Long or short term care

It seems like a long time ago now that I was allowed to visit my clients in care homes. I remember one care home I visited that had a “beach” with sand, sun loungers and a little cocktail bar on the middle floor. I thought that if someone I loved needed to have residential care I would want them to be in a place like this. A place where the management and staff quite clearly cared very much about the quality of life people had in the last years of their life. Places like this do not come cheaply.

Apparently there are over half a million people living in care. One hundred and thirty thousand people will move into care in the next 12 months. Around fifty eight per cent of the five hundred thousand are funding their own care. Shockingly less than twelve per cent of those people have taken any sort of advice – legal or financial before moving into care.

How can you ensure that you have the best possible care for the rest of your days? How can you have this peace of mind and yet still preserve some inheritance for your family?

Many local authorities realising that they have a huge burden in providing care for their communities are now forming partnerships with solicitors and financial advisers in order to ensure that community members receive the best possible advices about using their monies to provide for themselves and their families.

If you have a need for care whether in your own home, in a residential home or in a nursing home then please be one of the twelve per cent who takes advice. There are all sorts of things you need to think about. Are your wills up to date? Have you made lasting powers of attorney for your property and financial affairs and for your health and welfare? Are you claiming all the allowances you are entitled to? Are you making the best use of your assets to ensure that your capital lasts longer to fund your care either at home or in a residential or nursing home?

Have you thought of a long term care plan? An investment you make when the need for care arises in order to fund the shortfall between the cost of the care and your income. The income you receive from the investment is paid directly to the care provider and is tax free. If you get better it can be paid to you (but you will then have to pay income tax on the income received). It gives you the peace of mind of knowing that your care will be funded by the care plan provider for the rest of your days. You do not run the risk of the care home asking you to pack your bags and move to a different home because you have run out of money. You can continue to receive 5* care in a 5* home. You can ensure that you leave some monies over for your family.

If you would like advices about any of the above then please do contact Dixon Stewart. We are here to help.

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