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Richard Smith – On Care Fees

What To Do About Care Fees?

This is slightly off topic for Moneytrainers but i thought it worth sharing here as some of you will be having to make decisions about care fees and care fees planning, I hope it helps. floor those of you that are looking to have one of my Moneytrainers workshops then I include a care fees planning module. Which is specifically designed for those of us that have parents who might need long term care.

Like a lot of things we know nothing about Care Fees offers up a lot of options, a good number of scam advice and little in the way of a quick fix. I assume you are here because you face some decisions about care fees for yourself, a spouse or a parent.

Welcome to my world.

There are no immediate answers here. We all have unique circumstances and there is no ‘one answer’ to the problem of what to do next.

Who has responsibility? What should the Council provide, what about the NHS? What happens to mum’s house, how much does she need spend on care fees.

There is no immediate result for you. Like all of these things my response is the same.

Your options, the way forward, the best thing to do next depends on the individual circumstances.

You may have been advised to… Put your home in trust. Give money away. Buy overseas property. Don’t tell them.

All of these things could make sense – but in my experience the only people who end up doing any of that are effectively being scammed. And, various acts of parliament have been put in place to prevent the ‘state’ from being ‘deprived of assets’.

The 2014 Care Act makes specific provision for these scenarios even if it doesn’t say so explicitly.

The local authority (the Council) has an overriding responsibility to make sure you, your wife or partner or your parent is looked after. The costs of doing so are always secondary.

The meetings you have with them via Social Services are likely to be harder than you thought. And I can almost assure you that your fears of dealing with them are well founded. That’s not meant to be a slight on them, most are overworked and many lack experience and have a requirement to trya cap spend where possible.

In my own experience, I ended up taking most of the action needed – it was more controllable that way.

How Much Of The Estate Can You Preserve?

Well from 2023 we are told that the ‘cap on costs’ will be £86,000. There are all kinds of shenanigans that are going on around that. With change expected. In all fairness to Government, and since the Dilnot report this has been in a constant state of flux.

Fact is, you will not be expected to cover all of your care costs. Some care, end of life Nursing Home Care is funded by the NHS. The key to this now is…

Some of your care costs, if you have assets, like a pension, investments or own a house are likely to be preserved in case of care costs being required.

In terms of planning for future costs of care you have to be incredibly careful of your options. Do not go down the ‘lifetime trust route’ especially not with your main home – it’s far too dangerous to consider – get in touch if you have.

Do not start getting involved in gifting, it won’t work.

Your main thing is this.

Understand what the requirements are. Know what the state provides and how that works. Carefully assess the likelihood of needing to cover ‘care costs’ most don’t need it. Don’t buy from leaflets in the door or dog and pony show exhibitions at the local school fete. Don’t buy from a ‘will writer, estate planner’ or other local expert. Do, understand what your options are. Do, understand the needs of the person who may need care. Do, get a handle on the finances now. Do, make sure there is a power of attorney in place.

These are the steps I recommend initially.

When you are ready to get some solid guidance on this care fees planning business, then get in touch for a one to one consultation. Click Here To Book A Care Fees Meeting.

Or use the form below to get in touch for an initial chat. I have no products to sell you, my only offer is professional and impartial guidance through the minefield.

Richard Smith June 8, 2022.

How Do I Know About This Stuff? I am a qualified but not authorised Financial Consultant. In 2010 I gave up practising as a regulated Financial Adviser. Disillusioned with the industry that I had spent thirty years working in and with a wife, two teenage children and a cancer diagnosis. Realised that the plan offered by my industry was no longer working. The financial industry was not fit for purpose.

So I took my qualifications and my limited resources and now consult on financial issues with small businesses and individuals and help them solve problems that the financial services industry seems unable to help with.

I understand Care Fees Planning because I am qualified and because I have had to deal with it personally with three parents so far. Get in touch when you want to talk about Care Fees and the options for yourself.