Financial advice on funding long term care fees is a specialised area. This advice is now regulated by the Financial Services Authority, but there are still many advisers who seek to provide solutions to long term care problems using products which were not designed for that purpose.

Nexus Financial Planning has a structured approach to developing solutions for its clients. We always follow common law precedent and adopt a low risk approach. Reports of older people in care homes who are facing eviction because they have no money left hit the headlines from time to time and are by no means uncommon. A solution which will provide guaranteed fees for life is the desired outcome as it will ensure that this does not happen.

The best answer, though not necessarily for everyone, is a special annuity developed for people who are in care. This differs from ordinary annuities in two main respects.

A ordinary annuity is priced on the assumption that the people who buy them believe that they will live for a long time, and that therefore such an annuity will be a good buy. This means that this type of annuity can be very expensive. A long term care annuity is priced individually for each annuitant, based on the client’s medical history. This will often provide a considerable discount on the average price.

Provided the payments are made to a care provider the payments are not considered to be the annuitant’s income and are therefore free of all income tax. This again provides a saving which can be substantial.

At Nexus Financial Planning we will first obtain prices for a long term care annuity based on the client’s own individual health record. Quotes are obtained from every company participating in the market. Go to next page.