Deliberate deprivation
Does anybody have any thoughts, rules, yardsticks or processes relating to the above and nursing home fees?
The client in question is downsizing and is concerned that the cash released will all be soaked up by fees even though she is not going into care at this stage.
Thanks
Andy
Comments
If the fees are in relation to the cost of moving then I don't think this will be seen as deliberate deprivation. If however, she was using the surplus to buy a Lamborghini the local authority might take a different view. Also if she gifts a large sum of money it is likely that this would be looked upon unfavourably.
If she is releasing equity and using that to pay care fees there has been no deprivation.
How soon is the care anticipated? If it is just "at some point in the future" then making gifts or other planning to address other legitimate objectives (such as an IHT bill) and the advice is approached and documented as such then again no deprivation (albeit local authority may question if she enters a care home shortly after and approach will differ from authority to authority).
.....but if she just does not want to pay care fees and dumps the cash then it will be.
My question to clients on this point is that I understand they don't want to pay care fees but do they really want to spend the last years of their lives in a grotty, sub standard care home paid for by the council - or would they rather pay a bit towards it to get the care and comfort they would like. And if the former then when push comes to shove will their kids (if they have them) end up footing the bill as they will not want to see the client in a less than the best environment..... so why not just build care fees into the financial plan.
Thanks for the replies.
I don't know very much on the case as its a new inquiry. What I do know is that it is a widow in her 80s who is releasing cash by downsizing. There is no imminent need to go into care (if there was, why downsize only to sell again in 6 months?) and I have no idea what other assets she has. I'll tell the adviser (again) that this is too little information to give a solid opinion on but give some guidelines that might help.
Hi Andy,
This might be useful to pass on to the adviser.
But I also suggest signing up to Care Box Online as they are a great resource for questions like this. First month is free and you don't need to put in any payment details to get access.
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