Including Paying for Care in the Care Providers

Including ‘Paying for Care’ in the Care Provider’s Take-on Process Providing the Very Best Help & Guidance to Self-Funders

Question 1 : What is the most expensive ongoing weekly purchase of our lives ?

Question 2 : What % of self-funding families get help with the issue of how to pay for care ?

Why ?

A Bit About CFG?

ABOUT CFG • A completely independent guidance service • A Not For Profit organisation • 100% Non-commercial • Free for families to use

Question 3 : What % of your self-funding residents will become state-funded this year ?

Making ‘Paying for Care’ Part of the Process 1. The Financial Assessment or 2. The Financial Healthcheck

The Financial Assessment

The Financial Healthcheck

Care Funding – An Overview

Do you own assets of more than £ 23, 250? Community Care Act 1990

The Financial Problem Income Care fees - £ 60, 000 Income - £ 15, 000 Gap - £ 45, 000

The Financial Problem Assets Bank - £ 20, 000 Investments - £ 30, 000 Property - £ 250, 000

So many questions. . . • • • State Benefits Home nation differences Splitting of accounts Continuing care Section 117 care Temporary stays • Shared beneficial ownership • Property disregards • Gifting, deliberate deprivation & the notional capital rules • Substituted decision making • Trusts

CRAG V’s Statutory Guidance

Does everybody have to pay for their Care?

Case One: Mr Jones is 86 and is about to go into residential care. He has £ 180, 000 property which he owns outright. Also has £ 9, 000 in the bank. His wife will continue to live in the property. Q. Will he be self-funded or State funded?

Case One: Mr Jones is 86 and is about to go into residential care. He has £ 180, 000 property which he owns outright. Also has £ 9, 000 in the bank. His wife will continue to live in the property. Q. Will he be self-funded or State funded? A. State funded Property must be excluded from means test if spouse or partner lives there

Case Two: Mr Jones is 86 and is about to go into residential care. He has £ 180, 000 property which he owns outright. Also has £ 9, 000 in the bank. His 60 year old brother will continue to live in the property. Q. Will he be self-funded or State funded?

Case Two: Mr Jones is 86 and is about to go into residential care. He has £ 180, 000 property which he owns outright. Also has £ 9, 000 in the bank. His 60 year old brother will continue to live in the property. Q. Will he be self-funded or State funded? A. State-funded Property must be excluded if a relative aged 60 or over lives in the property

Case Three: Mr Jones is 86 and is about to go into residential care. He has £ 180, 000 property which he owns outright. Also has £ 9, 000 in the bank. His 45 year old disabled nephew will continue to live in the property. Q. Will he be self-funded or State funded?

Case Three: Mr Jones is 86 and is about to go into residential care. He has £ 180, 000 property which he owns outright. Also has £ 9, 000 in the bank. His 45 year old disabled nephew will continue to live in the property. Q. Will he be self-funded or State funded? A. State-funded Property must be disregarded if incapacitated relative lives in the property

Case Four: Mr Jones is 86 and is about to go into residential care for a few weeks whilst he recovers from a hip operation. He has £ 180, 000 property which he owns outright. Also has £ 9, 000 in the bank. Q. Will he be self-funded or State funded?

Case Four: Mr Jones is 86 and is about to go into residential care for a few weeks whilst he recovers from a hip operation. He has £ 180, 000 property which he owns outright. Also has £ 9, 000 in the bank. Q. Will he be self-funded or State funded? A. State-funded Property must be excluded where care is of a temporary nature

Case Five: Mr Jones is 86 and is about to go into residential care. He has no property. He has a joint bank account with his wife worth £ 60, 000. He contributed £ 9, 000 whilst his wife contributed £ 51, 000. Q. Will he be self-funded or State funded?

Case Five: Mr Jones is 86 and is about to go into residential care. He has no property. He has a joint bank account with his wife worth £ 60, 000. He contributed £ 9, 000 whilst his wife contributed £ 51, 000. Q. Will he be self-funded or State funded? A. Self-funded Local authority must divide jointly held assets by number of owners

Case Six: Mr Jones is 86 and is about to go into residential care. He has £ 9, 000 in the bank, £ 3, 000 in cash ISA’s and £ 50, 000 in a Prudential Bond. Q. Will he be self-funded or State funded?

Case Six: Mr Jones is 86 and is about to go into residential care. He has £ 9, 000 in the bank, £ 3, 000 in cash ISA’s and £ 50, 000 in a Prudential Bond. Q. Will he be self-funded or State funded? A. State-funded Life assurance investment bonds must be excluded from the means test

Case Seven: Mr Jones is 86 and is about to go into a nursing home. He has £ 70, 000 in cash. He has recently suffered a stroke which has left him with complex and unstable medical needs. Q. Will he be self-funded or State funded?

Case Seven: Mr Jones is 86 and about to go into a nursing home. He has £ 70, 000 in cash. He has recently suffered a stroke which has left him with complex and unstable medical needs. Q. Will he be self-funded or State funded? A. Who knows! NHS continuing care should be available to those with eligible needs

Paying for Care

Mrs Williams

Mrs Williams Has dementia and has suffered a recent mild stroke. Assessment team and family agree that she now needs a nursing home. Her income position is as follows: • • Care fees Income Benefits Shortfall - £ 45, 000 £ 11, 350 £ 8, 598 £ 25, 052

Mrs Williams Her capital position is as follows: • Cash in the bank - £ 12, 000 • Property - £ 350, 000

Mrs Williams The Problem: £ 25, 052 from £ 362, 000 = 6. 9% yield

Mrs Williams The 12 week property disregard

Mrs Williams Options:

The Deferred Payment Scheme Does everybody have to pay for their Care?

Renting the Property Out

Use Equity Release

Assets into Cash

Use Investments Does everybody have to pay for their Care?

Care Fee Annuities Does everybody have to pay for their Care?

How Care Fee Annuities Work Care Fee Annuities Does everybody have to pay for their Care?

DELIBERATE DEPRIVATION

And Now For Something Completely Different. . .

The Care Act

Care Act - Headlines • Financial aspects come into force in April 2016 • Single criteria for eligibility • New upper means test of £ 118, 000 • New lower means test of £ 17, 000 • Vastly increased tariff income • Cap on care costs of £ 72, 000

Care Act - Headlines • Financial aspects come into force in April 2016 SH LV eligibility • Single criteria. Efor ED PE • New upper means test. RM of. A£ 118, 000 NE NT • New lower means test of £ 17, 000 LY • Vastly increased tariff income • Cap on care costs of £ 72, 000

Thanks for listening

Any Questions?

CONTACT DETAILS Email: owain. wright@carefundingguidance. org Mobile: 07595 600884 Helpline: 0800 055 6225