Double cost whammy for elderley and their families as recession leaves cruel legacy.

Cheshire lawyers specialising in supporting the elderly and vulnerable say families wanting the best for their older loved ones may end up being subject to a cruel legacy of the recession.

Helen Gowin of SAS Daniels LLP in Congleton says elderly people who need to enter the care system are being hit by a double cost whammy – and they and their families may simply run out of time and money to get them the best possible care deal in later life.

“Arranging and paying for care is a minefield in a maze – anybody considering residential care for an elderly relative will burn through a lot of money very quickly, but specialist lawyers can take a stand on behalf of such vulnerable families and help them keep as much of their assets as possible – in some cases forcing local authorities to meet genuine care obligations,” said Helen Gowin.

“I am incensed at some of the liberties local authorities take when pressuring families to pay for care – those families should, and can, make a stand.”
As of the start of April this year a person can have in assets and savings up to £23,000, above which they are not entitled to apply to their local authority for help in paying towards their care. This figure has been increased from £22,250, a modest increase of just over 3.5%.

“But the pitfall is that many elderly people and their families simply accept this state of affairs – and not only do they end up paying for their own care, but they also have to sell their homes at the bottom of the market to finance their care.”

“We may be hearing whispers that we’re through the recession, but house prices will not pick up for a year or more, and may take much longer to get back up to true values.

“Given that the majority of elderly and vulnerable people who are entering into residential care will own their own homes, homes that will have increased in value during the economic boom of the past years, they are more likely to have to pay the costs of their care in late life.

“Until as recently as a year ago, one of the options when approached by the family of a person going into care was to consider investing the proceeds of the sale of the person’s home to create an income to pay for the care fees.

“In turn, this would also protect the wealth which could then be passed to the family – but the slump in property sales combined with the drop in value of property now make this a deeply unattractive option.

“There is also a third whammy – even if a property is sold then the range of investments available with an attractive interest rate return are minimal. “
Despite assurances from the Department of Health to work closer with Local Authorities and Primary Care Trusts in an attempt to simplify the process of choosing and paying for a care home, there are no signs things are improving.

“In view of the economic predicament I would have liked to have seen the point at which a person pays for their own care to have been substantially increased. The elderly and vulnerable in society appear to be an easy target for the government and local authorities to replenish depleted funds lost as a result of the credit crunch,” said Helen Gowin.

SAS Daniels LLP solicitors has offices in Stockport, Macclesfield, Chester, Congleton, and Bramhall.