SW Seniors Assembly. ASHFORDS LLP. SEMINAR TITLE. DATE Speakers Andrew Carrigan Solicitor +44...
-
Upload
buddy-mosley -
Category
Documents
-
view
215 -
download
0
Transcript of SW Seniors Assembly. ASHFORDS LLP. SEMINAR TITLE. DATE Speakers Andrew Carrigan Solicitor +44...
SW Seniors Assembly
ASHFORDS LLP. SEMINAR TITLE. DATE
Speakers
Andrew Carrigan
Solicitor
+44 (0)1823 232339
Chartered Financial Planner Regional Director
+44 (0)117 905 8777
Dave Robinson
ASHFORDS LLP. SEMINAR TITLE. DATE
Care Act 2014
The most significant reform of care and support in
more than 60 years, putting people and their carers in
control of their care and support.
ASHFORDS LLP. SEMINAR TITLE. DATE
Stat Attack
900,000
900,000
W 59
M 75
50%
40% = P26% = S13% = C9% = F
ASHFORDS LLP. SEMINAR TITLE. DATE
The Care Journey
Unpaid Care at Home
Domiciliary Care
Residential Care
Nursing Care Home
Inte
nsity
of
Car
e N
eeds
Progression of Time
Average Stay
2 Years 4 months1.4m carers
40% support parent
26% support partner
13% support children
9% support friends
• 25% die within 3 months
• 50% die within 1 year three months
• 90 die within 6 years
Hospital
57% of Nursing Home admissions are from hospital45% of Residential Home
admissions are from hospital
Privately Funded until hit the ‘Care Cap’
Local Authority support dependent on means test
NHS Funding - Assessed
Average Stay
2 Years 2 months
NHS Funding - Assessed
ASHFORDS LLP. SEMINAR TITLE. DATE
Accessing Local Authority Support
• Assessment of needs
• Identification of ‘Eligible Needs’
• Develop Care Plan
• Calculation of ‘Personal Budget’
• Means Test
• Cap on Costs - ‘Limit on amount anyone will have to pay towards
care’ – Really?
ASHFORDS LLP. SEMINAR TITLE. DATE
The Care Cap in figures
• The ‘Cap’ - £72,000
• You must meet ‘Daily Living Costs’ - £230 per week
The ‘Means Test’
• Lower Capital Limit - £17,000
• Upper Capital Limit - £27,000 with ‘Property Disregard’
£118,000 without ‘Property Disregard’
• Assumed income of £1 for every £250 between lower and upper limits
ASHFORDS LLP. SEMINAR TITLE. DATE
Example - Mary
• Mary is 80 and lives at home
• Mary receives help that she
pays for herself
• The help costs £800 per
week
• On 1st April 2016 Mary asks
for an assessment of needs
• On 1st May the Local Authority
sets a Personal Budget of
£220pw
• Mary’s income is £430pw.
£200pw is deemed available
to meet care costs
• Mary has £10,000 in savings
and owns her home which is
worth £150,000
ASHFORDS LLP. SEMINAR TITLE. DATE
Example - Mary
• As long as she is at home Mary will receive £20 from the Local
Authority towards her care costs
• She will lose Attendance Allowance of £82.30
• The spend that counts towards the care cap is £220 per week
• Mary’s savings run out in 15 weeks and she goes into residential
care
ASHFORDS LLP. SEMINAR TITLE. DATE
Example - Mary
• The care home costs £650 per week. Mary’s home is sold and
£140,000 is realised. Mary loses the Local Authority funding but is
entitled to Attendance Allowance
• Costs are met through £405 from income and £245 from savings.
• Mary will take 6 years and a spend of £214,800 to hit the care cap.
• After she hits the care cap Mary will still have to pay £430 per week
towards her care costs.
ASHFORDS LLP. SEMINAR TITLE. DATE
Example - Ted
• Ted is 74 and lives at home.
His wife is his main carer.
• They pay £300pw for carer
support
• On 1st April 2016 Ted moves
into ‘Sunny View’ nursing
home
• Sunny View’s fees are £900pw
• Ted has £50,000 cash savings in
his own name. Ted and his wife
own their home and it is worth
£430,000
• On 1st August 2016 Ted’s wife
asks for his needs to be assessed
• The Local Authority assessment
sets an Independent Personal
Budget of £750pw
ASHFORDS LLP. SEMINAR TITLE. DATE
Example - Ted
• £520 of the £900pw spent on Ted’s care counts towards the ‘cap’. It
will take 2.7 years for Ted to hit the ‘cap’. The actual spend on care
will have been £186,300.
• Ted’s income is £254.90pw. Ted will ‘self-fund’ for 34 weeks after
which he will qualify for ‘means tested’ support.
• Once Ted’s savings reach £26,999 he will need to contribute £40pw
from his savings. His income is used to meet Daily Living Costs.•
• The Local Authority will pay £480pw but someone will need to pay a
£150pw top up if he is to stay at Sunny View
ASHFORDS LLP. SEMINAR TITLE. DATE
Example - Ted
• Care Cap is irrelevant to Ted unless his wife dies or moves into
residential care as well.
• Will Ted have to move home or can the ‘gap’ be met from somewhere
else?
• If Ted lives until he is 85 the cost of funding that gap will be £78,000.
ASHFORDS LLP. SEMINAR TITLE. DATE
Financial Planning in Later Life
• Is generally all about Balance!
Financial Security Estate Planning
ASHFORDS LLP. SEMINAR TITLE. DATE
Alternatives for Funding Care
• Savings
• Investments
• Immediate Care Annuity
• Deferred Payment Agreement
• Inheritance Tax Efficient Investment which maintain your securityo Revert to Settlor Trustso Inheritance Tax exempt investments
• SOLLA Accredited Adviser
ASHFORDS LLP. SEMINAR TITLE. DATE
Deferred Payment Agreement
• Loan against property - not free but cheaper than Private Equity
Release
• Must be offered if:o The home is assessable o You are assessed as needing careo Your liquid assets are < £23,250
• The LA must provide information & ensure capacity
• The LA must review
• The LA can refuse in certain circumstances
ASHFORDS LLP. SEMINAR TITLE. DATE
Intentional Deprivation
• “where a person has intentionally deprived or decreased their
overall assets in order to reduce the amount they are charged
towards their care. This means they must have known they needed
care and support and have reduced their assets in order to reduce
the contribution they are asked to make towards the cost of that
care and support” Care & Support Statutory Guidance 2014
• No time limit
• Was avoiding an assessment a significant motive?
• Reasonable expectation of Care & Support?
• Reasonable expectation of having to pay for it?
ASHFORDS LLP. SEMINAR TITLE. DATE
Sources of Support
YouYouYouYouYou
Your Unpaid
CarersSolicitor
Fina
ncia
lA
dvis
er
Your Paid Carers
Charities & NFP
Free IndependentAdvisers
Local Authority
NHS
It’s inescapable that the further you get from the bull's-eye ’the less focused support is on ‘your universe’
ASHFORDS LLP. SEMINAR TITLE. DATE
If you remember nothing else……
• If you pay for your own care ask for an assessment of needs to be
performed on 1st April 2016.
• Challenge the Budget set by the Local Authority if you think it misses
needs or is too low
• Be realistic about the type of care you might need and how much it
will cost
• If you are talking with the Local Authority or NHS about care needs
you are in a financial negotiation. Go in equipped with information
and the best advice you can afford