Long Term Care
The Problems To Be Faced
"The numbers of dependent older people in the UK are projected to grow from approximately three million in 2000 to approximately 6.4 million in 2051, an increase of 113 per cent."
Source: "Future demand for long-term care in the UK." (London School of Economics 2004. First published 2004 by the Joseph Rowntree Foundation).
"... those of us who have been lucky enough in our lives to have our own homes now, we are then faced, if we get to a nursing home: 'Right. You have a house? Right, we'll have that. You have £50,000 savings, we'll have that', and so all one's life one has paid taxes ..., and then suddenly the nest egg one has built up, either for yourself in retirement or for your dependants, is taken in order to pay for this long-term care."
Source: The Royal Commission on Long Term Care.
The Remedies To Be Taken
It was against the worrying background of the issues described above coupled with the frequency of situations being presented to which we could offer little or no effective remedy at the time, that we decided to add Long Term Care (LTC) advice to the services we provide.
When is the right time to start thinking about the care you may need in later life? Planning for an adequate retirement via pensions and other investments has almost become the norm. Indeed, it is an area in which we specialise.
But the need for LTC can blow an enormous hole in any plan for financial security.
Our research has revealed that the decision to make provision for medical and support services in the event of chronic illness or conditions associated with old age is one which should be taken with great care and consultation.
The practical and legal considerations surrounding this problem need to be considered by the family as a whole, almost certainly in conjunction with a specialist lawyer. And the earlier the better!
The first step is to ask yourself the following questions on the assumption you will need to provide for Long Term Care at some time in the future:
1) Is it important to me to safeguard my home to pass it intact to my heirs? (Yes/No)
2) Is it important to conserve other assets for the benefit of my spouse or children? (Yes/No)
3) Am I concerned whether a Local Authority Home would be acceptable? (Yes/No)
4) Would I want to stay in my own home for as long as possible? (Yes/No)
5) Am I concerned whether there would be sufficient income for both of us? (Yes/No)
If you can answer NO to all the above you probably have no need to consider matters further.
If you answered any with a YES there are a number of points that require further consideration, including:-
a) How much of the cost of care, if any, can be met from existing and potential sources?
b) How many people need to be considered and what alternative help may be available from family or friends?
c) Would you need to sell assets (eg. family home) and is this acceptable?
d) If you are likely to be caring for parents, is this a practical proposition? Should you consider effecting cover for your parents benefit?
e) Should a Power of Attorney be arranged in advance to make sure decisions can be taken when necessary?
f) Does your will accurately reflect your wishes if care costs reduce your assets?
g) Are your views reflected in an Advance Medical Directive (otherwise known as a Living Will)?
The level and type of care needs careful thought as this effects the costs and levels of benefit. For example, help with shopping and respite care is not as expensive as skilled care by qualified nurses in nursing homes.
Why not give us a call to see how we can be of help?
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