Enabling the funding of Beryl’s long term care needs
02 December 19  /  Case Studies

At the age of 84, Beryl had been in and out of hospital and following a distressing fall, Beryl had decided to go into a care home to help with her immediate recovery. Beryl’s limited mobility meant that she was increasingly struggling to cope at home, but she had a sharp mind and her general health was reasonable, although like many within her demographic she was on medication for various health reasons.

Beryl’s stay at the care home was initially an interim measure as she recovered from the fall but with time, Beryl began to enjoy staying in the care home. Gradually, Beryl accepted that she would not be able to return home as a result of her mobility issues and increasing care needs.

Once this decision had been communicated to all relevant parties, Beryl’s home was put on the market.

Some years ago, Beryl had proactively established a lasting power of attorney for both health and welfare and property and financial affairs, meaning that her wishes would be protected and actioned by the designated attorneys.

It became clear that Beryl’s income and her state pension were not enough to cover her care home fees. As you could expect, this was causing Beryl to experience anxiety as she was worried she would not be able to afford the fees, which could have resulted in Beryl being forced to leave the care home. Our expertise was sought to help with finding a solution. Beryl had some savings but not enough to cover her long term care fees and although Beryl also had some shares, her attorney was selling these to meet the care home fees.

It was discovered that Beryl had a shortfall of £2,000 per month.

We began by checking that Beryl was claiming all of the benefits that she was entitled to receive. Beryl and her attorney were looking for the financial certainty of knowing that her care home fees and personal expenses could be met for the rest of her lifetime.

Importantly, Beryl’s appointed attorney fully understood Beryl’s wishes and concerns as these had previously been communicated and clarified between the two parties, so achieving financial certainty for Beryl was the key priority for both Beryl and her attorney.

By now, Beryl’s home had successfully sold and we began to explain how some of the funds from the sale could be used to protect her wishes by buying an immediate needs annuity, which is an underwritten annuity that takes age and health into consideration.

A one-off lump sum was used to purchase the annuity and as this income was paid directly to Beryl’s care home, it was free of personal tax.

We were also able to include some protection in case Beryl passed away early, which gave further financial peace of mind.

Beryl is now able to enjoy her time in her care home, safe in the knowledge that she does not have to concern herself with worrying about how her long term care needs will be funded. For Beryl, she was suddenly able to enjoy her time, free from the financial worry that had been with her since she first moved into the care home.

Next Article
A golfer’s dream
29 April 19  /  Case Studies