Elderly Financial Advice - Help In Later Life

Later Life Advice from Prosperity Wealth

Financial Advisers who are SOLLA Accredited learn about the entire functioning of the support for people who need care or help at home. We understand how the local authorities operate, the benefits system, and the principles of NHS funding for care when it is available.

It is a minefield, families operate power of attorney for their loved ones and need advice as to what they can and cannot do.

People are discharged from hospital care and need to know what is available to them particularly if they were sectioned under the Mental Health Act.

We work closely with care providers, independent social workers and solicitors, to help families function through this time.

Every situation is different, so in each case we need to look at the home situation of the person needing care. Is the home shared with anyone? If shared with a spouse, relative over 60 years old, or a disabled relative, for instance, the local authority do not take the house into account when looking at assets, savings and investments to be used towards the cost of care.

Yet some questions seem common to most cases we see, I’ve set these out below with some commentary to help you see how things work.

What happens if we run out of money and my relative is already settled in a care home?

It’s a great idea (but few of us do it) to ask the care home, preferably from outset, if they allow residents to stay if this situation arises, and they are then funded only by the State.

There has been a case recently (Local Govt and Social Care Ombudsman vs Brighton and Hove City Council) where Social services moved a resident without assessing whether moving would harm her. A move should not be detrimental to the health, both physical and mental, of the resident. However, this is an area where legal advice should be sought if it arose.

As independent financial advisers, we can help you invest in a tax efficient with the least amount of risk to fund care costs. We will advise you at regular reviews if it is looking like the capital might deplete to a level where Local Authority involvement might be applied for. Obviously, we are working with a finite sum of money, so there will be a prognosis from the start as to how long that might last.

We will help you plan from the beginning and support you through the time you are paying care fees.

How do we ask the Council to pay for care?

You need to contact Adult Social Services to request a care assessment, then a financial review to assess how much they will pay.

Depending on where you live, there are limits, above which you are expected to self fund, these are as follows;

If you are going to opt for care in your own home, then the value of your house is not included in the above finance limits, this only happens if you enter residential care.

My relative didn’t make a power of attorney and they have dementia - what can I do?

A dementia diagnosis does not mean a loss of mental capacity (the ability as defined in law, to make decisions)

Your first step is to ask those who care for your relative what their thoughts are, and possibly the GP. You can order a mental capacity assessment through an Independent Social Worker who can assess and give written confirmation as to whether your relative can make a Lasting Power of Attorney.

If not, you have the choice of a Deputyship, or to become a Department of Work and Pensions Appointee (you are authorised to look after their benefits).

Again, you would need legal advice, but this is a starting point.

I want a care fees annuity (known as an INA- Immediate Needs Annuity) but I’ve been told you can only do this through a financial adviser- why is that?

Care fees annuities can relieve you of the burdens associated with creating a sustainable investment portfolio that will yield an income to pay care fees. You no longer have to be concerned about volatile markets, interest rate changes, or that you need the money for much longer than expected.

The annuity guarantees an income for life, tax free when paid directly to the care provider, with provisions agreed at outset such as regular increases to the income to fund care costs increasing, return of some of the original capital invested if you die.

The process of working out the best way to set this up therefore is not as straightforward as the product itself is, so to make it work best, an adviser suitably qualified is the only person allowed to set it up for you.

What do you charge?

We are transparent about our fee process.

Our fees start at £300 for a fixed fee interview on general care issues, and guidance.

“Regulated” financial advice (specific advice on investing) starts at £1500 and can be paid through the process of investing by the product provider.

We’ll give you an idea of costs at outset, and a fee agreement to sign once we’ve reached the point of starting chargeable work.