Angela 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…
Money 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
If 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: