Fiducia Wealth Management
Posted in Long Term Care on 22.07.15

The decision is in response to concerns raised by the Local Government Association (LGA) about the viability of the additional burden that the new rules would impose on already thinly stretched local authority resources. The LGA had highlighted that the funding gap in adult social care was growing by at least £700 million a year. The proposed cap on care costs and other measures due to be introduced from April 2016 would add an estimated additional £6 billion to public sector spending over the next 5 years, which is simply not affordable. It would lead to local authorities being unable to provide care and support to those that are most vulnerable and in need, instead being forced to provide services for those that could afford to meet their own care costs.

This is a bitter pill for many that have contributed to the state system all their lives yet find themselves faced with uncapped care costs in later life.

So what does the delay mean for those needing care?

Broadly speaking, under current rules anyone with £23,250 or more in assets is responsible for funding their own care. The rules are complicated, certain assets may be disregarded in some circumstances and income is also taken into account.

The delay in the introduction of the care cap does mean that those requiring care may face large capital costs over a number of years and the need to obtain appropriate, specialist advice is ever more vital to explore all the options including:

  • Whether NHS Continuing Healthcare may be appropriate (i.e. fully funded NHS care)
  • An assessment of all assets and which of those would be included in the means test
  • Appropriate investment management
  • Assessment as to whether an immediate needs annuity may be appropriate
  • Review whether all appropriate benefits are being claimed

As a SOLLA accredited Solla adviser, Sarah Travers has the specialist expertise to assist with all of the above and to provide support and guidance throughout the period of care. Please do get in touch if you would like to discuss your or a loved one’s situation.

If you would like to know more about how we as Financial Advisers can help you with your or a loved one’s Long Term Care needs and general latter life planning then visit the Later Life Planning section of our website: Later Life Planning  or send us email at: [email protected]

The information contained in our website is for guidance only and does not constitute advice which should be sought before taking any action. The information is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly, no responsibility can be assumed by Fiducia Wealth Management Limited, or any associated companies or persons, its officers or its employees, for any loss occurred in connection with the content hereof and any such action. Professional financial advice is recommended for every case.

Fiducia is a multi award-winning firm of Financial Advisers based in Dedham near Colchester situated in the heart of Constable Country on the Essex Suffolk border.

Fiducia Wealth Management Ltd. Dedham Hall Business Centre, Brook Street, Dedham, Colchester, Essex, CO7 6AD.

Fiducia Wealth Management Ltd. is authorised and regulated by the Financial Conduct Authority.. FCA No. 408210

Fiducia Wealth Management
Posted in Long Term Care on 22.07.15