Chestnut Financial Services Limited

10 Newark Road, Bassingham, LN5 9HA

Call Us: 01522 788887

Email Us: ian@chestnutfs.co.uk

Chestnut Financial Services Limited

10 Newark Road, Bassingham, LN5 9HA

Call Us: 01522 788887

Email Us: ian@chestnutfs.co.uk

Chestnut

Financial Services Limited

10 Newark Road,

Bassingham,

LN5 9HA

Call Us: 01522 788887

Email Us: ian@chestnutfs.co.uk

Our Care Fees Advice Service

A Warm Welcome

The worry most of us have about long term care fees provision for our parent, relative, or loved one is that:

  • The money that they allocated for their long term care fees may possibly run out in the future.
  • They would like to stay in their chosen home for the rest of their life.
  • They would not want to be a burden if the cost of care fees ever became too high.

So many of us are searching for peace of mind that our money for elderly care fees will be able to meet the rising care costs indefinitely.

A qualified care fees planning specialist like Ian Francis is able to give you lots of advice.

We can advise you on care fees planning, answering your questions and if you want us to help arrange a solution, like a care fees annuity, then we are here to help arrange that too.

Really important to understand the difference between nursing (health) care and social care

Medical care is provided and funded by the NHS, it is provided by registered nurses and district nurses in the home. The types of care include respite care, palliative care, and rehabilitation care.

Social care is not provided by the NHS. It is non-medical care, provided by the local authority social services or by yourself (called self-funding). It may include home help, meals-on-wheels, and respite care (provides breaks for carers). It helps people access information and support for everyone to maintain their independence and avoid becoming vulnerable. Equipment is generally provided without means-testing if its value is no more than £1,000.

Local Authorities are obliged to assess needs and circumstances if requested regardless of means. It is a single assessment process to assess care needs first, and then a financial package depending on your circumstances, so it is not one assessment by the NHS and then another by the local authority.

If you have concerns about the healthcare decisions being made, then we can refer you to an independent healthcare advocate, but feel free to look at the Government’s website, NHS Choices, regarding healthcare, Independent Age and Age UK’s website, which I think is excellent. For those needing after-care in relation to mental health, websites such as MIND and Alzheimer’s Society are also excellent.

Qualified, Expert, Advice About Paying for Care Fees

Qualified, Expert, Advice

Ian is a fully accredited member of the Society of Later Life Advisers (SOLLA), who can:

  • Help with all later life financial matters at such an uncertain time
  • Ensure your finances or those of a loved one are one less thing to worry about whilst you concentrate on maintaining your health.

Our independent financial advice should help you make clear and informed decisions. Knowing that you have had the information and choices presented to you in a way that helps you make the best choices and decisions for you or for a family member.

SOLLA later life advisers specialise in the financial needs of older people. By being independently accredited by SOLLA we can offer the added reassurance that we can give the practical help and guidance needed to help you make the right decisions at the right time.

Accredited advisers can advise on:

  • Retirement Planning - pensions and annuities
  • Funding for Care Home fees
  • Funding for care in your own home
  • Equity release and other property options
  • Savings and investment planning
  • Tax matters and estate and wealth planning
Care Fees - My Care Consulting Brochure

If someone needs care, either now or imminently, the process of trying to find suitable care, then trying to work out who will need to pay for it, can be extremely
challenging for most people.

My Care Consultant is a terrific care navigator, helping people to make sense of the rules and regulations that apply whilst they try to navigate the challenges of getting care for a loved one, whilst we advise on how best to pay for care, a care navigator. They have written a terrific guide to help point you in the right direction at the earliest opportunity. Please do contact us and we will happily send it to you with our compliments.

How Might Care Fees Be Funded?

Many of us would prefer care in our own home – either where we live now or in a more manageable property in the future. But sometimes it's best that we stay in a nursing home or a care home, or a home that offers a mixture of both.

  • The Money Advice Service indicates that care fees at home are around £17 an hour, which for two hours each day works out at almost £12,500 per year.
  • For some, there is a need for 24-hour live-in care, which can cost as much as £50,000 a year if not more.
  • The annual cost of a care home is on average £30,000, rising to £40,000 if nursing is required and typically from £50,000 a year if 24-hour care is required.

Have you made some financial provisions for care fees if needed? Key options include using savings and investments, using pension income,  and using equity release - especially where we would prefer to remain in our current property.

With a substantial increase in the number of people expected to need care homes and care facilities within their own homes, financial support from councils and government is likely to be limited. So except for those meeting very low financial criteria and high needs requirements, people will need to pay at least something towards care fees, if not the whole of it.

Care Fees - Conker Logo for Chestnut Financial Services Limited

For How Long Will We Need To Pay?

One issue that faces all of us is that it can be difficult to predict how long they might need to pay for our care fees. When people start receiving care, for example benefiting from a more structured regime with regular meals, correct doses of medicines, social interaction etc, their life expectancy increases. While this is a wonderful relief for the family, it does mean that there can be serious financial pressures over a much longer period of time to meet care fees.

What if the length of stay in a residential care home is 30 months – or longer?

