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CARE FEES PLANNING

Care Fee Costs

Grandad - Care Fees The cost of long term residential care fees can amount to a weekly outlay of £300 - £1000+ depending on the level of care, quality of accommodation and location etc.

In England (other parts of the UK are similar) you are expected to pay for your own care fees if your income is sufficient and/or your assessable assets exceed £21,500. This includes your home and savings. Also your pensions and certain state benefits will be taken into account to pay for weekly care fees, although you receive a minimum weekly sum of £20.45 as a personal expense allowance.

If your total combined savings fall below the threshold of £21,500 the local authority may contribute. However if your total worth is between £13,000 and £21,500 you will have to contribute a weekly ‘tariff’ of £1.00 for every £250 of savings over the lower threshold of £13,000.

So 52 weeks @ £1 = £52. Fifty two pounds as a percentage of £250 = 20.8% p.a. Therefore under present rules, your capital between £21,500 and £13,000 could disappear in approximately 5 years.

Example
Per Week
Long Term care fees £400
Total assessable income
£200
Deficit £200

How the care fees deficit is paid:

  1. Total capital under £13,000 - Local authority contributes.
  2. Capital over £13,000 but under £21,500 - Tariff income is levied at the rate of £1.00 per week for every £250 of savings to pay towards cost. The local authority makes up the balance.
  3. Capital assets over £21,500 - All money is used to pay the £200 weekly deficit. So total capital (including house sale proceeds) above £21,500 will reduce by more than £10,000 for every year in long term care accommodation. Once below £21,500, Rule number 2 applies.
Care Home Elderly

The Problem

Unless you can prove to the local authority (or a court) that you had a valid reason for gifting your home and/or savings, such as inheritance tax planning, the transaction is likely to be judged ‘a depravation of assets!’. In this instance even though the assets may have been passed to beneficiaries’ years before going into care, the local authority may claim these assets as ‘Notional Capital’. Certainly within 6 months of going into care, a sizeable gift for almost any reason, could still be legally claimed by the local authority as a depravation of assets.

INHERITANCE TAX – V – CARE FEES!

Inheritance Tax applies to assets exceeding £300,000 and then a 40% tax applies. Also there are lots of legal ways to greatly reduce this liability. Conversely an estate valued at less than £300,000 can be quickly swallowed up by long term care fees that may cost well in excess of £25,000 each year and rising?

The Solution

Care Home Flowers The best solution is to seek independent advice from a qualified care fees specialist. A network of professional independent financial advisers specialise exclusively in the area of long term care planning. They are all fully qualified independent financial advisers as required by financial services legislation, but hold additional qualifications by examination in long term care.

There is absolutely no charge or obligation whatsoever and your advisers, friends or family are welcome to attend initial and subsequent consultations in the comfort of your own home if desired.

A professional care fees report tailored to your individual circumstances will then be sent to you free of charge. You do not have to follow recommendations made by the adviser, but if you do the advisers fees will normally be compensated by commissions received as a result of investment solutions recommended.

Where appropriate, your report will contain specific care fee recommendations that will take into account, state benefits, inheritance tax, trusts and investments.

Take the first step now, complete the care fees 'ADVICE REQUEST' and you will receive a Free Care Fees Guide by post!

Mandatory data is denoted by an *

Advice Required *

I am *

Your Contact Details - Correspondence will be sent to this address

Title *
First name *
Surname *
Address *
 
City / Town *
County
Postcode *
Telephone *
Email *

Applicant's Contact Details (the person needing care) (If different to person to whom correspondence needs to be addressed)

Title
First name
Surname
Address
 
City / Town
County
Postcode
Telephone
Email

Applicant's Personal Details (the person needing care)

What relationship is the applicant to you?
Marital Status *
Date of Birth *  Day    Month    Year
Health *
Is the Applicant a smoker? *      

Financial Information

Existing or anticipated retirement income (per week)
State Pensions * £ 
Private Pensions * £ 
State Benefits and Allowances * £ 
Investment Income * £ 
Other Income * £ 
Capital and Savings
Property * £ 
Bank and Building Society Deposits * £ 
National Savings * £ 
Peps and ISA * £ 
Shares or other Investments * £ 
Other * £ 

Care Information - where applicable

Care Home Name
Address
 
City / Town
County
Type and expected cost of care (per week)
Nursing Home £ 
Residential Care Home £ 
Domiciliary Care £ 
Legal Arrangements
Is an Enduring or Lasting Power of Attorney held?      
Has the applicant a current and valid will?         

Other Financial Objectives or Circumstances

Capital Protection, Other Dependents, Mortgages etc
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Express Funding Solutions
30 Montgomery Way
Manchester M26 3TG
Telephone: 0161 723 0987
E-mail: smd@ef-solutions.co.uk


*NOTE

Care fee specialists are only too pleased to establish professional relationships with financial advisers and care providers.

© Copyright 2006 EF-Solutions.co.uk. All Rights Reserved "We are neither care fees specialists or independent financial advisers and as such, are unable to offer financial advice. Enquiries generated via this website are passed on to regulated independent financial advisers that are also qualified care fees specialists by examination through a recognised body such as the Chartered Insurance Institute."


© Copyright 2006 EF-Solutions.co.uk. All Rights Reserved
"We are neither a mortgage lender nor an independent financial adviser and, as such, are unable to offer financial advice.
Enquiries generated via this website are passed on to independent financial advisers and mortgage brokers."
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