Wealth management planning: Money can rip a family apart – a lesson for all

Wealth management planning: Money can rip a family apart – a lesson for all

Money can rip a family apartAngela Sherman, director of Care To Be Different and Tim Davison of Shaw Gibbs will be providing advice about care fees and care funding at a Care Fees Advice Surgery in Oxford on Saturday 11th April 2015 from 10am – 2pm. Details below.

Tim Davison explains more about why it’s vital to look ahead when it comes to financial planning and potential care costs…

Tim Davison, Shaw GibbsMoney can rip families apart: a lesson for all

An example of managing your wealth if care fees are included…

The Moore family were a pretty wealthy family, not dissimilar to many families that live in the Oxford area.

Arthur and Elizabeth both had a career and built a good life for themselves and their family. James, their eldest, was always going to be a high flyer and ended up with a fantastic job in the city. Louise on the other hand, wanted different things; her passion was helping people and she became a social worker.

Like many parents Arthur and Elizabeth wanted to help both of their children in life, but could see the financial disparity between James and Louise. James didn’t need the help whereas Louise did.

So that’s what happened, and Arthur and Elizabeth reconciled that with themselves on the basis that they would leave their estates to James to even things out.

If we wind the clock on 30 years things worked out very differently. Arthur died relatively young in his 60s, then Elizabeth suffered from dementia and went into care for many years. Being a wealthy lady she ended up paying for her own care, and the estate, which had been earmarked for James, was gradually eroded down to virtually nothing.

In the meantime James suffered from burn out and went through an expensive divorce, and is now in need of funds. Whilst Louise is very happily married and her husband recently inherited a significant sum from his father and they are financially secure.

In a recent conversation with James, he asked, “What could my parents have done differently to have avoided this situation developing?”

Wealth management planning

As with all family situations there is no one single ‘magic bullet’ but a whole series of measures that a prudent family can take over the years to optimise their position.

This was my reply to James…

  • Assets could have been ring-fenced for James at an earlier stage through the use of trusts
  • The ownership of the family home could have been revised to ensure Arthur’s share of the family home was protected for the family
  • Investments could have been arranged differently to protect them from the means test
  • At the point of needing care, take expert advice from impartial specialists – the NHS and Local Authorities have a vested interest – both want you to pay for your own care
  • Maximise your benefit entitlements – it’s a little known fact that the NHS should pick up the whole cost of care if circumstances dictate, make sure you get this funding if you’re entitled
  • Make sure you’re claiming Attendance Allowance (worth up to £4,218 per annum)
  • Ensure your Funded Nursing Care Payment is being paid – this is paid directly to Nursing Homes by the NHS and is worth £5,766 per annum
  • Seek financial advice from a care fees specialist – there are other viable options to paying for care from your own capital
  • Finally – talk about money in the family, share your thoughts, ideas and plans with them and take expert advice early and regularly

Shaw Gibbs logoIf you’d like to talk to us about any of these matters please contact Tim Davison at Shaw Gibbs on 01865 292198 or email Tim here.

Read more about the Care Fees Advice Surgery – click the link below and find out how to book your place:

Shaw Gibbs care fees advice surgery, 11th April 2015

 

3 Comments

  1. Elspethblack 2 years ago

    Thanks Angela. We will have to see a Solicitor as the situation is reaching crisis point. We have been trying to cope with this since our father died in 2009. In 2012 our sister had us investigated by the OPG and although they were satisfied with the mass of evidence we had to supply, my sister was not and has continued to accuse us of everything possible. Staff at the care home have told us that she is currently recording details of our visits and the manager told me on Friday that she had told him things about me for which she had no evidence (and were
    definitely not true) He told me that he had directed her to social services with her concerns. Basically we are three very honest people, trying to make sure our mother gets the care she needs (and only pays for the care she should be paying for) but being put under immense pressure by our other sister.

  2. Elspethblack 2 years ago

    Our family is being ripped apart because my mother set up a Joint Power of Attorney. (I don’t think she would have ever foreseen the problems that this has caused and unfortunately(?) is totally unaware of everything that is going on around her.) One of the Attorney’s is using the fact that we can’t do anything without the agreement of all attorneys to control everything that we try to do for our mother. I don’t think the Office of the Public Guardian is that bothered unless it directly affects finance. I recently submitted an appeal against the decision not to award NHS CHC to our mother, but I am now anticipating an objection from the “bully” attorney. Has anyone else experienced this type of controlling behaviour? We need to know how we can deal with it. It has been going on for five years, but has now come to the point where it is affecting all aspects of our life and our mother’s care.

    • Author
      Angela Sherman 2 years ago

      That sounds like an extremely difficult situation, Elspeth. If the ‘bully’ attorney is not acting in the best interests of your mother, this could certainly be a matter for the Court of Protection – and it’s disappointing that the OPG doesn’t seem interested. You may need to consult a solicitor for some initial advice.

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