There are many things to consider when paying for care. Trish Venables, Senior Solicitor in the Wills, Tax and Probate department explains some of the more problematic issues that are being faced.
Many clients are being pressured by social services to sign contracts with the care home when the parent goes into accommodation. We are warning our clients to beware when signing care home contracts on behalf of the resident in the capacity as next of kin rather than Attorney or Court of Protection Deputy. When signing as next of kin rather than on behalf of the resident in the capacity of Attorney or Deputy, if the resident runs out of funds and are assessed for contribution towards care by the local authority then any top up fees by the home will be payable by the next of kin. They cannot use the funds of the resident for top ups once the local authority are assisting with payments. With the elderly population living longer it often means that the resident's children are of a pensionable age themselves and may not be in a position financially to meet these top ups. If they sign in the capacity of attorney or Deputy, they will not be personally liable.
Another issue to consider when signing contracts where family are prepared to meet the top ups personally (third party top up), is to ensure that the contract provides for an increase in the top up payments to be agreed by the third party top up payer. Often the contracts leave it open to increase the top ups without prior agreement of the third party top payer. This means that they will have to pay any future increase without entering into a further agreement to these top up fees.
When a resident is in nursing care, they must ensure that the resident is reviewed at least annually if they feel that the resident's care is nursing care rather than social care. They may meet the criteria for NHS continuing care funding and have the fees paid for by the NHS Primary Care Trust. Often residents only have their nursing care contribution from the local authority reviewed and they are not considered for assessment, or more often the case is that the assessor states the resident is "stable and does not require complex medical care". If this is communicated to you do not accept this assessment.
When paying for care there are certain investment assets that are classed as a disregard for paying for nursing care, namely investment bonds with 101% life assurance included in them. If these investments were taken out at a time when the resident did not envisage requiring residential care then they cannot be treated as a capital for paying for care and will not be treated as a deprivation of assets by the local authority.
If you wish to enquire about any other issues surrounding care fees, or if you have any other wills, tax or probate enquiries please do not hesitate to contact Susan Comrie, Trish Venables or Richard Neea at Enoch Evans LLP. Please call (01922) 720333 or email ee@enoch-evans.co.uk.
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