Mrs Alice Carter - A real case study
"I first met the Carters’ in February, they had been referred to me by a local care home, and they were anxious to sort out the continued care fees for Mrs Carter, who at 83, had been living at home until just before Christmas, when some memory loss and a series of falls necessitated a stay in hospital, and although her health improved slightly, her family did not believe that she could continue to live safely in her own home."
The family found a care home that they were all happy with and Mrs Carter moved in for a trial period, it was just after this stage that I met with them, and during the complimentary first meeting we discussed their wishes and objectives.
Firstly the family wanted to make sure that Mrs Carter could stay in this home for the rest of her life, and secondly they wanted to make sure that she didn’t worry about her money. Mrs Carter herself also had concerns, she really wanted to leave some of her money as an inheritance to her family, and she was really worried that her care bills would prevent this wish.
Local Authority help with care fees is rigorously means-tested and as Mrs Carter had over £21,000 in capital and income she would not qualify for any continued assistance.
The family placed the property on the market and by mid April they were ready to implement a structured financial plan. The important part of any care fees planning exercise is to establish several key points, making sure that the actual plan; the monthly benefit level and the premium method match each individual circumstance, and this was how we calculated Mrs Carter’s requirements:
| Capital | |
| House Sale & Savings | £140,000 |
| Income | |
| Including her Basic State Pension (with Age Allowance), Private Pension, Attendance Allowance and low level RNCC | £13,831 |
| Expenses | |
| Care fees of £527 per week & Incidental Expenses @ £20 per week | £28,444 |
This left Mrs Carter with deficit between her income and expenses of £14,613.
After the completion of the medical underwriting, I provided the family with a comprehensive report, which included several options, one of which was to do absolutely nothing, using the savings on annual basis, because the Carter family wanted guaranteed peace of mind and the reassurance that that the money should never run out they discounted this option.
Instead, and in order to achieve the peace of mind they craved, they purchased an immediate care plan for Mrs Carter, and this plan cost just £48,567.
The plan will pay the care home £14,613 each year (plus annual increases of 5%) for the rest of Mrs Carter’s life, the remaining capital of £91,433 was placed in a secure investment, which pleased Mrs Carter as she now knows that her family will receive the inheritance that she wished to leave them, and the family know that Mrs Carter should never run out of money, no matter how long she needed care.
£21,000 is based on the previous (2006/2007) Local Authority thresholds for England. This case study was written by one of our members and is a real case, although the names have been changed.
My Mum wants to stay in her own home; can we still take out a plan?
Yes you can, Immediate Care plans are just as practical for people choosing to stay in their own homes. The calculations will of course be slightly different, but the concepts and benefits are exactly the same.
Immediate Care Plans are also fully portable so should a person originally establish a plan to cover their care at home, and at some time in the future they moved into a care home the plan simply moves with them.