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Part 2 – ‘It’s not going to be £86,000’ – getting to grips with care costs

5 min read 20 Jul 22

Session: 20 July 2022

In this session Colin Simmons, Pension Development Manager, Pru, Les Cameron, Head of Technical, M&G Wealth and Tony Miles, Technical Director, My Care Consultant, considered the aspects of later life care – they explored the changes, the complexities and the costs of funding long-term care for your maturing clients.

Learning Outcome – to demonstrate an understanding of:

  • Accurately describing the Government’s plans for long-term care cost funding
  • Evaluating the possible cost of funding care
  • Assessing the different methods of care funding

 

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

1. What are the key elements when determining whether deprivation of assets has occurred?

a) Whether advised or not

b) Whether trusts have been used or not

c) Intent and timing

d) Intent and asset purchased

 

2. Assuming no depravation when are investment bonds disregarded capital for care assessment?  

a) When they contain smoothed funds

b) When they contain an element of life insurance

c) When they invest in insurance company funds instead of direct 

d) When they are on a capital redemption basis

 

3. The proposed £86,000 cap on care costs relates to

a) All care costs incurred by the person in need of care (including local authority payments)

b) All care costs paid for by the person in need of care (including accommodation costs)

c) All 'personal' care costs incurred by the person in need of care

d) All 'personal' care costs incurred by the person in need of care minus any payments made in excess of the local authority rate to meet said needs and any optional top-up payments

 

4. The proposed £86000 cap on care costs and the revised means test to determine the extent of any local authority support are scheduled to come into effect

a) In October 2023 for all local authorities in England

b) In January 2023 for all local authorities in England

c) In October 2023 for the majority of local authorities in England (true)

d) In January 2023 for the majority of local authorities in England

 

5. The statutory guidance to the Care Act 2014 stipulates that currently for those living in England with eligible assets of, for example, £20,000 their local authority will

a) Pay the total cost of their care needs

b) Pay for some of their care needs

c) Pay for some of their care needs subject to tariff income being added to other eligible income to determine ability to pay

d) Pay for all of their care needs when their assets fall below £14250

To claim your CPD certificate, click here.

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