How can I meet the cost of any future care fees?
Posted on Feb 12, 2019
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Goodman Care Fees Advisers specialises in providing truly independent advice to clients, deputies and attorneys on later life financial planning issues, including how to meet the cost of care fees.
Our advisers, Neil Whitaker and Andy Kirk, have attained the Later Life Adviser Accreditation and are proud to be full members of the Society of Later Life Advisers (SOLLA).
An increasing number of financial advisers (and most banks) have chosen to restrict their advice to recommend only a few companies. Only Independent Financial Advisers, such as Goodman Care Fees Advisers, can offer impartial and unbiased advice. For Later Life advice it makes sense to use a SOLLA member, accredited and continually assessed as having the necessary knowledge and expertise in this area.
What arrangements can I make in advance to help meet the cost of any future care fees?
There are no specific insurance-based solutions available but some life assurance policies have an option whereby some or all the life cover can be paid out early if you can’t look after yourself. For most, the only solution is to accumulate capital through savings and investments, preferably making use of tax efficient savings vehicles such as ISAs and pensions.
If I do require care at home or in a residential home, how can I ensure my care fees can be funded for the rest of my life?
This depends upon your capital, income and your care costs. First, we would ensure that you’re receiving whatever you can claim from the State, for example, Attendance Allowance. Then we would explain the various funding options, pointing out the pros and cons of each.
Sometimes we can implement a strategy that would ensure care fees can be funded for life and also ring-fence assets for inheritance. Where this can’t be achieved, we would aim to use solutions to fund fees for as long as possible.
Following recent increases in our property value, we are concerned about the amount of Inheritance Tax (IHT) that will be payable on our Estate. Is there anything we can do to reduce it?
There are a number of ways that you can reduce the likely IHT but first you need to ensure that you’re both completely financially secure, taking into account possible care fees. We would assess this for you and if it’s advisable to take steps to reduce IHT, we would help you decide on the most suitable options.
The introduction of the Residence Nil Rate Band in April 2017 has reduced IHT payable on the Estate of some property owners. However, not everyone benefits from this highly complex piece of legislation and advice is required.
Finally, isn’t there an announcement on care funding due soon?
The Government’s Green Paper on adult social care has been delayed until this Autumn, possibly later. According to the Secretary of State, the delay is because Government wanted to integrate plans for social care with the new NHS plan. Don’t expect this highly contentious issue to go away. A definite case of ‘watch this space’.
No responsibility can be accepted for any action taken in respect of the above unless accompanied by advice.
If you’ve got any further questions, visit our "Financial Advice for Care Fees" page to find out more. or call us on: 01892 500600.