paying care fees. There are lots of companies out there which really don't know what they are doing, and try to sell products which claim to do this. Don't be taken in! Set up a Lasting Power of Attorney  so someone you trust can make decisions if you can’t, including big ones about your finances and care. Get personal advice  No two families are the same, and care planning is not one-size-fits-all. You need to speak about your specific circumstances. We know the idea of selling your home is emotional. It's not just bricks and mortar. It's your safe place, your history, your memories. There are ways to plan. With clear advice and a bit of care, you can make informed decisions that protect your dignity, your family, and the life you’ve built. At Argo we pride ourselves on dealing with the practical, the personal, and the emotional stuff to make these difficult conversations easier. It's what we do well!

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, c are 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. 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 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!

Over the last few weeks we have looked at the important terms and phrases you will come across when making your will. This terminology is important to make sure your will really does say what you want it to. I thought we would have a look now at some of the other things which are important when making a will. So... What Is Inheritance Tax? Inheritance tax is the tax that no-one wants to pay. I often hear "I've paid tax all my life so I don't want to give the Government any more when I die". Essentially, inheritance tax is a tax on the value of your estate (that’s all your money, property, and belongings) after you die. But don't panic, not everyone pays inheritance tax .  In fact, many estates fall under the threshold, and there are loads of reliefs and exemptions. It’s all about good planning, and that's what Argo is here to help with. The Magic Number: £325,000 Right now (as of 2025), you can leave up to £325,000  to your family and friends without any inheritance tax at all. This is called your nil-rate band. In simple terms, you can own assets up to the value of £325,000 with no charge to inheritance tax. Above that the taxman wants a slice. That’s 40% on anything over the threshold. Let's look at an example: If your estate is worth £400,000, the first £325,000 is tax-free. The remaining £75,000 is taxed at 40%. So, your estate could pay £30,000 in tax. But that's if you do nothing, do not claim further reliefs and exemptions and you do not plan. The Family Home Boost: Residence Nil-Rate Band If you are leaving your main home to your children or grandchildren, there’s an extra allowance called the Residence Nil-Rate Band. It’s currently up to £175,000  per person but you have to claim this. So that £325,000 becomes £500,000  tax-free if your estate includes your home and it’s going to kids and grandchildren, even stepchildren (which are included for this relief). This means, if you are married or in a civil partnership, you can combine your allowances meaning you could pass on up to £1 million  tax-free. Now that sounds much better doesn't it! Common Misconceptions There are lots of conversations however that happen over a beer in the pub which need to be corrected so here goes:- 🧁 If I gift something while I’m alive, it’s tax-free.    Sort of. If you live for seven years after making a gift, it’s generally outside your estate. But if you die sooner, it might be taxed. There are also yearly gift allowances that you can make to give things away without worrying about inheritance tax, so planning matters! 🎁 My estate will pay the tax, so it’s not my problem. That's right, but emotionally? Financially? It can really impact your loved ones. And you probably don’t want a big tax bill to eat into what you’ve left for them. 📜 I made a will ten years ago. That’ll do . Life changes. So does the law. Make sure your will (and tax planning) reflects your current situation. That’s where someone like me comes in. 🧁I will give my house to my children. If you give your home to your children but continue to live in it the house is still included in your estate because you have reserved a benefit in the gift ie you have retained the right to live in the house. What Can You Do? Everything becomes manageable with a conversation. There are things you can do to protect your estate from inheritance tax: ✨ Make a Will. Clearly state your wishes. A properly drafted will can make use of exemptions and avoid unnecessary tax. ✨ Plan Ahead. The earlier you think about this, the more options you have. Gifts, trusts, charitable legacies. It’s all there for you to use. ✨ Talk to Someone Human. Don't take the easy option and prepare an online will or do not take advice. Argo meets clients face-to-face, takes time to understand your situation and gives you advice that is right for you. Final Thoughts From us With a bit of forward planning over a coffee, you can make sure more of your hard-earned wealth goes to the people you love, not straight to HMRC. If you're not sure where to start, we are here. No scary suits, no stuffy boardrooms, just a chat over coffee.