How do you pay for your care and protect your capital?
This is the final part of Time to Talk (Part 1, Part 2). So having had a family discussion about the issues and options, I hope you will agree that the best choice is being able to remain living in your own home. It’s a myth that the cost of care at home is more expensive than moving to a residential home. Whatever your financial situation, the following might be helpful:
Deposit account ⇒ Causes erosion of capital
Fixed term account ⇒ Lack of access
Existing Investments ⇒ Are they suitable?
- Equity Release enables a lump sum or a monthly amount to be paid into your bank account by releasing some of the capital in your house. It is also exempt from Inheritance Tax.
- An Immediate Needs Annuity which is a single one off premium, purchases a Care Plan that will guarantee to pay your monthly shortfall free of tax for a person’s lifetime. This means that your remaining capital is protected. Typically, the return on capital from these schemes is between 18% and in excess of 30%.
- It is always worth getting a Care Needs Assessment as the local authority may be able to make a contribution.
Lasting Power of Attorney
Before you do anything please ensure you address this topic as it is of vital importance. It ensures that important decisions can be made on someone else’s behalf, should they be unable to do so for health reasons. Without such a document personal control of family finances can be lost and the Court of Protection becomes involved.
We passionately believe that people wishing to remain living in their own homes for as long as possible, should be given all the choices and options as well as support, but you need to plan.
Finding out what you may be entitled to can be complicated and confusing which is why we are an affiliate member of The Society of Later Life Advisers (SOLLA). As a not for profit organisation recognised by the government, they can provide the experts who are specifically trained in funding elderly care at home.
If you would like to discuss the many options available, please contact us on 01829 260280 to make an appointment.
Campaigning to help people remain living in their own homes
We are a home care agency based in Bunbury, Cheshire helping families predominantly across the North West and North Wales, although we are nation-wide.
Bunbury Care Agency is a member of the UKHCA (United Kingdom Home Care Association) and an associate member of SOLLA (Society of Later Life Advisers). SOLLA is the only association in the UK that can provide accredited financial consultants who can advise and assist people with the funding of elderly care.