Taisha Betz of Continuum Wealth and Tim Wall of GT Wealth Management consider the financial issues which people face when they require assistance to cope with day-to-day living.
If you are reaching the stage when you need to think about the time when you can no longer live independently, or if you have parents who may already be reaching that stage, you might also want to consider the financial impact. Whether you are considering moving into sheltered accommodation, a care home or paying for care in your own home, it is important to understand how they will impact you financially.
Care in later life can be expensive, particularly when residential costs are taken into account or if nursing care is needed. Although local authorities have a legal obligation to provide care to those in need and the NHS may in some cases be responsible for paying for your care, the criteria for determining whether care is needed are severe and the accommodation provided may not be to your desired standard or in the right location for you.
Conversely, if you are planning to rely on local authority assistance, you need to be aware of the means-testing criteria which are used to determine whether or not you might qualify and also the issue of deliberate deprivation of assets. You should also be aware of the financial support that may be available from other sources.
In many cases, the decisions may be taken by family members who hold a Lasting or Enduring Power of Attorney to deal with the older person’s affairs. That responsibility comes with a number of legal requirements that must be observed in order to protect the older person’s interests. If you are acting in that capacity you need to be aware of those responsibilities.
A key concern which people often have is to balance the requirement to pay for care with a desire to leave something to children or other beneficiaries. As well as ensuring that the money will be available to pay the fees for as long as required, in many cases people want to pass money on to children and grandchildren.
If you would like to learn more about later life financial planning, Continuum Wealth and GT Wealth Management are running a free seminar at Lillibrooke Manor near Maidenhead at 11am or 1 pm on February 13th 2020. We’ll be giving our guests the facts about later life financial considerations and describing some common challenges and solutions. The seminar will be followed by a complimentary light lunch and you can register for the event here or by calling our office on 01628 947347.
Taisha Betz is a financial adviser at Continuum Wealth. Tim Wall is an inheritance tax specialist at GT Wealth Management. GT Wealth Management is an Appointed Representative of Continuum Wealth, which is authorised and regulated by the Financial Conduct Authority.