Hi folks I just thought I’d share some useful info with regards to the hot topic of long term care. It is clear that this is one issue which is causing a great deal of debate amongst our policy makers and is causing great concern amongst a great many of you. The following is an article written by my colleague Tony Rosenbaum which appeared in The Scotsman newspaper on Saturday 20^th July. If you have any concerns in this area please contact us at the free phone number given above.

Each week, The Scotsman gives you a top ten guide to pertinent financial issues. Facing up to the fact that an independent elderly relative can no longer manage on their own is probably one of the hardest things we will ever have to do. Tony Rosenbaum, an adviser at Integrity Financial Solutions in Dunfermline, offers his tips on helping a relative make a seamless transition into long-term care.

Watching elderly relatives struggle isn’t easy, but help is at hand when it comes to care

1 DON’T BE OVERLY RUSHED If a relative is in hospital pending discharge into a care environment, don’t be rushed by the staff into moving them before you have put the necessary steps in place. It’s true that once there is no longer a medical need for them to stay the staff are only doing their job asking them to leave, but there is also their entitlement to be discharged to a suitable environment.

2 EXPLORE ALL THE POSSIBILITIES Once you know they can no longer live independently, you need to adopt a level of pragmatism – not easy, I know. Would they be better off in a care home, where they will have the chance to meet other people and forge new friendships? Or would they be better staying in their own home with a live-in carer and still enjoy being part of their own community? Sadly, their medical condition may dictate the care situation.

3 MOVING INTO A CARE HOME Entering a care home can be the best solution for many people, and in fact about 100,000 people have to do this for the first time each year.

Draw up a shortlist of potential homes and, before you settle on a suitable place, take the time to visit each home on your shortlist, preferably unannounced and use a check-list such as this one as your guide – www.symponia.co.uk/chooseahome.php

4 CARE AT HOME Most people like living in their own homes. The familiar and comfortable surroundings provide the happiest environment and this does not change as we become older and/or we have a disability. Would your relative be happier in their own home? Is it possible for them to cope? Care at home can be divided into hourly care, where someone comes in at predetermined times to help out with rising, retiring, mealtimes and some personal care. Alternatively, a live-in carer could be hired, giving constant reassurance that they will have someone with them at all times.

5 LEGAL AUTHORITY TO ACT If you and/or other members of your family want to look after a relative’s financial affairs and they are able to give their consent, the best and most effective way to do this is through a Continuing Power of Attorney. This is a legal process whereby the relative gives permission for one or more people to act and make decisions about their finances on their behalf.

6 SEEK SPECIALIST FINANCIAL ADVICE Someone with savings and other capital (which could include their house) over the maximum threshold – currently £22,500 – will be classed as a self-funding resident. Whatever the situation, they will have options and, to help you explore all of these, you should engage the services of a specialist adviser at the earliest opportunity. If you don’t have one, Symponia, the national professional body, can introduce you to a member local to you. The emphasis of all Symponia member advisers is on respect and care, with the fundamental objective of enabling people to choose where they are cared for, with the peace of mind that they will be able to meet rising care costs indefinitely.

7 CLAIM ALL LOCAL AUTHORITY PAYMENTS Personal Care Allowance is currently awarded to anyone in a care environment (at home or in a care home) and is currently paid at £153 per week. Someone also needing nursing care should be entitled to receive £69 a week in Nursing Care Allowance. Both these payments are subject to an assessment, which needs to be arranged with your local authority social work department.

8 WHAT ABOUT PROPERTY? If the decision has been made to move a relative into a care home, it may be that selling the property to fund the associated care fees is the only option. While it is a time fraught with emotion and memories, the decision to sell is probably the right one.

But, at such a difficult time, whom do you trust to sell your property for you? Companies do exist that are dedicated to the needs of elderly homeowners moving into care. These specialist companies can provide a simple, tailored service to fit your needs exactly.

9 IS THERE A WILL IN PLACE? Having an up-to-date will is the only way a person can be sure that their estate is distributed in accordance with their wishes. If a will is not in place, or incorrectly drawn up, then the fairly strict rules of intestacy will apply to the estate.

These can be considered harsh and could be completely at odds with a person’s real wishes. The need for care provides an ideal time to make sure that a will is still current.

10 HAS A FUNERAL BEEN PRE-PLANNED? Often known as the last taboo, but as death will happen to each and everyone of us, nothing is more certain.

