Article

COPING WITH A VERY SAD SITUATION - LONG TERM CARE
- August 2008

By Helen Kanolik - (Heliting Financial Services Ltd)

Address: Beacon House, 15 Christchurch Road, Bournemouth,
Dorset, BH1 3LB
Telephone: 01202 551 664
Fax: 01202 405 483
E-mail: helenkanolik@heliting.com
Visit our Web Site: www.helenkifa.co.uk

When you realise that you can’t look after yourself, the situation is very sad and stressful. You are ill or frail, your family is very worried, and there are lots of complicated new things to deal with.

The Local Authority will be assessing your health, your care needs and your finances. You may have to give someone else the power to act on your behalf and deal with your money. You may be adjusting to the idea of living in a residential care home, and your house may be on the market.

Your first priority will be to pay for care for as long as it’s needed. After that, leaving as much as possible to your family (or other beneficiaries) will be a major concern.

Specialist advice on getting all the State benefits you’re entitled to, minimising tax and helping your money to last as long as possible, can take a load off your mind.

STATE AND LOCAL AUTHORITY BENEFITS

If you are still in your own home, you may be receiving help there, plus special equipment or modifications such as ramps. The benefits you receive can change with your age or circumstances.

If you have a partner or spouse, you will also have to consider how the cost of your care might affect their situation.

Income Support, Pension Credit, Carer’s Allowance, Attendance Allowance, Disability Living Allowance and State pension – which ones do you qualify to receive? Which are means-tested, and if so, how?

Advice from someone who understands how these work could enable you to boost your income and receive more help.

PAYING FOR RESIDENTIAL CARE

There are several ways to pay for care. You might have enough State and other pensions to cover a reasonable part of the cost. Your investment portfolio might generate a high, tax efficient income. Or you might be appalled at the prospect of watching your capital go down each month, and prefer to look at ways of providing an income which is guaranteed for the rest of your life.

It is really important to have the options clearly explained, so that an effective plan can be put into place.

LEAVING MONEY TO THE FAMILY

The plan that you set up to pay for your care can also use legitimate ways of helping your family to pay as little tax as possible, and therefore inherit more from you.

The principles also apply if you are organising care for someone else who cannot do it for themself.

GETTING PROFESSIONAL ADVICE

The first stage in the financial advice process is to discuss your requirements and feelings about money, in order to assess which options might be suitable for you. Then it’s a case of analysing the current situation, and researching to find the best route for you.

I explain everything to you as we go through this process, and help you to understand the pros and cons of each choice you have to make. Then I put it all in writing and give you time to consider and ask questions. Finally, I help to put everything in place as conveniently as possible – my goal is to help take the burden off your shoulders.