Finding out that your elderly parent or relative can no longer cope well enough to live alone can be overwhelming in many ways. The loss of independence can cause emotional turmoil. Many people also feel very much under pressure and concerned when they start to look at the financial cost of paying for long-term elderly care.
Currently anybody who has assets worth more than £23,250 who has to take long term elderly care in the UK will need to pay for their own fees for staying in a care home.
The Dilnot Report and Its Progressive Findings
The Dilnot Report, was an independent review of elderly care commissioned by the government. With a focus on how elderly care is and should be funded, it looked closely at the fees paid by individuals. The report recommended that these fees paid by individuals should be capped at £35,000 per person and any further payment be met by the state. Unfortunately the capping that is being recommended by the government to take effect in 2017 is now set to be £75,000 as opposed to the recommended limit from the report.
What You Need to Know:
If you’re stuck in the position of not knowing what to do in order to pay for care for either yourself, an elderly parent or relative, here are the key points that you’ll need to consider:
- Take good advice. Look for a reputable company who will be able to advise you on all matters pertaining to the financial aspects of long term care.
- Type of care. There are several types of home care for an elderly person, depending on their overall health. One is home care, when an aide or helper will visit the person in their own home. Other options are a residential nursing home or a residential care home – these have differing levels of service.
- Fees. It’s a lot less expensive to opt for home care than for a residential home option.
- Financial Aid. Depending on your assets and savings, you may be entitled for help from your local authority.
- Power of Attorney. Many of our clients opt to use the Power of Attorney for their relatives to take action on their affairs. It’s a legal arrangement that will allow for full control over administration of the person’s affairs.
- Online Tools. There are several online tools that can provide help during this stressful time. Make use of online chat tools to speak with financial advisers, Cost of Care calculators, FAQs and any relevant videos.
- The Dilnot Report. Andrew Dilnot has investigated the current situation and is making recommendations to the government about social care funding and how it affects individuals. These recommendations will come into play in 2017.
- Financial Advice. Speak with a qualified Financial Adviser before committing to paying any fees.
- Means Test. You will need to arrange with a local representative of your authority to undergo the means test to understand what financial payments you will need to be responsible for.
- Annuities. Prepare early by setting up an annuity to help to pay for the future cost of elderly care.
Contact Farley Dwek if you have questions regarding the funding of either yourself, or your elderly relative.