case study

The Client and Family – How They Funded Live-In Care

Clients and clients’ families are increasingly looking at alternative methods for both the type of care sought, and how to self-fund it. One of those gaining traction is live-in care funded through an Immediate Needs Annuity, otherwise known as a ‘Care Fees Plan’.

Our client aged 92, lives in Southgate, where due to his advancing years and increasing frailty, he made the decision ten months ago to receive hourly care from Home Care Preferred. Realising he required round-the-clock practical support and private care at home, he and his family decided to start receiving live-in care as of June 2015.

Being a self-funder, he and his family were conscious that his pension didn’t meet the full cost of the high quality care delivered by Home Care Preferred and they shared his fear that his lifetime of savings could be rapidly eroded. Consequently Home Care Preferred referred our client and his family to an independent adviser specialising in paying for care; Eldercare

Following the consultation, it was determined that an Immediate Needs Annuity or ‘Care Fees Plan’ for £173,377 was required in order to ensure that the care costs could be met indefinitely, and to ring-fence our client’s investment portfolio – something that was very dear to his heart.

The money for the Care Fees Plan was to come from our client’s property by releasing equity under a Lifetime Mortgage from Just Retirement, arranged by a specialist Equity Release Adviser with Age Partnership. The Lifetime Mortgage provided an initial sum of £185,000 to meet the cost of the Care Fees Plan and legal fees, plus to convert the downstairs cloakroom into a wet-room so our client could live comfortably downstairs. As a contingency, the Lifetime Mortgage included a cash reserve facility of £65,000, from which he could withdraw sums from as little as £2,000 a time if and when the need arose.

The outcome of this work was that our client and family gained the peace of mind from knowing that his care costs would be met for the rest of his life, enabling him to stay in his own home receiving high quality care from his live-in carer Charles Chiappini. Financially, it also meant that his savings would stay intact to leave to his family and that he did not have to sell his home and move into residential care.

Our client’s son, comments:

“This decision was a practical as much as it was a financial decision. My father required short-term care and was reluctant to move into a home because he would like to remain as independent as possible. In essence the equity release plan provided peace of mind to him and to the whole family as both my sister and I are very busy people. On the financial aspect for my father this equity release plan gave him a solution through which he could protect his estate, and investments so that he could pass them to his children, something which he was very keen to do.”

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