The Department of Health is currently consulting on the Charging Arrangements for Residential Care. The consultation, which ends on 23 April 2010, is limited to four main areas:
- The treatment of personal injury compensation
- The treatment of single premium investment bonds
- The introduction of a new disregard for pre-paid funeral plans
- Deferred self top-ups during the 12 week property disregard
The issue of treatment of single premium investment bonds will be of interest to many of our blog readers and clients. Currently where the bond is written as a life insurance policy, then the value of the bond (even though it may have a surrender value) must be disregarded in the financial assessment. It is proposed that the regulations are changed so that bonds taken out as savings or investment vehicles after the date any change to regulations comes into force, are included in the financial assessment. This presents an obvious window of opportunity for our clients who have concerns in this area, although the rules on deliberate deprivation will need to be borne in mind.
If you wish to talk in more detail about this article contact your financial adviser on 0800 435648 or email admin@lyndhurstfm.co.uk
