by Andy Hopper,
Independent Financial Adviser and Long-Term Care Specialist, Manning and
Company
Jeremy Hunt, the Health Secretary, has announced this
week that from 2017, anyone with assets, including their home, worth more
than £123,000 will have to pay for the first £75,000 of their care costs. They
will also in addition, pay “bed and board” of up to £12,000 annually when in a
nursing home.
The introduction of a cost cap and raised asset allowance
is in line with the Dilnot commission report of 2011, although there is
significant lack of understanding of how much care will cost and who will be
paying for it.
The Society of Later Life Advisers’ (SOLLA) press release
suggests that “planning for the costs of care in later life will increasingly
move to be a mainstream area of financial planning”. The facts are that
more than 80% of people are entering full time care without seeking prior
professional advice on the funding of that care.
When people in care exhaust their funding it causes
significant distress to the family, and the care home concerned. How can the home (which is a business)
continue to provide care when there is no assurance of being paid? Can the family cover the costs - or will the
person in care have to move? And to
where?
It is increasingly critical that people seek
professional advice in this complex area from the outset, to ensure that the
cost of their care is fully met for as long as required.
At
Manning and Company we have specialised in-house expertise to guide and help
people get their care fee planning strategy right. For independent advice, call us today – our
first meeting is free and without obligation.
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