Many elderly people who need long term care are reluctant to leave the familiar surroundings of their home, full of memories and possessions. Some are forced to spend many lonely hours, without any companionship or assistance. Many are subjected to poor care services, neglect and/or abuse. These are vulnerable people, who should be given the level of care they need, so they can retain their dignity and be happy in the twilight of their lives.

Our experience in advising the elderly and their families is that it is common for them to feel they have no choice of who provides care and where it can be received. It is somehow accepted that low standards of care at home is the norm and you simply have to put up with it and continue to pay high fees. The average hourly rate for care at home in England is £14 per hour and this can put a strain on the capital, particularly in difficult economic times.

The fact is, those who are self funding their care (anyone with assets over £23,000 – England 2009/10) have the choice of who provides their care. Anyone who is being funded by their local authority can also choose their care provider, but family members may have to pay towards the additional costs. No-one should accept low standards of care and everyone has the right to replace poor carers with those they trust to care for them properly.

As highlighted in the Panorama programme “Britain’s Home Care Scandal” there are some companies who fall short of expected standards for carers at home and the regulator must raise the bar to ensure services improve dramatically. However, there are already excellent home care providers that we are aware of. These supply fully trained carers, many of whom live with the elderly person concerned providing them with companionship, housekeeping, social and nursing care.

We provide financial advice to those who need to fund long term care. It is even more important now that investments are not performing and interest rates are so poor that those with a little bit of capital who fund their own care obtain advice from a specialist care fees adviser. By protecting the assets from erosion, the elderly person can have total peace of mind, flexibility of who provides the care, and can retain their dignity. They may even be able to leave an inheritance for their families once they have passed away.

We have lots of useful tips and information on our website www.twcp.co.uk and you can request a free guide. The new 2009/2010 guide provides essential information on:-

Planning ahead

Local authority support

Asset disregards & deferred payment option

State benefits

NHS continuing healthcare & NHS-funded nursing care

Local authority funded cases and third party top up

Equity Release

Care at home

Selling or renting the property

Lasting and Enduring Powers of Attorney

Can you afford the care?

Deputyship and the Court of Protection

Immediate Care Plans – A solution to the problem

True stories

This is a very specialised area of advice, so don’t leave it to chance. For trusted advice when you need it most talk to us today.

When people get older and their health deteriorates, it is common that they feel they have no choice about where they receive their care.  Many are resigned to the fact that they may have to move into a care home, even though they may hate the idea and prefer to stay in their own home.

Couples who have been together for many, many years may feel they have no alternative but to live apart, when one of them requires long term care,.  This can often put pressure on the person who is not requiring care to firstly keep their partner at home for as long as possible, providing the care themselves and secondly, when it all becomes too much, to find a suitable care home and constantly travel to visit their loved one.

Placing a loved one into care can be extremely traumatic for all concerned.  Family members can feel terribly guilty and emotional, particularly if a care home is not where the elderly person wants to be.  Leaving beloved pets and personal possessions behind can also be a huge issue for the elderly moving into a care home.

Care at home could be an option for so many people, but this is often not considered.  There are many good quality providers of care in your own home and the cost is not necessarily more than a care home.  The solution could be to have a live-in carer providing companionship , housekeeping and personal care or, simple someone to come around every day to help with certain activities the elderly person is unable to do themselves.

Employing such individuals can sometimes cause a headache and can put people off receiving care at home. Many agencies do not deal with Pay as you Earn (PAYE) and National Insurance on your behalf but that is not true of all of them.

For those who are self funders (assets of more than £22,250 England) and do not have much by way of liquid capital to help pay for the care may need to consider releasing equity from their homes to fund this care.

Immediate Care Plans are a perfect way of paying for such care as it guarantees the payment each month, for as long as the person requiring care lives and payments can be set up to escalate each year to help deal with increasing care fees costs.

Call me on my freephone number to discuss your circumstances and I will be able to put you in touch with the right organisation and discuss payment options - 0800 6528232

Those who have assets over £22,250 (England - 2008/2009) will not get funding by the Social Services for their long term care.  The rules are brutal for those elderly who have saved all their lives and only have modest savings and the family home.  Most do not have enough income to pay for care and with care fees ranging from around £400 per week to over £1,000 per week, they need to use their savings and/or sell their home.  Here are some tips to help those people who are “self funders”:-

1.  Make sure you claim for Attendance Allowance for the person requiring care from the Department of Work and Pensions (DWP).  You can claim online at www.dwp.gov.uk or print off an application form.  This is not means tested and is tax free.  It could bring in either £44.85 per week or £67 per week - 2008/2009).

