The issue of long-term care costs is never far from the headlines. This aticle highlights 10 points to consider if you or a family member face the prospect of moving into a nursing home.

1. Pay for care in your home

Increasing the level of care at home can delay the need to go into a nursing home. You can expect to pay about £10 an hour to have a qualified carer – provided by your local social services department - come to your home to help with tasks such as preparing meals or dressing and undressing. It is also possible to have a carer stay overnight or even to arrange full-time care at home. Before you receive this service, your level of need will have to be assessed.

You may also be entitled to 'direct payments'. These are local council payments for anyone who has been assessed as needing help from social services and who would like to buy in services privately. The cost of care at home can also be offset by claiming Attendance Allowance (see below).
Find out about local authority care in your own home

2. Claim your allowances

Attendance Allowance is a tax-free benefit for people aged 65 or over who need help with personal care because they are physically or mentally impaired. There are two rates: £47.10 for help during the day or during the night (but not both) and £70.35 for help during both the day and night. There is also a 'low' rate of £18.65. It is paid regardless of your level of income or savings. Claim by calling the official Benefit Enquiry Line 0800 882 200 or online at www.dwp.gov.uk/eservice.

3. Speak to the charity professionals

Help the Aged's free SeniorLine telephone advice service provides welfare rights advice for older people and their carers, call 080 8800 6565. Events that lead up to the need for a family member to go into long-term care are often very stressful. The Alzheimer's Society is a valuable source of help and advice about dementia in all its forms. Call 0845 300 0336 or log on to www.alzheimers.org.uk.

4. Buy an 'instant annuity'

Some or all of the cost of full-time care may be financed by buying a type of annuity known as an immediate needs care plan. These pay much more than a standard annuity because typically people go into care when their health is poor and life expectancy is comparatively short. Only a handful of companies offer these plans at present and their rates vary. It is advisable to speak to an IFA before signing up for one of these plans.

5. Keep your savings separate

Local authorities no longer have the right to raid the savings of the husband or wife of someone who has to go into care and has asked for help paying the fees. However, to be sure of avoiding problems with joint accounts, married couples should keep their savings in separate names. See our pick of the best savings accounts.

6. Ask for regular reviews

Many of those going into a home will be eligible for a Government payment to cover the nursing element of their care, known as the NHS nursing contribution. There are three levels - low £40 a week, moderate £83 a week, and high £133 a week. With time, the extent of nursing care required may increase, so be sure to ask for a review if you think this is the case. See the Department of Health guide to NHS funded care.

7. Consider equity release

An alternative to an immediate needs care plan (see above) may be equity release. This can provide you with a lump sum or a regular monthly income by signing away some or all the value of your home. See our equity release tips.

8. Take power of attorney now

Don't wait until a family member or relative is incapable of managing their own affairs before considering power of attorney. It can make the whole process much more complicated and you may end up with the Court of Protection looking over your shoulder.

9. Beware if you want to avoid paying

Many people believe the state should pay for long-term care and some will be tempted to arrange their affairs so that they can claim they do not have enough money or assets (such as their home) to cover the cost. The authorities will come after you and your family members if they have reason to think you have deliberately set out to evade self-funding.

10. Think about inheritance tax

Legitimate IHT planning may enable you to hand some of your assets to family and friends without falling foul of the rules on disposal of assets. Our IHT guide explains what the taxman allows you to give away.