Solicitors for the Elderly
Whatever you decide about your future, it's important to involve a specialist solicitor who will give you impartial advice and act in your best interest. We are members of Solicitors for the Elderly and can help you.
Our care and legal system is complex and confusing so timely advice is vital to avoid later complications.
Solicitors for the Elderly (SFE) is a national organisation of lawyers, such as solicitors, barristers and legal executives, committed to providing and promoting high-quality legal services for older people, their family and carers. Sharon Richardson has been accepted as a member of SFE. Members of SFE have a wealth of experience within this key legal area and they are required to have spent a substantial amount of time working for elderly clients so you can be confident about the service you receive.
Advice may be about selling your home, making a Will or gifts or estate planning. Members can also offer guidance on equity release schemes, immediate care insurance plans, funding long term care as well as contracts for care homes.
Other advice you can obtain from a member of SFE may include:
Power of Attorney - allowing you to give authority to another person (the attorney) to handle your finances and/or make health and welfare decisions on your behalf. You must have mental capacity to give the power. In the event you become mentally incapable an Ordinary Power of Attorney is automatically cancelled, whereas a Lasting Power of Attorney will be valid, provided it is registered with the Public Guardian.
Court of Protection - The Court of Protection supervises and makes orders for the management of property and financial affairs of people who are mentally incapacitated, where they have not made an Enduring or Lasting Power of Attorney. The court can also make welfare and medical decisions where necessary. An SFE member may assist in the application to appoint a deputy and in getting appropriate orders from the court to deal with assets as well as making a Will or gift for the person who lacks mental incapacity.
Living Wills - You can make an advance directive of what medical treatment you want or do not want in the event you are later unable to communicate your wishes.
Long Term Care - Arranging and funding long term care is complex. Whether you remain in your own home or move in to sheltered or care home accommodation, you may qualify for financial assistance. This may be by way of welfare benefits, social funding from social services and health care funded by the NHS.
Gifts - Many people believe that by giving away their wealth they can avoid paying for care. Any proposed gift needs careful consideration of the benefits, risks and implications on any future liability for care. It is dangerous to make a gift without getting the right advice as you may find that you are denied state funding at the time you most need it.
Please contact Sharon Richardson in our Private Client team on 01904 624185 for advice.
Below are news updates from the Solicitors for the Elderly - SFE
May 2012
Care providers to have proper arrangements for people who lack mental capacity
The Health and Social Care Act 2008 (Regulated Activities) (Amendment) Regulations 2012 (Draft) have been published. Regulation 5 will amend regulation 18 of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2010 (SI 2010/781), which relates to the registration requirement relating to arrangements for consent to care and treatment so that service providers put in place suitable arrangements when a service user is not able to give their consent. This amendment is necessary because the registration requirement does not currently make express provision for arrangements when a service user is unable to give consent themselves.
Legal Services Board recommends regulation of will writing and estate administration
The Legal Services Board has announced proposals to deliver greater protection to consumers of the legal services of will-writing and estate administration. These would see the services brought within the scope of legal services regulation, regardless of who provides them.
The decision on whether or not to regulate will-writing and estate administration services has long been debated. The LSB has reviewed all of the available evidence about the problems suffered by some consumers in these areas, and conducted original research, to identify what the risks to consumers are and why they emerge. The LSB’ s investigations found systemic problems with the services delivered by many different types of provider. It found consistent patterns of sloppiness, simple errors and poor communication. This often resulted in an unacceptable service. Too often consumers were subjected to unfair sales practices. There have also been well-documented examples of fraud and deception.
The proposals would see all providers of these services regulated and brought within the list of “reserved activities”.
Alongside the proposals on will-writing and estate administration, the LSB has also issued two related publications:
• the announcement of the approach the LSB will take to examine other gaps in legal services regulation starting with general legal advice for individual consumers;
• a related-review of how and when non-commercial providers of reserved legal services should come within the scope of regulation.
Guidance on reduced charitable rate of IHT
HMRC has published guidance on the new reduced rate of inheritance tax for estates where at least 10 per cent of the taxable amount is left to charity. The Guidance on the site includes a calculator to assist practitioners
http://www.hmrc.gov.uk/inheritancetax/reducedrate.htm?j=31050&e=cbielanska@gmail.com&l=346_HTML&u=1040287&mid=1062735&jb=0
http://www.hmrc.gov.uk/inheritancetax/draftmanual.pdf
New bereavement department for PAYE and Self Assessment tax payers
HMRC has launched a bereavement service for the personal representatives of deceased PAYE and self assessment tax payers. The main form which PR’s use to finalise the tax affairs of the person who has died (R27) has been redesigned following feedback to make it easier to complete.
