Is the crippling cost of care unfair?
In the Sunday Times recently there was an article about “The crippling cost of care is unfair”. That is true and worrying for many of our clients.
There are practical things to be done. It is important that income is maximised by claiming the relevant State benefits. Managing care costs can be made easier and therefore less expensive by having in place appropriate arrangements for financial support being given by family or friends – that can involve nominations, adjustment of access to accounts and Lasting Powers of Attorney. Fluent financial arrangements save costs.
The costs of care do fall arbitrarily on some rather than others. It is my view that in the current discussions about reform of the system a cap on the cost for each individual would be sensible, based on all of us in the society spreading the risk and sharing the total cost.
The government’s response to the Dilnot report is late and still awaited. The extent to which the government is willing to subsidise introduction of the new proposals is on the one hand unclear but on the other hand unlikely to be generous.
Private insurance arrangements are presently underdeveloped and unlikely to come more helpfully to the market while there is uncertainty about government policy. Some steps in relation to care fee planning have definite down sides – equity release and transferring properties at the last minute to avoid claw back are issues often raised with us by clients where in context we think that they are inappropriate.
Our advice is to be aware of the present environment and take appropriate practical steps.
For advice in relation to care or for more information, please contact me.
Mike Dyer
Partner in Private Client Team
mdyer@tyndallwoods.co.uk
0121 693 2222