Care Planning Services Explained
Thank you for expressing an interest in Farley Dwek and our Care Planning Services.
Whether you’ve just downloaded our Free Guides for information, or already spoken to us about your circumstances, we hope that our range of legal services will be of assistance to you, either now or in the future.
We often find that in dealing with a relatives Care Funding issues, other family members will often start to think about how they will pay for their own care in the future.
We hope you find this useful in conjunction with our Free Guides.
Our Care Planning Services
Financial Planning for Care Service
Not everyone will qualify for NHS Continuing Healthcare Funding, in fact the majority of people will probably not qualify – at least not immediately.
If you don’t qualify for Funding then depending on the value of your personal assets, you may have to pay for the costs of your care.
If you have less than £14,250 in Capital, you will not have to pay for the costs of your care, these will be funded in full by the Local Authority.
However, if you have over £23,250 in Capital, you will have to pay for the costs of your care in full until your Capital falls below the threshold of £23,250.
If you have over £23,250 in Capital, you do not have to complete any means testing assessments for Social Services. In other words you can declare that you are Self Funding and don’t have to disclose anything else about your financial circumstances – however, this means that you will pay for the full cost of your care.
If you do have to meet the costs of your care, then you can utilise your existing income, savings, deposits and investments.
However, there are also specialist insurance plans like Immediate Needs Annuities which, in return for a one-off lump sum payment, pay a guaranteed income for life. If income is paid direct to the care provider, it is tax-free.
You may also want to consider Equity Release as a way to raise capital against the value of your home.
Immediate Needs Annuities -Immediate Needs Annuities provide a guaranteed income designed to meet the costs of your care. Like all Annuities, you pay a one off lump sum to purchase the Annuity. The cost of the Annuity will depend on a various factors including:
- Your gender, age and health condition/medical history.
- The amount of monthly income required to meet your care payments.
You can also choose a number of options within your Annuity to protect your income from inflation for example, or to protect part of the capital should you die in the first six months.
Equity Release – You may also want to consider an Equity Release option as a way to raise capital to pay for your care costs.
Equity Release schemes allow you to unlock the equity value in your property which will be released to you on a tax free basis. The amount you can release will depend on the value of your property, your age and health condition. Equity Release schemes allow you to retain ownership of your home whilst giving you the flexibility to move home or sell your home, with the advantage of not having to make any repayments.
Inheritance Tax -Inheritance Tax is payable at the current rate of 40% on all assets above the current Inheritance Tax threshold of £325,000.
If your assets are above that threshold, there are ways in which you can mitigate your Inheritance Tax liability.
We are a firm of solicitors and we do not employ Financial Advisers or provide financial advice. However, our sister company Farley Dwek Financial Planning* have Independent Financial Advisers in your area who have the specialist expertise to work with you to plan for your Care Funding requirements and help you with Inheritance Tax.
If you would like us to make an introduction to one of our Independent Financial Adviser please do not hesitate to call us today on 0800 011 4136 or 0161 272 5222.
*Farley Dwek Financial Planning is a trading style of Cheetham Jackson Joint Ventures LLP, which is an Appointed Representative of Cheetham Jackson Ltd, who are authorised and regulated by the Financial Conduct Authority.
Asset Protection Service
Having dealt with the Care Funding issues arising from your relatives care requirements, it’s important that you plan ahead for your own potential care requirements.
This could include planning now to pay for the costs of private care by taking advantage of our Financial Planning for Care Service, but should also include measures to protect your own Capital from the costs of your future care.
There are ways to legally dispose of Capital without breaching Deprivation of Capital Rules, the most common of which is to place your Assets into a Discretionary Trust.
As a firm of solicitors, we obviously have the legal resources to set up a Trust for you or your relative, along with a Will.
Given our specialist expertise in the area of Care and Care Funding, we can provide you and your relative with the right legal advice in terms of what type of Trust to set up, based on your individual circumstances. As solicitors we can also act as Professional Trustees within the Trust.
It’s often a good idea to use the same firm of solicitors for your Trust as your solicitors acting for you in other matters, for example providing a Continuing Healthcare Funding Advisory Service or Retrospective Care Costs Claim Service as we already have a detailed understanding of your individual circumstances.
What do our Care Planning Services cost?
Like all our services, we will always offer you a free initial assessment of your requirements.
In terms of Farley Dwek Financial Planning * service, this will usually mean a free initial meeting at your home. At that meeting our one of our Independent Financial Advisers (IFA’s) will talk to you in detail about your financial circumstances and potential future care funding requirements.
If they believe that they can provide you with advice and assistance to plan for your future care funding requirements, they will clearly outline the costs of their advisory service.
They will put you under no obligation to use their services and put you under no pressure to make any quick decisions. Our IFA’s are experts in the area of financial planning for care, so you can be sure that you will be receiving the best advice available.
In terms of our Asset Protection Services, again we will offer you a free initial assessment of your circumstances based on our simple Asset Questionnaire.
Based on your circumstances we will then determine whether any of our services would be beneficial and explain fully what we recommend.
If you are happy to proceed based on our advice we will act for you on a transparent fixed fee basis.