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Bulletin 2010 Jan

Bulletin 2010 Jan

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Published by gmiguk

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Published by: gmiguk on Jun 17, 2010
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the remainder for theeventual inheritance that somany older people wish toleave.We would like to focus thisquarter on our sister com-pany carefeesadvice.comwh
are here to help youthrough the maze that isthe care system in theUK. Whether you are plan-ning a long term stay in acare home or having carerslive with you at homewe trust that you will findall the help and information you need.
See our article inside onpage 2
As our older population in-creases so does the numberof older people who owntheir own homes and conse-quently fail the means testfor care and have to payfor it themselves. In factthe most recent researchby the Liberal Democratsstates that 70,000 homesare sold each year to payfor care. Despite this veryfew people seek profes-sional advice on what isprobably one of the largestfinancial commitments theyhave ever made - payingcare home fees.Whether you are beingfunded by the State orpaying privately for yourcare there is much to knowto ensure you get what youare rightfully entitled to inthe way of local authorityor NHS or welfare bene-fits. There are also spe-cially designed financialproducts that can under-take to meet the shortfallin income to cover the costof care at the outset oftenrequiring just a part of yourcapital to be utilised tomeet care costs releasingImagine the headlines:ENJOY A TAX FREE IN-COME OF 6%SUPER ISA GIVES 30%TAX RELIEF;TAX-FREE INCOME FROMDIVIDENDS ANDFREE FROM CAPITAL
 If those were the headlinesthen I'm sure we wouldhave investors beating apath to our door.Read further important
information regarding VCT’s
see page 4
Caring for our loved ones.
Care Home Fees
Care HomeFees
VCT Cont’d
Our commit-ment to you
Venture Capital Trusts
Bulletin 2010
Care HomeFees
Care Home Fees
We have recently joinedforces with another FinancialAdvisor, Tom Scott, who isdirector of :carefeesadvice.comTom specializes in Care HomeFees and is here to help youthrough the maze that is thecare system in theUK. Whether you are plan-ning a long term stay in a carehome or having carers livewith you at home we trustthat you will find all the helpand information you need.Everyone's situation is dif-ferent and the solution thatis correct for funding theircare will depend upon a num-ber of factors.carefeesadvice.comcan puttogether a report specificallyfor you. The report will beposted or emailed to you andwill contain the following:1. A summary of your personaland financial situation 2. A calculation of your fund-ing shortfall 3. Details of the help andbenefits you should be enti-tled to from the state 4. A summary of other items you may need to consider,such as selling a property,writing a will, etc 5. A number of different so-lutions for funding your care 6. A projection of how yourfinances may look in the fu-ture, based on the solutionsavailableYour Report...Your report is a valuabledocument. It will help youdecide the level of care thatis affordable and the bestway in which to fund thatcare.Advice ProcessThe report is provided aspart of the advice processand the report will be writtenby your carefeesadvice.comadviser after a telephonediscussion with you and de-tailed analysis of your situa-tion. The process is designedto be helpful, caring and in-formative. Even if you decidenot to proceed with any ofthe options suggested, wethink you will find the processuseful.See a case study below toshow the help Tom was ableto give one of his clients.further £200 herself. Susansold Joyce's house for£150,000 and initially placedthe money on deposit at thebank. She quickly becameconcerned that the interestrate was very low and thatJoyce's money was beingspent rapidly.When we first spoke withAt age 93 Joyce realised thatshe was no longer able to lookafter herself. She appointedher niece, Susan as herlast-ing power of attorney who found her a pleasant carehome where she is happy andwell looked after.The care home costs £1,790a month and Joyce spends aSusan we checkedthat Joyce wasclaiming all thestate benefitstowhich she was enti-tled. Her pensionand higher rateattendance allow-ance totalled £710 a monthmaking a monthly shortfall of£1,280 between Joyce's
Case Study
Joyce's Story : Security in Care
 Help, Information and Advice logon to carefeesadvice.com 
Joyce's Story Cont’d
income and her expenditure.We wrote a report for Susancovering all of the variousways that Joyce's care couldbe funded. After much dis-cussion it was agreed that animmediate care plan(icp) andinvestments would be theideal solution.An immediate care plan pro-viding a benefit of £1,280 amonth for Joyce's lifetimecost £49,000. We included abenefit increase of 5% each year to meet the likely in-crease in the care home fees.A cautious investment portfo-lio was also put in place for£45,000 and the balance of£56,000 was placed in bankdeposits.Joyce says that the care planhas given her great peace ofmind. She no longer has toworry about running out ofmoney because her incometogether with the benefitfrom the care plan shouldmeet her care costs for herlifetime. It is also likely thatthe £101,000 that has beeninvested will meet Joyce'swish to leave her family aninheritance.Important Notes
Past performance cannot be seen as a guide to the future.The value of investments can fall as well as rise and you may get back less than was invested, particularly on withdrawal in the early years. Our case studies have been written to illustrate various aspects of care fees  planning. Although they are based on real clients the names and some of the de- tails have been changed.
 Help, Information and Advice logon to carefeesadvice.com 
‘This is a subject tokeep your eye on!’
es- pecially if you are an employer 
The UK is introducing a newpension called The NationalEmployment Savings Trust, orNEST.The National Employment Sav-ings Trust is a scheme that isaimed at low income workerswithout adequate retirementprovision. It is being rolled outby the Personal Accounts De-livery Authority, and should bein place by 2012.
The schemewill be run by employers.
 Employers will be able to setup their own qualifyingscheme, or make sure theirexisting schemes measure upto the required standard, but
in case they don’t have or want
their own scheme the Govern-ment have put in place a kindof default scheme that theycan use. That default schemewas intended to be called theNational Pension SavingsScheme (or NPSS) when itwas first proposed, but thatname got changed to PersonalAccounts (or PA) instead.
What’s just been announced
is that the name Personal
Accounts hasn’t made the
course and is being replacedwith a newer name; that newname is the National Employ-ment Savings Trust (or NEST for short).This retirement plan is beingintroduced because the Brit-ish Isles is facing a crisis inits pension planning. Over tenmillion people either have nopension, or an inadequatepension. And the nationalstate pension*is not going tohave enough money to paypensions in the future. Thisis because people are livinglonger than ever before andthere are not enough work-ers to support the pensionsof the elderly: governmentfigures show that averagelife expectancy in the UKrose by five years for menand four years for womenbetween 1980 and 2000.*
A politically contentiousstatement
—’all state pensions
are being paid from current
taxation’ argues Graham.
information isavailable fromtheGovernmentregarding 
‘NEST’ we will
update you

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