Dementia Action Week - Planning For The Future
The number of people living with dementia in the UK is increasing with around 850,000 currently living with the condition. The Alzheimer’s Society estimates that number is set to rise to over 1 million by 2025 and to exceed 2 million by 2051.
Dementia isn’t a normal part of ageing and can affect anyone at any age. Loss of capacity can lead to some unpleasant surprises, meaning proper planning is essential. There are three necessities that must be considered.
Having an up to date Will
Firstly, it’s important to update your Will. While it’s straightforward for couples to leave their estates outright to each other, this can result in a significant proportion of their estates being used to fund care fees.
The symptoms of dementia, generally, present as social care needs. As such the provision of care for those living with dementia tends to fall on Social Services. The provision of Local Authority care is means tested. So, if an individual possesses capital assets worth more than £23,250, they’re not eligible for state assistance with those care fees.
Nursing home accommodation can cost more than £1,500 per week. If an individual leaves their estate outright to their spouse or partner who is in or later requires care the whole value of the couple’s estates could be lost very quickly by the cost of paying for care.
By leaving the estate in trust for a surviving partner this can, at least, protect the deceased’s estate to pass to children without being depleted to pay for care.
Lasting Powers of Attorney (LPAs)
Financial LPAs
When an individual loses their mental capacity no one can access their bank accounts, claim their private or company pension or take decisions about selling their house without proper legal authority. If the individual hasn’t made a financial LPA then someone (and it could be anyone, including the Local Authority) must apply to the Court of Protection to be the individual’s Court appointed Deputy, a time-consuming process with results in quite restrictive powers.
By signing a financial LPA the individual can give the right to someone they trust to take financial decisions on their behalf.
Health LPAs
A spouse, or carer has no automatic right to take medical or social care decisions on behalf of someone else. Health and care decisions can still be taken but they’ll be decided by the treating doctor or, in the case of social care, by the Local Authority.
By signing a health LPA the individual can transfer that decision making ability to someone who knows them personally and who understands their wishes, beliefs and feelings.
Financial Advice
Care is expensive and getting the correct financial advice is crucial. Everyone wants to feel that they’ll be taken care of and not to be a burden on their family. Too often family members feel obligated to pay for their loved one’s care. There is no such obligation, the individual is assessed on their own means. Therefore, it’s vital to plan ahead and seek proper financial advice to ensure the right level of care is obtained.
Our experts are here to support you through any legal concerns that you may have. If you’d like to learn more about how we can support you with planning for later life then please visit our webpage.
