The Truth About Planning For Care Fees and Inheritance Tax.
The Ugly Truth About Care Fees Planning
Five Things You Need To Know About Care Fees
My parents hit their mid 70’s with no formal plans in place, their pensions kicked in at 65 and they have had a very happy and healthy life, still living in the family home and still very much in love. Of course health wise I never expected them to start getting frail so quickly, and as is normal it was Dad who got worse first.
None of us are ever sure which one it’s going to happen to first, but we must try and plan for every possible outcome. I know it’s difficult, and it’s an even harder subject to bring up with our family – but bring up we must.
Nothing prepares you for it when it does come, and there is little truthful information out to there to help much like you, my wife and I were muddling through piles of information when it happened to us.
It also doesn’t help when you read some of the specialist websites because many of these report different things, and then there are the conflicts from Adult Social services who often seem determined not to help you.
We have personally found that Social Services are not helpful at all; indeed have been told that “they are not advisors or consultants and are not concerned about preserving any funds” it’s only the care of the person needing the care.
And then you could spend days looking for the right answer only to miss one or more important points which then means any tentative plan you have, fails.
When we made the first calls to Social Services, they made some sense, but actually getting them to take action was damn difficult– with at least three departments involved it was proving to be a frustrating exercise.
Despite my twenty eight years of financial services bureaucracy I was not prepared for what was coming next, confusion and complexity faced us.
This is one of reasons I started to tour the South East with a series of workshops outlining the truth about what really happens when parents need more than a bit of shopping and a cleaner and when there is an industry waiting to convince you that they have the solutions – when they don’t.
You are never sure which one it’s going to happen to first, but you must plan for every possible outcome. I know it’s difficult, and it’s an even harder subject to bring up – but bring it up you must. Inheritance tax and care fees should be on the tip of your tongue until you understand and know how they will affect you and your family.
These are your major considerations..
What happens if one or both of your parents needs long term care, either in a nursing home or just care because they are frail. Simple things like cooking and cleaning can be a real problem.
Is there anything that can be done to reduce a liability? What are your options.
Also, what happens to the things they own, their pensions, their house and other investments if they do die or if they live for longer than expected.
These Are Difficult subjects.The main considerations are care fees and inheritance tax – who pays and who doesn’t and how can you legally reduce a liability to them without falling foul of the law, and without being accused of deliberate deprivation.
Beware Of The Snake Oil Salesman and The Shiny Suited Liars. One of the big problems is that there are plenty of ‘scammers’ out there offering solutions that will never work (at best) or at the very worst are plain scams, they base their scams on complexity and deceit, which is why I have spent the last four years providing education and knowledge instead of selling products.
You require a slightly different structure and a forward plan, and not most definitely not a one size fits all product.
The sooner you get started on this problem, the easier it will be. Knowing what your options are now will ensure that when the time comes, you can have a stress free move in plan a or b. Whatever you decide based on what you know.
Below is part of a press release I sent to Horsham, Crawley and East Grinstead Elderly Groups earlier on the year, when there is was a highly targeted campaign by two firms. Both were offering plans that could never work and charging a small fortune for them.
It’s clear that with record house prices in the South East, and the Government collecting more and more inheritance tax, and it’s insistence of changing the rules every so often (2014 Care Act) this problem is not going away soon.
Like you I was concerned for my parents, and I am a qualified financial consultant with over twenty eight years experience in this area of personal planning. It’s for that reason I have been managing an education program with everyone I have met over the last couple of months.
I have been presenting this information at over 50’s groups across the county, and here is what they said.
You and I both know that death is not an option, and nor are the taxes that arrive with it, and the 2014 Care Act brings a similar threat when half dead or at least not coping.
Problems arrive when you consider what to do. Which is where I can help. I have no products to sell you, just simple face to face consultancy for a fixed fee – and a complete money back guarantee.
You may be looking for a magic wand to help solve some of the problems for you and I can’t promise that, but I can help you with a number of proven solutions – and the sooner these are discussed the easier/more efficient things will be for you.
You and I can look at exactly what can be done, what’s safe to do and what is tested. You are then free to set things up by choice, on your own terms.
But, and this is a big but. You have to act on this. If your parents [or you] have assets in the form of a house that is worth more than £30,000 (thirty thousand pounds) and are still alive, and if you are remotely concerned about making sure the maximum amount of money is passed down then you need to consider this today – before it’s too late.
As I mentioned above, no magic wand, just honest and truthful help without having to sell you something.
I don’t even want you to make a decision today, all you need do is send me your email address using the box below, and some more information will be sent. I’ll follow this up via email (no one will call you) over the coming couple of days – when you are ready we can arrange to meet or you can pop along to one of the open events being held in September/October (there is nothing to buy at these events).
Whatever you decide, doing nothing is not an option. If you own your own home or if your parents own their home; then at least one of these things will be of concern.
Even if you decide to act on this but not through me, that’s fine and I fully accept that. But you do need to act, and you need to do it today.