The form now has a new section in which a personal representative finalising the estate of someone who has died can appoint someone to act on their behalf. They can also provide details of the surviving spouse or civil partner to enable HMRC to take action to review their tax affairs.
Click: http://www.hmrc.gov.uk/news/bereavement-service.htm?j=31050&e=cbielanska@gmail.com&l=346_HTML&u=1040291&mid=1062735&jb=0
Self funders of care services paying more than ever before says Age UK
Research published by Age UK, has highlighted that older people who need social care are paying more than ever before.
Key findings:
• Private spending on social care has risen by 4.5% (£380 million) in the last year
• In England more and more older people are paying for their own care. Over the last year there has been a fall in public sector spending on older people’s care of £341 million or approximately 4.5%. That is a decrease from £7.65 billion in 2010-11 to an estimated £7.3 billion in 2011-12 (2011 prices).
• In 2011/2012 private expenditure on social care, which includes charges for council-funded services, top up payments to supplement local authority payments that do not completely cover residential care home fees, and privately purchased home and residential care was an estimated £8.78 billion, in comparison to £8.4 billion spent on private expenditure in 2010/2011.
• A number of factors are driving up private expenditure even more. Tightening eligibility criteria of care services has had an impact – which means that people who previously could have been entitled to state help with care costs no longer qualify because the local authority has decided that it will only provide care for those with higher levels of disability. Four fifths of councils now only provide care to those with either substantial or critical needs and anyone who doesn’t meet the eligibility criteria of their local council has to pay for any care they need. At the same time, means test thresholds are not keeping pace with inflation.
• The charges that local authorities make to individuals to use their services have also significantly risen in the last four years. In 2010/11, care charges were £150 per year higher than in 2009/10 for each older person using local authority care services and £360 higher than in 2008/09.
April 2012
NHS Funded Nursing Care Bandings 2012-13
The level of NHS contribution in England towards the costs of a place in a care home with nursing for those people assessed as requiring the help of a registered nurse will remain unchanged.
See www.dh.gov.uk/health/2012/03/care-bands/
www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_106230
NHS prescription and dental charges
Charges for NHS prescriptions, wigs and fabric supports and NHS dental treatment will increase from 1 April 2012. The cost of a 3 month (£29.10) and 12 month prescription prepayment certificate (£104) remains unchanged. See www.dh.gov.uk/health/2012/03/nhs-charges
Care service provider’s struggle
Bupa has reported a drop in profits of 70% over the last financial year. In part this is due to spending cuts affecting its British care homes division because local authorities froze payments to private providers for looking after patients they could not find places for.
70% of the residents (around 18,000) in Bupa’s UK homes are funded by local councils or the NHS. Average spending per occupant in England rose only 0.5% last year, and all predictions for 2011 are flat at best, but with rising staff costs, the squeeze remains severe.
Bupa estimate over the next decade, over 80,000 beds will come out of the sector, when it needs to grow by about 20,000 to keep up with demand. That will leave a shortfall of 100,000.
Care in own home is poor
An investigation by consumer group Which? by undercover researchers have found older people are suffering 'disgraceful' home care. Older people being cared for in their own homes are being left in soiled beds, with food out of reach and unable to get to the bathroom.
One woman was left without a walking frame, rendering her unable to get to the bathroom, while another was left alone in the dark for hours, unable to find food or drink. Carers neglected to give one man vital diabetes medication.
The survey showed that 47% of respondents reported a missed visit in the past six months, and 62% of these were not warned in advance.
To watch the video:
http://www.which.co.uk/news/2012/03/which-exposes-failings-in-home-care-system-281517/
March 2012
Personal health budgets update
A pilot programme involving around half the primary care trusts in England is currently underway to test out personal health budgets in the NHS. The Secretary of State for Health has announced that, subject to the evaluation, by April 2014 everyone in receipt of NHS Continuing Healthcare (NHS CHC) will have a right to ask for a personal health budget, including a direct payment. It is planned that Clinical Commissioning Groups will be able to offer them on a voluntary basis more widely.
Unclaimed Pension Credit Reminder
Up to £2.93 billion of Pension Credit goes unclaimed every year and as many as 1.6 million people could be entitled to this money. People who get Pension Credit are automatically entitled to a Cold Weather Payment if average temperatures are recorded as or forecast to be zero degrees Celsius or below over seven consecutive days.
Pension Credit tops up income to £137.35 a week for a single person, £209.79 for a couple. Those with savings or a work pension could still be eligible as could those who own their own homes. Pension Credit can be backdated by up to three months.
