Financial advice on funding elderly long-term care

We all need a little unbiased, expert advice from time to time, and there’s no more important time than when you’re working out how to pay for long-term care – for yourself or a loved one. Read on to find out what an independent care-fees adviser can do for you, how they are paid and how to go about choosing one that’s right for you

The role of an independent financial adviser

There are independent financial advisers, who focus specifically on care funding advice, often referred to as specialist-care-fees advisers. They are regulated by the Financial Conduct Authority (FCA) and must stick to a code of conduct and ethics and take shared responsibility for the suitability of any product they recommend

Unlike advisers who are tied to particular providers, specialist-care-fees advisers can offer advice on products from across the whole market

Specialist-care-fees advisers have particular qualifications (CF8, CeLTCI) that demonstrate their understanding of the many issues you may have to consider when it comes to funding long-term care

A specialist-care-fees adviser will go through a fact-finding process with you to assess and understand your parent’s needs and circumstances.

This will include questions about:

• the level of  care needs
• the care that’s currently available and what care will be required in the future
• the potential cost of nursing care or the care home you’ve chosen
• current income (including unearned income) and benefits
• your marital status
• the location of family and friends
•  assets, in particular shares or other investments liable for Capital Gains Tax
• property ownership
• liabilities that could reduce the value of your assets or your estate, and
•  attitude towards risk.

They’ll then make recommendations about financial products and services that are suitable for your parent, which they’ll put in writing.

Why might you need a specialist-care-fees adviser?

You’re not obliged to get professional advice when choosing how to finance your long-term care, but in most cases, it’s crucial to do so. A specialist-care-fees adviser should help you find a means of funding your long-term care that is:

• suitable for your parent’s needs
• affordable both now and in the future, and
• compatible with your parent’s attitude to risk and their financial priorities.

Some self-financing options are quite straightforward, while others are much more complicated. A specialist-care-fees adviser will help you to compare all your options before deciding which one’s right for your parent

They will also be able to explain all the costs and risks involved with each product, and should be able to help with other things too, like arranging your will or a power of attorney

Your rights when you get advice

If you do take advice and later find that the product wasn’t suitable for your parent’s circumstances (for example they were sold an investment bond with early withdrawal penalties when they were likely to need access to  money in the near future), you could have a case for mis-selling and receive compensation

Every specialist-care-fees adviser will have a formal complaints procedure (you’ll probably find it in their Terms of Business when you first sign up with them) but ultimately, you’ll also have the protection of the Financial Conduct Authority

What will it cost?

The fees of an independent financial adviser can vary widely depending on where your parent lives, the complexity of their situation, and the level of advice and types of products they recommend

In some cases, your parent could pay between £75 and £250 an hour for their services, so it’s important to make sure you ask up front how much their advice is going to cost, and whether it’s commission, a fixed fee, or based on the time they spend working for you

You could ask the adviser about splitting their fee into a number of instalments, or paying an hourly fee at the end of each consultation

Since the end of 2012, financial advisers have to be much clearer about the type of advice they give you and follow new rules on how they charge. They also have to make it clear whether the advice they are providing is independent

New rules for financial advisers from 2013

myageingparent has teamed up with Grace Consulting to offer you expert care advice

Grace Consulting provides affordable fee-based independent advice to help you choose the best care option to suit you and your relative’s needs and wishes. Our Care Advisers provide the knowledge and support you need to make the right decision for you and your family. myageingparent.com is partnering with Grace Consulting, the UK’s leading provider of personalised independent care advice, who, for over 40 years, has specialised in finding the best possible care for older people. Please note this is not an Age Concern or Age UK service.

Call now on 01483 209626 to get the help and advice you need at our preferential discounted rates

Or fill in the form and we will contact you,

This article is provided by the Money Advice Service.