Ask the Expert- Jenny Williams

Question- What can I do to prepare for the possibility of needing to pay for long-term care??

Answer- Firstly. I recommend you put a Lasting Power of Attorney (LPA) in place. This is a legal document which states who you wish to act for you if you become incapable of making your own decisions. A Health and Welfare LPA specifies who can make decisions on areas such as medical treatment, care options etc. A Property and Financial Affairs LPA details who can make decisions in areas such as selling your property, paying bills, operating bank accounts etc. It is very important that someone can arrange your finances to pay for your care, should the need ever arise.

An I.PA needs to be put in place before an individual loses mental capacity. If this is not possible, the alternative is for someone such as a family member, friend or legal professional to be appointed by the Court of Protection to act as a deputy. However. this is a more complex and expensive process so an LPA would be preferable.?

It is not possible to insure against the possibility of needing to pay for long.term care in the future, as pre-funded plans are no longer available.

However, some people may have existing plans, which are typically insurance or investment policies. If not, one option is to restructure any existing investments to produce the level of income and/or capital required to pay for care. Another option is to purchase an Immediate Needs Annuity, designed to pay an income for life, which can be used to bridge any gap between care fees and your existing income. You may wish to take advice on which option is most suitable in your circumstances.

Finally, it is wise to check that you are claiming all the benefits you are entitled to, You may be entitled to Attendance Allowance if you are over the age of 65 and have care or supervision needs due to a disability. This is a non means-tested benefit and can help towards the cost of paying for your own care.?

This article was originally published in the East Anglian Daily Times 12th September 2022.