People can claim Pension Credit, as well as Housing Benefit and Council Tax Benefit, in one free phone call on 0800 99 1234 without the need for a signed form. You can use the pension credit calculator to see if it is worthwhile your client making a claim by clicking on the link:
http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_180167
Land Registry launches top tips to help owners protect their property from fraudsters
Property is usually the most valuable asset people own. It can be sold and mortgaged to raise money and is therefore an attractive target for fraudsters. The properties most vulnerable to fraud are usually empty, tenanted or mortgage-free. Individuals at a higher risk of fraud include owners who are absent for whatever reason; for example because the owner may live abroad, buy to let landlords, the elderly not living in their properties because they may be in long term hospital or residential care, and where a relationship has broken down.
Land Registry’s top tips to help owners protect their property from fraudsters are:
• First of all make sure the property is registered. If the owner becomes an innocent victim of fraud and suffers a financial loss as a consequence, they will be compensated.
• Once registered make sure the contact details are up-to-date.
• You can have up to three addresses on the register; email addresses or an address abroad can be used. The more information provided, the more chance the land registry has of contacting the owner if needed.
• Owners who feel their property might be at risk can have a restriction entered on their property which is designed to help prevent forgery by requiring a solicitor or conveyancer to certify they are satisfied that the person selling or mortgaging the property is the true owner. From 1 February 2012, there is no Land Registry fee for home owners to register this restriction, as long as they do not live in the property they wish to protect. Owner occupiers will continue to pay.
http://www.landregistry.gov.uk/
£500m funding gap for older people’s social care – and widening
Age UK’s new Care in Crisis 2012 report shows that this year spending on older people’s social care in England has fallen half a billion pounds short of maintaining the level of provision in place when the Coalition came to power.
Age UK’s analysis shows that the combined impact of growing demand for services and a £341 million reduction in older people’s social care budgets this financial year – equivalent to a 4.5% cut – has created a £500 million shortfall.
This funding gap comes after several years of stagnating and then decreasing social care spending. Since 2004 the number of people aged over 85, and most likely to need care and support, has increased by over 250,000. The increasing demand, combined with a decrease in real terms spending on social care has created a real funding crisis.
Based on the figures in this report, Age UK projects that, by next year (2012/13) the Government will need to spend £1 billion more than this year just to stop things getting any worse.
Age UK’s report shows that:
• According to research of the two million older people who need care, nearly 40% do not receive any formal support
• A recent survey of Directors of Adult Social Services by ADASS found that 23 per cent of the savings would be made through service reductions.
• Even before the current social care spending cuts of 4.5 per cent, the total hours of care support purchased by local authorities for older people fell from 2million to 1.85 million in 2009-10. Since 2009/10, local authorities have faced funding cuts of 28% over four years.
• In 2005, around half of councils provided support to people assessed as having ‘moderate’ care needs but by 2011 the figure had fallen to 18 per cent.
• Charges for care provision are also increasing. In real terms, charges were £150 per year more in 2010-2011 than in 2009-2010 for each older person using local authority services and £360 more than in 2008-2009. With councils increasing fees and charges and abolishing caps which limit the weekly amount any individual is expected to pay, these costs are likely to have increased further in this financial year.
http://www.ageuk.org.uk/Documents/EN-GB/Campaigns/care_in_crisis_2012_report.pdf?dtrk=true
BBC Radio 4’s Money Box Live - Exit fees on leasehold retirement homes
Tish Hanifan, barrister and SFE director appeared on BBC Radio 4’s Money Box Live on 12th February, to comment on exit fees charged on leasehold retirement homes by the freehold company. She appeared with Melissa Briggs, Co-Founder of Carlex, the Campaign Against Retirement Leasehold Exploitation. Listeners heard of the tale of Sheila Williams, whose mother died in 2010. She has paid more than £2,000 a year for her mother's empty and unsaleable flat and another £1,400 if she lets it out. These fees are in addition to the obligation to pay ground rent and service charge. The Office of Fair Trading launched an enquiry into charges levied on retirement home nearly two and half years ago, but has still come to no conclusions but they hope to provide an update sometime this spring.
Tish advised callers that leaseholders do need to pay the fees if they have agreed, as they would otherwise be in breach of the lease. She said people should make sure they get specialist legal advice and ask whether the conveyancer has experience of these types of lease. There is also the need for advice to cover lifestyle changes; what if the person needs to move into a care home or they die?
SFE is grateful for Tish in giving up her Saturday morning to talk on the show.
To hear the recording click http://www.bbc.co.uk/programmes/b01bw6rv
Sharon Richardson
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