SW Seniors Assembly

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Speakers

Andrew Carrigan

Solicitor

+44 (0)1823 232339

a.carrigan@ashfords.co.uk

Chartered Financial Planner Regional Director

+44 (0)117 905 8777

dave.robinson@frenkeltopping.co.uk

Dave Robinson

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Care Act 2014

The most significant reform of care and support in

more than 60 years, putting people and their carers in

control of their care and support.

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Stat Attack

900,000

900,000

W 59

M 75

50%

40% = P26% = S13% = C9% = F

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The Care Journey

Unpaid Care at Home

Domiciliary Care

Residential Care

Nursing Care Home

Inte

nsity

of

Car

e N

eeds

Progression of Time

Average Stay

2 Years 4 months1.4m carers

40% support parent

26% support partner

13% support children

9% support friends

• 25% die within 3 months

• 50% die within 1 year three months

• 90 die within 6 years

Hospital

57% of Nursing Home admissions are from hospital45% of Residential Home

admissions are from hospital

Privately Funded until hit the ‘Care Cap’

Local Authority support dependent on means test

NHS Funding - Assessed

Average Stay

2 Years 2 months

NHS Funding - Assessed

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Accessing Local Authority Support

• Assessment of needs

• Identification of ‘Eligible Needs’

• Develop Care Plan

• Calculation of ‘Personal Budget’

• Means Test

• Cap on Costs - ‘Limit on amount anyone will have to pay towards

care’ – Really?

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The Care Cap in figures

• The ‘Cap’ - £72,000

• You must meet ‘Daily Living Costs’ - £230 per week

The ‘Means Test’

• Lower Capital Limit - £17,000

• Upper Capital Limit - £27,000 with ‘Property Disregard’

£118,000 without ‘Property Disregard’

• Assumed income of £1 for every £250 between lower and upper limits

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Example - Mary

• Mary is 80 and lives at home

• Mary receives help that she

pays for herself

• The help costs £800 per

week

• On 1st April 2016 Mary asks

for an assessment of needs

• On 1st May the Local Authority

sets a Personal Budget of

£220pw

• Mary’s income is £430pw.

£200pw is deemed available

to meet care costs

• Mary has £10,000 in savings

and owns her home which is

worth £150,000

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Example - Mary

• As long as she is at home Mary will receive £20 from the Local

Authority towards her care costs

• She will lose Attendance Allowance of £82.30

• The spend that counts towards the care cap is £220 per week

• Mary’s savings run out in 15 weeks and she goes into residential

care

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Example - Mary

• The care home costs £650 per week. Mary’s home is sold and

£140,000 is realised. Mary loses the Local Authority funding but is

entitled to Attendance Allowance

• Costs are met through £405 from income and £245 from savings.

• Mary will take 6 years and a spend of £214,800 to hit the care cap.

• After she hits the care cap Mary will still have to pay £430 per week

towards her care costs.

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Example - Ted

• Ted is 74 and lives at home.

His wife is his main carer.

• They pay £300pw for carer

support

• On 1st April 2016 Ted moves

into ‘Sunny View’ nursing

home

• Sunny View’s fees are £900pw

• Ted has £50,000 cash savings in

his own name. Ted and his wife

own their home and it is worth

£430,000

• On 1st August 2016 Ted’s wife

asks for his needs to be assessed

• The Local Authority assessment

sets an Independent Personal

Budget of £750pw

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Example - Ted

• £520 of the £900pw spent on Ted’s care counts towards the ‘cap’. It

will take 2.7 years for Ted to hit the ‘cap’. The actual spend on care

will have been £186,300.

• Ted’s income is £254.90pw. Ted will ‘self-fund’ for 34 weeks after

which he will qualify for ‘means tested’ support.

• Once Ted’s savings reach £26,999 he will need to contribute £40pw

from his savings. His income is used to meet Daily Living Costs.•

• The Local Authority will pay £480pw but someone will need to pay a

£150pw top up if he is to stay at Sunny View

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Example - Ted

• Care Cap is irrelevant to Ted unless his wife dies or moves into

residential care as well.

• Will Ted have to move home or can the ‘gap’ be met from somewhere

else?

• If Ted lives until he is 85 the cost of funding that gap will be £78,000.

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Financial Planning in Later Life

• Is generally all about Balance!

Financial Security Estate Planning

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Alternatives for Funding Care

• Savings

• Investments

• Immediate Care Annuity

• Deferred Payment Agreement

• Inheritance Tax Efficient Investment which maintain your securityo Revert to Settlor Trustso Inheritance Tax exempt investments

• SOLLA Accredited Adviser

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Deferred Payment Agreement

• Loan against property - not free but cheaper than Private Equity

Release

• Must be offered if:o The home is assessable o You are assessed as needing careo Your liquid assets are < £23,250

• The LA must provide information & ensure capacity

• The LA must review

• The LA can refuse in certain circumstances

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Intentional Deprivation

• “where a person has intentionally deprived or decreased their

overall assets in order to reduce the amount they are charged

towards their care. This means they must have known they needed

care and support and have reduced their assets in order to reduce

the contribution they are asked to make towards the cost of that

care and support” Care & Support Statutory Guidance 2014

• No time limit

• Was avoiding an assessment a significant motive?

• Reasonable expectation of Care & Support?

• Reasonable expectation of having to pay for it?

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Sources of Support

YouYouYouYouYou

Your Unpaid

CarersSolicitor

Fina

ncia

lA

dvis

er

Your Paid Carers

Charities & NFP

Free IndependentAdvisers

Local Authority

NHS

It’s inescapable that the further you get from the bull's-eye ’the less focused support is on ‘your universe’

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If you remember nothing else……

• If you pay for your own care ask for an assessment of needs to be

performed on 1st April 2016.

• Challenge the Budget set by the Local Authority if you think it misses

needs or is too low

• Be realistic about the type of care you might need and how much it

will cost

• If you are talking with the Local Authority or NHS about care needs

you are in a financial negotiation. Go in equipped with information

and the best advice you can afford