Why You Should Speak to a Care Fees
With average care home accommodation costing more than £27,000 a year , working out how to pay for long-term care is a major headache for many people.
However, a specialist care fees adviser can explain all of your options and help you make the best choice for your care. They should also be able to help with things like arranging a will or power of attorney.
Your adviser will ask you questions about your personal circumstances, such as marital status, current income and benefits, assets, property ownership and attitude towards risk. You'll then receive a recommendation on what action to take, and be advised on any state benefits you're entitled to.
If your finances are managed in the right way you're less likely to have to move care homes because you can no longer afford your existing one. The issue of paying top-up fees can also become a burden for your family, but a financial adviser can help you put provisions in place that mean you won't need their assistance.
When you're looking for an adviser, it's important to choose someone who's independent and has the relevant qualifications. They should also be regulated by the Financial Services Authority (FSA).
You will usually have a free initial consultation, after which you can decide whether to go ahead with the advice. Charges will then be discussed at subsequent meetings, and they must be put down in writing. Advice can be charged at an hourly or flat rate, or as a percentage of the amount needed to purchase any product or investment being recommended.
There are a number of strategies to help you pay for your care. These might include family assistance, borrowing or using your savings. A care fees adviser will be able to make your money work harder and longer for you by looking at other options including:-
You may be able to arrange your assets to produce a steady flow of income to pay for your care. If you were the only person living at your property you could think about renting it out. That way, you could still pass it on to your children. If you sell your property, the money from the sale could be invested in things like bonds, shares or ISAs that pay out regular returns.
You could also use your property to release equity. This may be appropriate if you have a spouse who is going to continue to live at home. Money released can be taken as a single lump sum or as regular withdrawals. You can use it to help pay for care directly or to buy an annuity, which will then pay out an income to help cover the care fees.
Another option is a long-term care plan, where you use a lump sum to buy an annuity, which provides a regular income to help fund your care fees for as long as you live.
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