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In the UK, the cost of care can be staggeringly high. The average cost of residential care stands at average of £1,160 a week. Nursing care is typically more expensive, at £1,410 per week. Homeowners can be especially worried about going to care, fearing that their home may need to be sold to cover the fees.
Another worry is inheritance. If your wealth is wiped out by care fees, will you have enough left to pass down a meaningful legacy to your loved ones when you die? Things get even more complicated if you live abroad. What kind of local social care provision exists? How is it funded, and what access do you have as a foreign national?
Below, our short guide explores some of these key questions in more detail for British expats. We hope these insights are useful. If you want to discuss your financial plan with a member of our team, please get in touch to arrange a no-obligation financial consultation at our expense:
+34 966 460 407
info@scottsdale.eu
What is later life care?
Later life care is a service mainly targeted at older people who need assistance with day-to-day living, often due to declining health. If you need help with clothing and washing, for instance, then a professional nurse might help you – either in your home or in a dedicated residence. This is similar to social care, although this is a broader term that also encompasses younger people (e.g., those with disabilities or learning needs).
What types of care are there?
In the UK, there are many different types of care. There are very specialised options for dedicated needs, such as dementia care and convalescent/post-operative care. More broadly, however, there are two broad types which others tend to fall into: home and residential care.
The first type occurs primarily in the elderly person’s home. This might take the form of a “live-in care service” (where the carer lives with you) or a home care service where a professional visits you to assist with tasks. Residential care, by contrast, involves relocating the elderly person to a dedicated facility. This might be more suitable for those requiring more intensive care in a residential/nursing home.
Do I get help paying for care?
In the UK, the previous government planned to introduce a social care “cap,” which would (theoretically) prevent any individual from ever paying more than £86,000 on care across their lifetime. However, the new Labour government has scrapped this plan.
The general rule is that anyone living in England or Wales can apply for partial/full funding if their assets are below £23,250. In October 2025, this threshold is set to rise to £100,000. This includes the value of your UK home unless you still have a dependent or spouse living there. Be careful not to deliberately reduce your assets to try and get under the threshold. The government is likely to view this as a “Deprivation of Assets” during their financial assessment.
What if I live abroad?
If you live overseas, it may be difficult to access care back in the UK. You need to prove “ordinary residence” to have a chance of accessing local authority funding. It may help to move in with (or near to) family or friends if you repatriate, at least for the initial period. This can help to prove your intention to remain where you are living when applying for the needs assessment.
Bear in mind that care services in other countries may not reflect the landscape in the UK. In southern Europe, for instance, many cultures have a stronger tradition of moving elderly relatives in with younger family members for care. This can limit the options for British expats who may have fewer family ties in their country of residence. The lower demand for professional care services can also limit their availability, making them more expensive.
Planning for care
With all of this said, how can you balance the twin goals of paying for care whilst still leaving a meaningful inheritance to your loved ones? The best step is to plan ahead as early as possible. If you believe you may need care in the next 20 years, consider seeking advice soon. This gives you time to build up and organise your finances (e.g. ring-fencing some of your pension) to prepare for potential future care costs.
Another option is to consider an “immediate needs” annuity, which pays (from your pension) straight to a care home provider. There can be tax benefits to doing this. However, expats should note that annuity companies may be less willing to pay to overseas care homes. Be careful about putting assets into a trust before going into care (again, a UK local authority may regard this as a deprivation of assets). Seek financial advice for more ideas and information.
Invitation
If you are interested in discussing your own financial plan or inheritance tax strategy with us, please get in touch to arrange a no-commitment financial consultation at our expense:
+34 966 460 407
info@scottsdale.eu