For most families, the subject of care doesn’t become real until it happens. A fall, a diagnosis, or a gradual decline in health can turn life upside down overnight — and the reality of care costs soon follows.
Right now, the average cost of residential care in the UK is around £1,500 per week — over £78,000 per year. If nursing care is required, costs can be even higher. And while the figures are daunting, the real impact is felt when you realise how quickly these costs can erode a lifetime of savings, investments, and even the family home.
Why So Many Lose Their Estate to Care Costs
Under current rules, if your assets are worth more than £23,250, you are expected to pay for your own care. This means your home, savings, and investments may all be assessed and used to fund fees.
Many people assume this will never happen to them — until they face the reality of needing care for several years. Without proper planning, it’s all too easy for a large part of the estate to disappear in fees, leaving little or nothing for the next generation.
There Is Another Way – Funding Care Without Losing Everything
At Foresight, we believe care planning should be a standard part of every estate plan — not an afterthought. We combine ethical funding solutions with asset protection strategies to ensure you can access the care you need without losing the wealth you’ve worked so hard to build.
Our approach often blends the use of trusts to protect property and capital with carefully structured investments via our sister company, Property Investor Partnership (PIP).
When care costs arise, trustees — or attorneys acting under a Lasting Power of Attorney — are not limited to renting out a property (which can involve ongoing maintenance, agent fees, and tenant issues). Instead, they can sell the property and invest the proceeds to generate a reliable income stream, covering the care shortfall without depleting the capital.
Example scenario:
- Trust property & cash: £570,000
- Settlor’s annual care costs: £60,000
- Settlor’s personal income: £25,000
- Annual shortfall: £35,000
By investing £500,000 into specialist care-focused investments, trustees could produce around £45,000 per year in income. This covers the shortfall while leaving the capital intact for the estate and beneficiaries.
These investments are designed to produce a reliable income stream that can be used to cover care costs without depleting the capital. This means:
• Quality care is funded when needed.
• The estate remains protected for your family.
• Financial independence is preserved for as long as possible.
Why Our Approach Works
Traditional care planning advice often focuses solely on gifting assets or placing property into trust — both valuable tools, but often incomplete on their own. Our method ensures that:
- There is always an income stream available to cover care costs.
- The capital remains intact, continuing to grow or be preserved for the next generation.
- Trustees or attorneys have the flexibility to adapt to changing needs.
It’s an ethical, transparent, and protective way to fund care without sacrificing your legacy.
Final Thought
Care may become part of everyday life for you or a loved one — but losing your estate to pay for it doesn’t have to be. With the right planning, you can secure quality care and protect your family’s future.