Chapter 8- Long Term Care Flashcards
What NHS funded nursing care is available?
Individuals assessed as needing care in a home are entitled to nursing care allowance which is non means tested and tax free
Who can claim Attendance Allowance?
If pay for own care and need help with personal care and or supervision for those over SPA or younger if they qualify for PIP
Which act sets out need for councils to provide means tested help with care costs?
Care Act 2014
What is the personal expense allowance?
£26.33
How is tariff income calculated for Long Term Care support?
Savings - lower limit
Sum of above/£250
= £X per week rounded up to the nearest £.
What is tariff income in relation to Long Term Care benefits?
Amount expected to contribute to own care
What income/savings is excluded from means testing for Long Term Care?
Personal possessions
Surrender values of Life Insurance Bonds
In what circumstances is the home excluded from means testing for Long Term Care?
If partner, lone parent or relative who is over 60 or under 18 or incapacitated lives there
How could couples avoid value of home being taken into account?
Change ownership to ‘tenancy in common’ and bequeath share to children to benefit surviving spouse
What is ‘deliberate deprivation’?
Transfer of assets to reduce capital which is illegal and would result in notional income being used anyway
What are the 4 different types of Long Term Care plans?
- Immediate Needs Plans (Annuities)
- Deferred Care Plan
- Pre-funded policies (Traditional protection and income-linked)
- Equity release
What are Immediate Needs Plans also called?
Impaired Life Annuity
How do Immediate Need Plans work?
Single premium policy when they need care in return for regular tax free payments to home for as long as they need care.
How long before payments start for Deferred Care Plans?
5 years (the client will self fund for the first 5 years).
Why are Deferred Care Plans cheaper than Immediate Needs Plans?
Because benefit deferred if willing to pay own costs for a few months or years
What are the 2 types of Equity Release Plans
Lifetime mortgage and Home Reversion Plan
What is a Viatical Settlement?
Sale of an existing life assurance policy by terminally ill person to an intermediary
What is Lasting Power of Attorney?
Allows donor to appoint someone they trust to act on their behalf.
What are the 2 forms of LPA?
Health and Welfare LPA
Property and Financial Affairs LPA
What Act replaced EPAs with LPAs?
Mental Capacity Act 2005
How did the Mental Capacity Act affect EPAs?
Meant no changes can be made to an existing EPA and no new ones can be made. (Unless it hasn’t been registered yet - which can still happen).
When can an attorney act for a donor with an LPA?
Health and Welfare - when the donor is unwilling or unable to handle own affairs.
Property and Financial Affairs LPA - as soon as it is registered.
If a client does not have and EPA or LPA and loses mental capacity, how can a relative take over their affairs?
They would apply for a Deputyship Order from the Court of Protection.
Can an EPA be revoked?
Not if it is registered.
BUT with a ‘Deed of Revocation’ if not registered.
Who can make an LPA?
Anyone over 18 with the capacity to do so.
Can an LPA be made jointly?
No, each person must make their own LPA
What is the Certificate providers job in the creation of an LPA?
They must confirm that the donor understands the LPA and the donor is not under any pressure to make it. (Selected by the donor).
