Later Life Planning

05 January 2016

05 January 2016 by MHA MacIntyre Hudson

Being faced with the prospect of paying for long term care can be very stressful, emotional and worrying for families.  State help is very limited and the cost of care is increasing. 

If someone requiring care has assets over £23,250 they will be classed as self funding and will have to pay for their own care.  Unfortunately, generally the difference in income compared to the cost of care is vast and assets are quickly used up if no action is taken to look at alternative options to pay for care.  By taking Independent Financial Advice at the early stages families will be able to relax in the knowledge that the financial affairs are arranged in accordance with specific wishes and the assets available will last the person requiring care the remainder of their lives, more importantly your loved one will be able to remain in a care home of their choice without the fear of being ‘thrown out’ or the threat of a family top up.

The introduction of the Care Act 2014 was bringing about changes in funding for care particularly in relation to the care cap of £72,000 and means tested threshold of £118,000.  This has now been postponed until 2020 but unfortunately for the majority of people it would not have made any difference to them at all, in fact they could have been worse off!

When someone goes into care it is an emotional time for the family and generally no one around to help and guide them in understanding the system, care costs, ensure they are receiving all the state benefits allowable and any local authority funding to which they may be entitled.  It is of utmost importance that clients reduce the risk of running out of money and protect the remaining capital to ensure they can remain in the care home of their choice or at home for the remainder of their life.