There is a range of different financial products that help people to manage the risk of outliving their assets which include immediate needs annuities and bonds.

Making choices around care fees funding can be daunting and it is vital that people fully understand not only what the person needing help might be responsible for but also what they might be entitled to.

Whether a person receives care in their own home, relies on family, or chooses to go into a residential home, the best approach is to speak to a specialist financial adviser who can help to ensure that they are making the right choices for their situation to meet those care fees costs.

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Local Authority Help to Pay

The local authority has a duty to carry out a care needs assessment to find out what a persons care needs are. This assessment will be used together with a financial review – referred to as a means test – to determine how much someone will need to contribute.

It is possible that the local authority may pay for all the care fees, some of them, or nothing at all. So it is the person themselves, often in the most vulnerable of situations, that has to then pay for the cost of care fees themselves - whether all of them or just some of them.

Although the value of your home is not taken into account in certain situations such as if you live with your spouse or a dependent child or adult, if you have assets and savings including your home worth more than £23,250 then the local authority will expect you to pay all care fees (those who opt for care at home do not have the value of their house taken into account but to receive support, they will need to pass a care needs test).

Your income, including that from pensions, annuities, and the state pension, are taken into consideration.

Equity Release as One Option to Pay for Care Fees

Equity Release Option to Pay Care Fees

Equity release allows people to access a proportion of the value of their home while remaining in the property with the loan typically only becoming due when they and their partner have died or gone into care.

The equity release can be used for a variety of reasons including paying for care fees and making the property more accessible, make home or garden improvements including walking-in showers and stair lifts.

While some people may wish to use an equity release lump sum to make these improvements and pay for care fees, others may choose to use drawdown (i.e. reserving an amount and taking it out gradually over a period of time) to pay for care fees.

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Care Fees Case Studies

Care fees case studies are a helpful way to try to understand how care fees annuities work and how they can be applied in practice.

Please contact us to discuss your specific needs.

Alison's Mum

  • Alison gave me a call as her mum had just been discharged from hospital and sent to a home, very concerned about fees.
  • I explained that her mum would have an assessment to see if she qualifies for NHS continuing healthcare (CHC) – in which case the cost would be met in full by the NHS. It only deals with situations where there is primary health or medical need (physical or mental). Effectively the NHS is saying “you should really be in a hospital” but we need to free up a hospital bed (it appears to be very expensive in the hospital rather than a nursing home).
  • I then explained that her mum might qualify for NHS-funded nursing care, which provides nursing support by a registered nurse, if she does not qualify for NHS continuing healthcare. The NHS pays care homes directly for this nursing care.
  • And finally, I explained that the local authority provides care and support to eligible individuals. The local authority will consider the financial situation carefully. All assets including your home and valuables are included unless specifically disregarded – so there is a need to tread carefully with financial assessments.
  • Alison and I met, with her mum, and had a frank conversation about all her finances. We discovered what was going to be included in the financial assessment, and what wasn't. It took a while to make everything clear, but the relief for Alison to understand money was priceless. Alison's mum did not need to pay anything!

Alice's Case

  • Alice had a stroke which led to her needing to move into a nursing home, which costs £25,000 a year.
  • Alice has £10,000 net income a year and therefore needed financial advice on how to provide the cost of care fees.
  • Alice needs an extra £15,000 per year to help with her care fees.
  • Alice had £75,000 from the sale of her home.
  • The money for life care would have run out in five years if Alice did nothing.
  • Alice bought an immediate lifetime care fee plan which guaranteed to pay the £15,000 for as long as care was needed.
  • Alice was left with £25,000 to provide for personal expenses and for increased care fees in the future.
  • Alice could alternatively have had a deferred care fees annuity, which was discussed as an option, as was self-funding, but preferred the immediate care fees annuity option.

Constance's Case

  • Constance had needed to move into a residential home, as her dementia had progressed to a more advanced stage.
  • The residential home of her choice costs £40,000 per year.
  • Constance has £15,000 net income a year and therefore needed financial advice on how to meet the care fees.
  • Constance had £170,000 from the sale of her home plus a small amount of savings.
  • The money for her care fees would have run out in 6 years if she did nothing.
  • Concerned about her family inheriting what was possible, Constance bought a deferred lifetime care fee plan which guaranteed to pay the extra fees, escalating at 5% a year.
  • Constance was able to fund the extra fees she needed herself, just in case she might die within a few years, knowing that the deferred annuity kicked in to meet the extra care fees if she survived for longer than 5 years.
  • Constance had left as much of her money available to her family as an inheritance.
Care Fees - Conker for Chestnut Financial Services Limited

The value of care fees planning, pensions, and investments and the income they produce can fall as well as rise. You may get back less than you invested.

Photo of Emma Francis, Office Manager, for Chestnut Financial Services Limited

Please Get In Touch

We always look forward to speaking with our clients.

You can telephone our office on 01522 788887.

Or you can email us - our address is ian@chestnutfs.co.uk

Logos for Chestnut Financial Services

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Chestnut Financial Services Limited. Registered in England no 9918363. Registered office: 10 Newark Road, Bassingham, LN5 9HA. Authorised and regulated by the Financial Conduct Authority No. 840940