Some people wish to plan their own funerals a long time in advance while they are still relatively healthy, while others find the thought just too macabre.

Hi everyone,

today’s article is about getting a little love back from the Taxman.

If you’re a business owner, highly paid director or even just an employee who wants high levels of life cover, you could be paying more tax than you need to.

An innovative new product from insurer Bright Grey called “a Relevant Life Policy” provides death in service benefits on an individual basis no matter how small your business is.

What Are The Benefits?

Whilst the company pays the premiums, they would not normally be treated as a benefit in kind and therefore, not assessable to income tax. This represents a significant saving, if you are a higher rate tax payer. (That would be nice – the taxman helping pay for your Life Assurance, don’t you think?).

An additional advantage for high earners is that the lump sum benefits do not form part of the employee’s annual or lifetime pension allowance, which is 1.75m in 2009/10.

These payments may be treated as an allowable expense for the employer in calculating their tax liability, as long as the local tax inspector is satisfied they qualify under the “wholly and exclusively rules”.
Provided that the appropriate discretionary trust is used then benefits can be paid free of inheritance tax.

How Much Cover Is Allowed?

• The minimum term is one year and the maximum term is 40 years or to age 75 if earlier and must be paid as a lump sum.
• Only death benefits can be provided.
• Maximum cover is 15 times the employee/director’s remuneration. This is equivalent to providing up to 4 times salary as death in service benefits and up to 11 times as a lump sum to buy an annuity as an alternative to a widow’s or dependants pension.
• The maximum benefit is £5m and for sum assured over £1m a financial questionnaire is required.
  Benefits must be paid through a discretionary trust and beneficiaries are normally restricted to family members and dependants.

Conclusion

This could be a very attractive proposition for some and to some extent it makes up for the loss of pensions life assurance, which was banned by the government when it proved too popular.

Whilst Bright Grey is the only provider to offer standalone RLP so far, I would certainly expect others to follow which would make it even more attractive cost wise. The combination of innovation, simplicity, tax efficiency and Bright Grey’s service makes this a very attractive proposition.

If you want to know more about this type of policy and whether it’s suitable for you, then please contact me on my free phone number – 0800 321 3508 or drop me an e-mail.

Sometimes simple things only become obvious when we look closely.
87% of people would prefer protection over and above that which simply pays off their mortgage according to new research conducted by Bright Grey in May earlier this summer.

When the main wage earner dies mortgage protection will remove the burden of the mortgage debt but it will not deal with the rest of the financial headaches a family will still need to face on an ongoing basis.

However the research findings reveal that only 33% of parents actually have life insurance over and above the mortgage.

So here’s something you can do which is a little different yet can really bring a whole lot of peace of mind.

By paying just a little extra each month you can take out a Family Income Benefit policy which help ensure that you don’t have financial worries on top of all the other stress that a sudden loss will inevitably bring.

Here’s how this simple but very effective little product works…

Family Income Benefit pays out a monthly income on the death of the insured until the end of the policy term chosen at outset. If a client (male) insured themselves for £20,000 a year over 20 years then he would have £400,000 of cover from day one. If he died one year into the policy he would have £380,000 worth of cover. The good news is that for a little extra you can protect yourself against inflation and index link your cover too.

*An Example

• The mortgage debt is £120,000
• Monthly repayments cost approx £810 each month
• Net income is £2440 each month
• Life cover for the mortgage pays out, saving the family £810 each month
• The monthly income shortfall amounts to £1630.

Most families would find it very difficult to make up a shortfall of this size every month.

Whilst the family might not need all of the £1630 it is likely that they will need some form of regular income.

Adding Family Income Benefit of £1250 each month would only cost the client an extra £8.13 a month on top of their £120,000 lump sum life cover. Whilst it is not a huge amount of money, it could be the difference between having to perhaps sell the family home or not.

It’s a very simple product, yet very effective – and that’s it’s beauty.

If you’re one of the 87% who need more than just getting your Mortgage paid but you could foresee a need for a regular hands free income too, then Family Income Benefit could be a good fit for you. Give it some thought now – when you don’t have to, so you or loved ones can rest easy should the need ever arise (God forbid) in the future.

* Based on male age 30 next birthday, non-smoker when added to £120,000 lump sum Life Cover with Bright Grey.