The same couple in case number 2 above advised us during the pension advice process that the wife’s father had sadly passed away. Their concern was that the wife’s mother had a number of years before been diagnosed with progressing dementia and her husband was her primary carer.
Long Term Care Annuity, IHT
Under the terms of the existing Power of Attorney our clients had a number of objectives in addition to their concerns:
• Persuade her mother that she would be best cared for in a local quality care home offering specialist facilities for residents with dementia related conditions.
• To select a local care home that offered quality standard of care and facilities
• To guarantee the lifetime cost of the best possible care given that her life expectancy was considered to be in excess of 12 years.
• To meet her late husband’s wishes to leave meaningful legacies for their children and grandchildren after guaranteeing the cost of lifetime care.
We reviewed the income & expenditure of the mother and completed a gap analysis with a view to establishing the shortfall in fees. We then established that there was not sufficient capital available in order to realistically generate sufficient income to meet the shortfall.
Our solution was to recommend a Long Term Care Annuity that in return for a capital sum generated a lifetime increasing monthly payment to any chosen care provider. As a consequence of this planning the mother will receive the best possible care guaranteed for her lifetime and the next generation would benefit from a meaningful inheritance when mother finally passed away.