Specialist service helps the elderly to protect their savings when going into care

As the trend for living longer and needing residential care increases, the Lancashire based independent financial services group True Bearing are helping the region’s elderly protect their savings to ensure a secure future for themselves and their families.

Increasingly individuals run the risk of the proceeds from the sale of their property, and other saved income, not being able to meet the cost of self-funded residential care indefinitely. In such cases elderly people may be forced to go through the trauma of finding state-funded care alternatives and losing all the savings that were planned to distribute amongst their families.

Mark O’Neill, Director of True Bearing explains a typical situation:

“Our client is a widow, aged 92; she is frail and suffers from dementia.  She lives in a residential care home as a 'self-funder' and has done so for over a year.  Her income is £8,200 per year state pension and attendance allowance. Her assets amount to a rapidly dwindling £94,000 in a bank account (her house having previous been sold).

Her objectives are to secure the funding of her care home to ensure the best quality of life and preserve the capital of her estate to eventually pass on to her family.

We began by assessing the costs of the client’s preferred residential care. The income from the state pension and interest from savings did not cover the total cost so we had to look at the £94,000 in capital. We ‘topped up’ the monies available for care with an Immediate Care Plan at a cost of approximately £24,000. This helps so ensure that all residential care fees would be met for the life of the client.

As the state pension was used towards these care fees our client needed to replace this regular monthly income. We invested £62,000 to provide an income of £150 per month, whilst still giving the capital chance to grow for eventual inheritance. Finally, the remaining £8,000 of savings was left in an interest bearing ‘easy access’ account for contingencies.”

Immediate Care Plans are proving as popular with the Private Care Home sector as they are with the elderly as they ensure a predictable continuity of income from their clients. Payments to care homes are exempt from tax and keep track with inflation.  The can also include capital protection to ensure that a minimum amount is paid out or returned to an individual’s estate on death.

Mark O’Neill, Chartered Financial Planner promotes his Care Fees Planning Service through numerous members of the Lancashire Care Association and comes highly recommended.  Initial meetings to explain the options available to clients are without cost or obligation and often seen an invaluable introduction from a care home.

To see how this local service can benefit your organisation, please contact Mark directly on 01257 260011, 07974 949724, or mark.oneill@truebearing.co.uk

“I have recommended Mark O’Neill of True Bearing to my residents and their families for several years.

I view the specialist Care Fees Planning advice that he provides as a valuable service that I can offer my residents, and anyone we encounter with financial concerns.

I have been particularly impressed with the very professional, highly qualified and independent advice that is provided.

I would not hesitate to recommend Mark to anyone wishing to plan for privately funded care fees, and to safeguard their assets. We have received excellent comments from clients who have already been assisted”.

Mr G Hill, Director, Lancashire Care Association
Owner, Cornmill Nursing Home, Garstang