long term

Question 2

attendance

Answer 2

• people who pay fees are entitled to £73.90 of care needed in day or night and £1110.40 if both
• it’s tax free
• paid for by central

Question 3

local authorities and PEA

Answer 3

• Persoabl expenses allowance is the amount you are allowed to keep for yourself and can’t be used for care.
• PEA is £30.65 a week
• £14,250 - £23250 for means testing
• if between then each £250 of asset is assed as giving £1 a week of tariff income
• that means you will be expected to pay amount over /250 this will be the amount of pounds just over £500 would be £3 that they would be expected to provide a week

Question 4

what is counted home and pension

Answer 4

• 50% of personal pension can be considered as given to partner
• home can not be used if spouse there a resident under 18 or over 60
• home is disregarded for at least 12 weeks
• can also not be counted if the person there is proving care and has moved in

Question 5

long term care insurance

Answer 5

• can provide lump sum or regular bit there are no prefunded plans
• immediate sums are annuities that will pay for the care one change for a cash sum. Lower life expectancy the cheaper the amount. - if paid to person is taxed if not then tax free
• deferred - means that you pay for a few years then you get payment. ie self fund
• traditional insurance may pay for when you can’t do 2 tasks
• care cash plan one off payment or regular not being able to do 3 living things

Question 6

equity release

Answer 6

• special adviser
• lifetime of home renovation
• lifetime mortgage will give you cash and you pay a loan either fixed or variable. Variable may cost a lot
• home reversion means that you sell a portion . You still benefit from value going up but may pay rent either market or small amount - this cash can then be used as part of your ability to pay

Question 7

death benefit

Answer 7

• viatical settlement - sell your life policy to viatical for cash and in exchange they pay the premiums
• can have a benefit to pay on life assurance for a small amount

Question 8

payment

Answer 8

• remember that care will go up with national average earnings due to cost
• pattern of care will determine price
• payment due dates must be met to avoid paying extra
• timescale need cash flow
• too much cash gives rise to IHT

Question 9

POA

Answer 9

-EPA never used to be able to be revoked without applying to court of protection.
-LPa for health and financial
- they need to be given to office for public guardian and have safeguard so you have to be of sound mind and can revoke if you are