older woman talking about Care PlansCare Plans or to give them their technical name – Immediate needs annuities. These types of plans are designed to provide an income for life in exchange for a lump sum investment. The income from the annuity is paid out regardless of how long, the plan holder, may live.

These types of plans are only available to people who have been medically assessed as having a reduced life expectancy.

What are the benefits of taking out a Care Plan?

PFS logo for help with Care PlansFirstly, these care plans have the advantage over other annuities that because they are paid to a registered care provider, they will be exempt from income tax. So, a condition of this tax relief is that the annuity payments generated must not exceed the amount, of fees payable.

Some care plans offer at an additional cost, that the income can be indexed linked. So, this would increase the payment each year in line with care home fees.

Capital protection can also be included in the plan. This would ensure that part of the cost will be returned to the plan holder’s estate if they should die soon after taking out the Care Plan.

Remember, as the annuity involves spending capital, the costs will reduce the value of the plan holder’s estate for the purposes of inheritance tax (IHT). The amount remaining for the beneficiaries of the estate will also be reduced.

How Anstee & Co can help you choose the right Care Plans.

Care Plans may not be appropriate in all situations, but they need to be considered by self-funders. It may provide a way of capping the cost of care.

We are Independent Financial Advisers (IFA’s). This means that the financial planning advice we offer is unbiased. We will look at all the solutions available to you from the “whole of market”. We have a dedicated team of Financial Advisers who specialise in “Later Life” needs. They have all taken additional professional qualifications to be able to give financial advice in this area.

Our experience covers all aspects of financial planning including pensions, estate planning and investments.

call back logo for Care Plans adviceOur offices are located at-

  • Kettering, Northamptonshire
  • London, Greater London
  • Towcester, Northamptonshire
  • Stamford, Lincolnshire

If you would like to find out how we can help you why not contact us. The initial “getting to know you” meeting is at our expense and without obligation. A meeting can be arranged at a time and location that is convenient for you. We are presently making use of video meetings such as –

  • Zoom
  • Skype
  • Microsoft Teams
  • Facetime

We can also arrange telephone conferencing meetings. The choice is yours. There is no need to visit an office as all work can be handled remotely.

Finally, if you have any thoughts or comments on this article, “Care Plans. Are they a good way of capping, care fee costs?”, then please let us know. We would love to hear from you.

Financial Conduct AuthorityThe information contained in this article is for information purposes only and does not constitute advice. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).