2.  Ensure the person needing care is receiving benefits they are entitled, such as Pension Credit.

3.  If a spouse remains in the home, claim for single person occupancy for Council Tax at your local council offices.

4.  The home is excluded for the Local Authority Means Test for the first 12 weeks of needing care.  This is not always made clear.  If the person in care has assets below £22,250 the Local Authority must fund the care for the first 12 weeks.  In certain circumstances the home is excluded from the means test beyond the first 12 weeks.

5.  If your savings are held within single premium life insurance bonds, where there are lives assured on the contract, these savings must be excluded from the Means Test.

6.  You may qualify for Fully Funded NHS Care.  This is not means tested however, you would only qualify if you need long term care following hospital treatment or because of a chronic illness or disability.

7.  If a property needs to be sold, seek specialist help with the sale.  There are companies who specialise in selling homes for the elderly in care.

8.  Seek professional advice from a financial adviser who is qualified for long term care.

9.  Consider purchasing an Immediate Care Plan.  This will pay a benefit to the care provider, tax free, for the rest of your life.  It’s a great way to cap the cost of care and provide peace of mind that you won’t run out of money.  See our other blogs for more information on Immediate Care Plans.

10.  If you haven’t already set one up, get advice on creating a Lasting Power of Attorney which will enable your loved ones to make financial decisions on your behalf if you become mentally incapable of making your own decisions.  You can also set one up to deal with your personal welfare too.

If you would like more information on what to do financially, if someone you love needs to go into care request a free copy of our Guide to Care Fees Financial Planning via our website www.twcp.co.uk.

An Immediate Care Annuity (ICA) is a special type of annuity that has been specifically designed for those that need to provide an income for life when looking to pay for the cost of care - the care can be provided either in the annuitants own home or in a care home. It is a special annuity since an income can be provided for the benefit of the individual without any liability to tax. Since the annuity is to provide a benefit to a person who is elderly and more likely to be infirm, the rates at which they are paid are high. A return of 20% plus from ones capital is not unusual - a rate not likely to be achieved by any other financial structure.

The great benefit of an ICA is that, at last, the cost of care can be calculated and peace of mind can genuinely be achieved – knowing that the cost of care can be provided for for the rest of ones life is a genuine relief. If the capital is simply put in a building society and withdrawals are made each month to pay for the cost of care there is a certain degree of uncertainty. How long is the individual going to be in care for? Is the individual going to run out of capital? Neither of these questions can be answered when one first goes into care. If capital starts to run short the Local Authority will start to pay some of the fees (the threshold is below £22,250 for England in 2008/09). This is not a position that anyone wants to get into because if the the Local Authority are contributing to the cost of care, it is the Local Authority that will have control as to where the individual receives their care.

The answer to maintaining financial independence is to purchase an immediate care annuity.

The ICA is set up so that the difference between the income (state pension, private pension, attendance allowance) and outgoings (cost of care and personal expenditure) is provided for the rest of the annuitants life. A capital lump sum is required to purchase the annuity and this puts a finite cost to the annuitants care fees. This in turn allows the annuitant to organise the remainder of their affairs .

The cost of the basic annuity will depend on four factors:

The size of the shortfall - how much additional income is needed each month

The sex of the individual – Ladies tend to live longer than Gentlemen

Age – a healthy 73 year old is expected to outlive a healthy 93 year old

Health - a healthy individual is likely to outsurvive an individual suffering from poor health of the same age

It is always adviseable to seek help from an independent adviser who can seek out the most competitive rates. Each insurance company offering this type of ICA has different underwriting criteria and the range of quotes coming back is often quite staggering.

Having decided on which company is offering the most favourable terms it is necessary to decide if any additional features want to be added to the annuity. It is possible to:

Defer the payments for any number of years – which will make the annuity cheaper

Have an increasing payment to take into account of the future rises in the cost of care – this can be linked to RPI, but is tyically increased by 5% each policy anniversary. The greater the annual increase the greater the cost of the ICP

Build in protection. If the annuity is purchased and the annuitant passes away a month later there will be no return of capital unless protection has been purchased. To protect the capital costs money but is a way looking to receive some capital back in the event of an untimely death.

To find out whether an ICA is right for you, or a loved one in care, speak to The Wealth Care Partnership on 0845 3723404. The Wealth Care Partnership offers clear, concise and independent advice helping you make the right decisions for the rights reasons.