Deciding how to meet the cost of long-term care has become an increasingly daunting process for elderly people and their families. In particular, individuals are frequently left confused regarding what funding is available from the state.
Our team of professionals is well aware of this and is here to help you understand and consider all of the options available to you, both through our in-house knowledge and through relationships we have with specialists in financing long-term care for the elderly. It is vital that you are able to achieve the most suitable arrangement for you and your family.
We have provided below a brief overview of some considerations with regards to financing elderly care. However, this process is not straight-forward and it is important that you are able to make good, long-term decisions based on your individual situation.
We have therefore teamed up with a professional body called Symponia which is able to not only provide more detailed information regarding care planning, but is also able to introduce you to an appropriately trained, qualified, local professional who can offer you advice on the options available. Please do not hesitate to contact us on 01423 774070 (Yorkshire) or 01625 326470 (Cheshire) to learn more.
You may also download the Care Fees Planning Handbook here made available by Symponia which provides a detailed but succinct insight into the various options and frequently asked questions.
There are now various options available to you in seeking to finance your care in a simple, sustainable way. Most families are keen to ensure that they don’t have to worry about what might happen in the future whilst also protecting as much of their existing capital as possible. Some of the financial policies available include Immediate Care Plans (also known as ICPs, Immediate Annuities or Care Fees Payment Plans) and Equity Release (whereby you can raise capital, income or a combination of the two from your home whilst continuing to live in it).
Immediate Care Plans
Immediate Care Plans (also known as ICPs, Immediate Annuities or Care Fees Payment Plans) are tax efficient financial policies which are specially designed to cover all or part of a person’s care fees. Once put in place, a plan pays an agreed tax-free amount at regular intervals, directly to the care provider, for the remainder of the person’s life. An upfront lump sum is required to purchase such a plan which is calculated depending on age and health. The benefits of an Immediate Care Plan are that they provide peace of mind that care fees will be covered in the future and they enable a person to have financial independence, dignity and choice of where they receive care.
Equity release is a method through which elderly people can financially benefit from the value of their home whilst they continuing to live at the property. Equity release is becoming a popular and realistic way of enabling people to receive formal care in their own homes, delaying or preventing altogether the move into alternative accommodation.
Source: Symponia (www.symponia.co.uk).