Financial Advice for Care Fees by Goodman IFA, Tunbridge Wells
- Before exploring the funding options it’s essential to have a basic understanding of how the care system works so you know which benefits you can claim now and which you might be able to claim in the future. We will ensure you’re aware of what you need to know but will also encourage you to familiarise yourself with the workings of the care system.
- When looking at the various ways of funding care fees, we'll always take into account your specific requirements and wishes - meaning our recommendations will be highly personalised and bespoke. We'll communicate the options to you in clear terms and help you to make an informed decision.
- Implementation of the chosen strategy is about ensuring you get the best terms, organising the paperwork and making sure everything is set up correctly. Incorrect implementation could cause delays and have cost implications in the future.
- Where investments are being arranged as part of the funding strategy, our Investment Service includes advice on portfolio construction and tax planning. We'll also help you to keep your investments on track.
- Our Long Term Care calculator will help you get an idea of care costs but we can also point you towards websites to help with your research when choosing a care provider. We have contacts with a number of local care providers which might also prove helpful when making your choice.
And because we are truly independent we always advise on the full range of products and options. Take a closer look at how we can help.
Understanding The Care System
The UK care system is notoriously complicated.
There's much confusion around what financial assistance is and isn’t available from either the Local Authority (LA) or the State.
New funding rules were due to be introduced in April 2016 under the second part of the Care Act 2014. The significant changes included higher means test levels and the introduction of a £72,000 cap on care costs. However, in July 2015, the Government announced that the changes would be delayed until 2020.
Most of us will have assets in excess of the current means test capital level of £23,250 and will, at least initially, have to self-fund care fees. Contrary to popular belief, it's not possible simply to give assets away to family members so that LA assistance can be claimed. However, some benefits can be claimed that are currently not means tested. A good example is Attendance Allowance, payable to those who are receiving care. Click here for further information or if you wish to claim Attendance Allowance.
We will explain in plain English the rules that are relevant to your own situation and ensure that you're receiving the benefits you're entitled to receive – where you aren't, we'll advise how you can claim them. If you need to pay for care and your capital is below £23,250 the LA will make an assessment to see how much you have to pay towards your fees and what assistance they will provide.
In certain cases the NHS may fund care fees. NHS Continuing Healthcare is a package of continuing care provided outside hospital, arranged and funded solely by the NHS. This is for people with a complex medical condition that requires a lot of care and support or those who need highly specialised nursing support. Click here for details about NHS Continuing Healthcare.
Exploring The Funding Options
One size doesn’t fit all!
The main objective is to find a way to meet the cost of care fees so that you can always receive the care you require in the place of your choice without worrying about running out of money. Of course, this isn't always possible but there are certain steps that can be taken to make your capital go further.
Your financial arrangements can be organised in a variety of ways and often the best approach can be to use a combination of options.
In many cases people express a desire to leave an inheritance to their loved ones as well as being able to pay for their care for the rest of their lives. We’ll always take this into account when considering the options and will ensure that the arrangements are simple to administer and tax efficient.
We see our role as making you aware of the various options, explaining clearly how they work and helping you to reach an informed decision that you feel happy with.
Implementing The Chosen Strategy
It's vital that the arrangements are set up correctly to avoid any future problems.
Having decided on a strategy to meet the cost of care fees and any other objectives, the next step will be to implement the arrangements.
As we're completely independent of any financial institution we can find the most competitive terms for your chosen arrangements and assist you with the completion of the necessary paperwork.
We'll then check that the arrangements are set up correctly to avoid any potential problems in the future.
We offer a variety of review services that can be tailored to your particular circumstances and wishes. Reviewing your arrangements is important because your situation could change and the financial world is constantly changing so you need to ensure your arrangements remain suitable and on track.
Care Cost Calculators
Why not spend a few minutes exploring the care cost calculators?
Click here for a link to some useful care cost calculators to give you an idea of the cost of funding care fees, based on the current funding rules.
This is only intended to give you some guidance and, clearly, your financial affairs need to be looked at carefully before you reach any firm conclusions. However, we hope you find this tool helpful.