SW Seniors Assembly

ASHFORDS LLP. SEMINAR TITLE. DATE Speakers Andrew Carrigan Solicitor +44 (0) Chartered Financial Planner Regional Director +44 (0) Dave Robinson

ASHFORDS LLP. SEMINAR TITLE. DATE 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.

ASHFORDS LLP. SEMINAR TITLE. DATE Stat Attack 900,000 W 59 M 75 50% 40% = P 26% = S 13% = C 9% = F

ASHFORDS LLP. SEMINAR TITLE. DATE The Care Journey Unpaid Care at Home Domiciliary Care Residential Care Nursing Care Home Intensity of Care Needs Progression of Time Average Stay 2 Years 4 months 1.4m 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 hospital 45% 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

ASHFORDS LLP. SEMINAR TITLE. DATE 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?

ASHFORDS LLP. SEMINAR TITLE. DATE 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

ASHFORDS LLP. SEMINAR TITLE. DATE Example - Mary Mary is 80 and lives at home Mary receives help that she pays for herself The help costs £800 per week On 1 st April 2016 Mary asks for an assessment of needs On 1 st 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

ASHFORDS LLP. SEMINAR TITLE. DATE 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

ASHFORDS LLP. SEMINAR TITLE. DATE 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.

ASHFORDS LLP. SEMINAR TITLE. DATE Example - Ted Ted is 74 and lives at home. His wife is his main carer. They pay £300pw for carer support On 1 st 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 1 st August 2016 Ted’s wife asks for his needs to be assessed The Local Authority assessment sets an Independent Personal Budget of £750pw

ASHFORDS LLP. SEMINAR TITLE. DATE 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

ASHFORDS LLP. SEMINAR TITLE. DATE 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.

ASHFORDS LLP. SEMINAR TITLE. DATE Financial Planning in Later Life Is generally all about Balance! Financial Security Estate Planning

ASHFORDS LLP. SEMINAR TITLE. DATE Alternatives for Funding Care Savings Investments Immediate Care Annuity Deferred Payment Agreement Inheritance Tax Efficient Investment which maintain your security o Revert to Settlor Trusts o Inheritance Tax exempt investments SOLLA Accredited Adviser

ASHFORDS LLP. SEMINAR TITLE. DATE 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 care o Your liquid assets are < £23,250 The LA must provide information & ensure capacity The LA must review The LA can refuse in certain circumstances

ASHFORDS LLP. SEMINAR TITLE. DATE 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?

ASHFORDS LLP. SEMINAR TITLE. DATE Sources of Support You Your Unpaid Carers Solicitor Financial Adviser Your Paid Carers Charities & NFP Free Independent Advisers Local Authority NHS It’s inescapable that the further you get from the bull's-eye ’the less focused support is on ‘your universe’

ASHFORDS LLP. SEMINAR TITLE. DATE If you remember nothing else…… If you pay for your own care ask for an assessment of needs to be performed on 1 st April 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