Nursing Home Funding
'There is no right decision. Whatever you decide to do will be the right decision.'
Those words were spoken by a GP to someone arranging nursing home care for his elderly mother. "It is so difficult. It is as though you have the power of life and death over the person." He went on to say, "There is no door at the local authority labelled Nursing Home Care and Funding - This Way. Everything is done to obfuscate the situation and when you do eventually get through to someone it is as if the only thing they are interested in is, (a) how much money your relative has and, (b) how quickly the state can acquire it."
At The Harvest Partnership we have many years of experience in helping clients negotiate the financial hurdles of nursing home and care home funding. Whilst it is possible to work with a situation in which the individual is already in residence, it is potentially much better to contact us prior to the need arising. This is because we can use our experience to shield assets from claim by the local authority for care funding. This could potentially save the family hundreds of thousands of pounds.
Example One: A client already in nursing home care.
Mrs A was fortunate in that she had amassed capital and the proceeds of sale of her property, a healthy occupational pension from a long career as a teacher and the state pension. Mrs A's daughter approached The Harvest Partnership for guidance and advice. After a thorough review it was determined that Mrs A's capital was sufficient that, if structured appropriately, it would be possible to meet the difference between the cost of nursing care and pensions from dividend income. A recommendation was produced and acted upon. The result is that the capital is preserved from the effect of capital erosion caused by the pitfall of taking income from capital. Also, there is the prospect of capital growth as well as growth in the income to accommodate the effect of inflation.
Example Two: A client some years prior to the need for nursing home care arising.
Mr B had lost his first wife to cancer in early middle age. He had remarried very happily some years later, retired and sold his business in his early sixties. After meeting with one of The Harvest Partnership's seasoned advisers, a report was produced that showed that after structuring his funds for income and growth sufficient for his day to day needs, Mr B could protect the major part of his capital by placing it in trust with himself and his children as trustees. If Mr B died, the new Mrs B would be the life tenant, receiving income and growth for the rest of her life, with the capital being passed to his children as the remaindermen on the new Mrs B's death. That meant that not only could Mr B assure the financial security of his second wife during her lifetime but he could also guarantee that, at the end of the day, the capital would be passed to the children from his first marriage. In the meantime, the majority of the capital would not be claimable by the local authority should Mrs B pre-decease him and he finds himself in need of nursing home care. A similar arrangement was also constructed for Mrs B ensuring that the interests of her children from her first marriage were protected.
The Harvest Partnership is dedicated to helping clients achieve their financial objectives. So, whether you have a lump sum to invest for income and growth, or perhaps your pension funds are in need of review, we can offer professional and independent advice and then put that advice into effect in the most effective way.
We recognise that most individuals who need financial advice are often at a loss to know to whom they should turn. At The Harvest Partnership you will find dedicated and experienced professionals who will take you through the whole process in a friendly and caring manner and are always willing to answer your questions. Our job is to put you in an informed position so that you can make a quality decision. Our advice is delivered in writing, usually after a meeting in our Bromley office, and is then discussed at a subsequent meeting. These steps are important as it is only by knowing that we have got to grips with your situation can you be assured that our advice addresses your needs
