Kent Solicitors

As our population ages, financial independence is becoming one of the growing concerns for retiring adults and their families, as well as our Government. People worry about paying Inheritance Tax but consider this - the Inland Revenue take 40% tax on assets over 312,000 pounds. (Tax Year 08/09) But you are dead! If you are taken into care, the Local Authority can take almost 100% of your assets. And you are still alive!

The National Health Service provides acute services usually in hospital which are 'free at the point of delivery'. But increasingly, patients no longer stay in hospital for recuperation. As soon as your condition has stabilised, you are discharged. Where do you go?

Home - To be looked after by caring relatives, who are prepared to sacrifice their earning opportunities, privacy and social life.

Private Nursing Home - If you can afford the 300-1,000 pounds per week, depending on location and amenities provided.

Local Authority - They can provide help in your home, at day centres or can buy-in beds from the private sector. The Local Authority provide a free assessment of your needs but target their resources where need is greatest.

If you need non-residential services, the Local Authority cannot charge more than it is reasonably practical to pay, but charging procedures varies from one Local Authority to another.

For non-residential services, there is a Means Test. If you have more than 22,250 pounds capital (which can, in certain circumstances, include your home) you will pay the standard fee.
When your capital is reduced below 22,250 pounds, other considerations apply. These are too involved for this fact sheet but it is not good news. A small personal weekly expenses allowance is given to meet the costs for clothing, haircuts, toiletries, treats and presents for relatives and friends!

The Local Authority can only assess the means of the person requiring care, not those of a spouse or partner.

It is not necessarily effective (or desirable) simply to give away assets and let time pass. The Local Authority will argue that you intentionally deprived yourself of assets and that the gift should be ignored.

Local Authorities, in this area of work, act in their own financial interests and are not out to advise you. Therefore you should take advice on the detailed rules as they apply to your present financial position and circumstances.

Whatever age you are, you should ideally plan for your old age. If you are over 50 and even in good health, you might appreciate a full 'wealth check' to encompass

Will
IHT planning
Lasting Powers of Attorney
Funeral Planning
Equalising Estates

Often, consideration has to be given to former spouses, children by first marriages, adopted or illegitimate children, family disputes. It is not sufficient to deal with the above areas in isolation.

For an initial discussion please contact Vanessa Adamson at Kaslers on 01622 844 607

Labels: Wills IHT Planning Estates Lasting Power of Attorney