When you are faced with the prospect of finding care for yourself, a relative or a friend you are probably feeling emotionally drained. The process of finding suitable care and sorting out the legislation, not to mention helping your loved one come to terms with the significant changes to their lifestyle can be extremely hard.
If a person’s capital and savings and/or income push them outside of the means test thresholds they will generally be responsible for the funding of their own care fees until such time as their money falls below the appropriate threshold.
With careful planning it may be possible to structure their finances in such a way that care fees can be paid indefinitely, without worry about the future or what might happen if the money runs out. Most families wish to ensure that their relative can stay in the chosen care home for the rest of their lives as well as safeguarding as much of the capital as possible.
Immediate Care plans are specifically designed to cover all or part of the cost of a person’s care fees, and can in the right circumstances provide an ideal solution. Once established the plan will pay a tax free amount at regular intervals, directly to the care provider for the rest of the person’s life.
A lump sum is required (commonly after the sale of a property) to purchase such a plan and is calculated individually on age and health.
SWCO advisers have the necessary qualifications required by the Financial Conduct Authority (FCA) to give long term care advice and are experienced in dealing with elderly-care matters.
Our Top Tips:-
1. Don’t be overly rushed
If the person is in hospital, pending discharge into a care environment, don’t be rushed into moving them before you have put the necessary steps in place.
2. Explore all the possibilities
Consider if the person would be better off in a care home or of they might be better staying in their own home with a live-in carer. Sadly, sometimes it’s the medical conditions that may dictate the care situation.
3. Hints for moving into a care home
Draw up a shortlist of potential homes and take the time to visit each. Consider a trial stay so that the person knows they still have choices. When moving permanently into their care home treat it as a positive step, send out new home announcements and if they are well enough hold a small room warming party.
4. Ensure you have legal authority to act
Drawing up the ‘lasting power of attorney’ documentation in advance can be timely and a cost effective exercise.
5. Seek specialist financial advice
Paying for care fees can often be more of a tricky subject than choosing it. We strongly recommend meeting with one of our qualified advisers who will assist guide you through the process and provide a comprehensive report detailing all of your options.
6. Ensure that all State Benefits are being claimed
Attendance allowance, Disability Living Allowance, Nursing Care Allowance and other benefits such as Pension Credit and Carers Allowance may be claimable.
7. Review or write a will
Having an up to date will is the only way a person can be sure their estate is distributed in accordance with their wishes.
8. Consider Inheritance Tax (IHT)
Our experience has shown that Immediate Care Plans or future care fee planning can be an effective way to help reduce or mitigate IHT whilst still preserving a value in the estate for passing onto beneficiaries.
9. Consider Funeral planning
Some people wish to plan their own funerals in advance while they are still relatively healthy and put in place pre-paid funeral plans.
10. Plan Ahead
If you’re sorting out the finances of a relative, friend or attorney, you are probably feeling a little fraught. But once the exercise is completed and the person in care is settled, give some thought to your own future and what might happen if you need to face a similar situation; it might be sensible for you to invest an hour or so of your time with an SWCO adviser.
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Company address: SWCO Financial Planning, The Tower, The Maltings, Hoe Lane, Ware, Herts, SG12 9LR
T: 01920 444915 E: info@swco-fp.co.uk
Registered office address: The Tower, The Maltings, Hoe Lane, Ware, Herts. SG12 9LR.
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SWCO Financial Planning is an Appointed Representative of ValidPath Ltd, which is authorised and regulated by the Financial Conduct Authority. ValidPath Ltd is entered on the Financial Services Register (www.fca.org.uk/register/) under reference 197107.
The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
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