The increasing need for effective care planning

Simon focused on the need for a holistic approach to later life and estate planning taking into account care fee planning, inheritance tax (IHT) planning and personal wellbeing. The seminar was heavily supported by statistics and can be summarised in the following points:

The latest forecasts project that inheritance tax receipts will rise to £6.5 billion in the year 2022/23. This is a huge increase from just over £2.7 billion in 2010/11. Due to property prices the majority of IHT receipts are generated in London and the South East.

One in three women and one in five men will need long term care. Of those of us who need care, one in ten will pay fees in excess of £100k.

With an ageing population, increasing care costs and the proposed cap of care fees being postponed indefinitely, there is a growing need for later life and estate planning.

Advisers have carried out IHT and estate planning for less than 20% of their client base. While a large proportion of clients lack urgency or are concerned with control and access to their capital, nearly 30% of advisers are not comfortable with solutions or have not even discussed later life and estate planning with their clients.

Clients are concerned with passing as much wealth to their beneficiaries as possible while retaining access and control during their own lifetime.

Business Property Relief (BPR) is a relief from IHT of up to 100% for qualifying investments in privately traded companies. This is a very attractive way of IHT planning for many clients as they remain in control of, and have access to, their assets. As the client only has to survive for two years after investing in qualifying BPR holdings, such investments become more popular the older clients get.

Simon ended the seminar highlighting the benefit of taking professional care provision advice in addition to IHT and care planning to ensure a client’s personal wellbeing.