Care Fees Advice and Investment Specialist
Moving— the ability to move from one room to another on a level surface.
Washing — being able to wash and bathe unaided, including getting in and out of a bath or shower.
Dressing — being able to take off, put on, secure and fasten all necessary items of clothing.
Transferring — being able to get on and off the toilet, in and out of bed to an upright chair, or a wheelchair and back again.
Feeding — able to eat pre-
Continence — the ability of being able to control bowel movements or bladder functions.
Mental impairment — where a person’s ability to reason, remember or understand, has deteriorated to a point that they are unable to look after themselves without the constant supervision or assistance of another person.
Q.
How is the premium calculated?
A.
It is based on the amount of shortfall in payment of fees after taking into account the current income, the age and medical situation of the recipient.
Q.
So what are the main advantages?
It completely guarantees to pay the care fees for as long as necessary, and ensures that both the elderly person and/or their family has total peace of mind that the money will never run out. It also means that the remaining investments can be better invested to produce growth rather than income. In addition the return on the premium is usually far higher than could be expected from conventional accounts.
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What are the risks?
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There are two risks; the first that the elderly person dies early in the plan (although there are ways of mitigating this); the second (and larger) risk is to the provider, who has an indeterminate period of having to meet the shortfall in fees.
What happens if the elderly person has to move from a residential to a nursing home where the fees are much higher?
A.
We allow for this eventuality in the initial planning stage. The care fees payment plan can be topped up or the extra income required can be taken from the remaining investment.
Why should I consider a care fees payment plan when the income from my investments easily cover my care fees?
The value of your estate is probably well above the current threshold for Inheritance Tax. A payment into a care fees plan will reduce the value of your assets thereby saving your estate 40% . Also a plan would give a far greater return on your money than any other investment.
Q .
Why should I use Capital Care, when I could deal direct with the care plan provider?
A .
By using Capital Care, you pay no extra than going direct. In fact because we are independent, we can deal with all the different care plan providers. It is quite remarkable how the different underwriters view various medical conditions. We have had instances where one provider has quoted a quarter of the price of another– a difference of over £140,000!
Q .
What is a Care Fees Payment Care Plan?
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Put simply it is the payment of a lump sum premium to a provider, who then guarantees to pay the shortfall in care fees for as long as necessary.
Q .
Can anyone buy a Care Fees Payment Plan?
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No, it is specifically designed mainly for the elderly who have assets above the means tested threshold for Social Services financial assistance, and are receiving or about to receive care. They also have to fail at least one activity of daily living (ADL). The minimum age is actually as young as 50.
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What is a care fees payment plan?
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What if an Immediate Care Plan is unsuitable?
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There are often other alternatives and we can advise you of these.
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So, what do I do now?
Capital Care Financial Services Ltd is authorised and regulated by the Financial Services Authority.
Capital Care Financial Services Ltd is entered on the FSA register (http://www.fsa.gov.uk) under reference 435067.