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CF8 LTC > Chapters - 3 / 4 / 5 > Flashcards

Chapters - 3 / 4 / 5 Flashcards

(45 cards)

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1
Q

What is the high level process for arranging long term care?

A

Referral
Needs Assessment
Financial Eligibility
Arrange care and support

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2
Q

Who carries out the needs assessment?

A

Someone with skills knowledge and competence (might not be a qualified nurse or social worker

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3
Q

What criteria is used to demonstrate eligibility?

A

Care and Support (Charging and Assessment of resources) Regulation 2014

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4
Q

When can a light touch means test take place?

A

the individual has assets that exceed the means testing threshold

or

the individual has very limited financial resources

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5
Q

When assessing a married couple is the partner also income / capital also assessed

A

No, only unless they also require residential care.

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6
Q

What are the capital limits?

A

£14,250 - £23,250

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7
Q

What is not defined as Capital?

A

Personal Possessions

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8
Q

How much of the value can be ignored for cost of sale - and what assets?

A

Assets that fluctuate in value (e.g. Shares) / Second home - 10%
Not cash or Growth Bond

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9
Q

How are joint assets assigned?

A

Split 50/50

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10
Q

What type of trust may be excluded from capital / income?

A

Discretionary Trust (assuming it was for IHT purposes). Income is included.

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11
Q

When is property disregarded and potentially for how long?

A

12 weeks (if care is temporary)

Estranged partner / Spouse / relative over 60 or minor.

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12
Q

What other capital is typically exluded?

A

Initial personal injury payment
personal possessions
surrender value of a life policy
potential beneficiary of a discretionary trust

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13
Q

Is an Investment Bond excluded?

A

It is technically a life policy
Capital is disregarded, but any withdrawals are included as income (unless deliberate asset deprivation).

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14
Q

What is the max time liable for unpaid care costs?

A

6 years

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15
Q

What is notional capital? (and examples)

A

Capital that may not be owned but is treated as though - capital paid to third part / deliberately disposed / unclaimed premium bond / deferring DB pension

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16
Q

When is a pension excluded?

A

Under 57

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17
Q

How is a pension in drawdown assessed even though little or no income is taken?

A

Annuity calculation

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18
Q

What is the Tariff calc?

A

Anything between £23,250 and £14,250 - each £250 is deemed £1 of income per WEEK (always rounded up to the nearest £1).

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19
Q

When can income be partially disregarded?

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A

Pension income (50% of the occupational pension / personal pension / retirement annuity) - when the individual has a spouse / or not in care home / or actually receives it.

20
Q

What income is fully disregarded?

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A

Income from employment
Income from mortgage protection
Some benefits (DLA / PIP)
Annuity Income from lifetime mortgage
Pension Credit Savings Credit up to a limit

21
Q

How much is the Personal Expenses Allowance per week and what is it spend on?

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A

£30.65 (25/26)
Newspapers / Toiletries

22
Q

What time limit is assessment for temporary residents (in residential home)

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A

8 weeks (continuous not aggregate)

23
Q

What needs are the local authority oliged to assess?

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A

Care Needs
Domiciliary Care (e.g. meals on wheels / carer and home visits / physiotherapy.

24
Q

Local councils will charge for domiciliary care - what is the name and limit for income amount after costs for individual?

Study These Flashcards
A

Minimum Income Guarantee

£177.55 (couple)

25
When is domiciliary care free?
Capital / Income below lower means tested threshold Where services are continuing care (NHS) In receipt of intermediate care Mental Health 'after care' services are provided Minor Home adaptions of £1000 or less.
26
What does PMI normally cover and not cover
(Short Term) Hospital Accommodation Surgeon and anesthetist fee in patient drugs (Long Term) Chronic Illnesses
27
What do Health Cash Plans cover?
Night in Hospital Consultation Benefit Professional care - physiotherapy etc (50%)
28
Is Disabilities Facilities Grant means tested? If so how?
Yes means tested £6000 assets and above - tariff income £30,000 Max payment (Scotland capped at £20,000)
29
When can a first party 'top up' residential care?
12 week property disregard Deferred Payment Agreement (DPA) Accomodation - S117
30
What is an LTCI protection and is the income taxable?
Risk based protection product - pays out if need regular care - free of tax
31
What is a convertible policy?
Policies (e.g. WOL) that include an option to convert some or all of the benefit into long term care benefit
32
What is the deferred period for a Convertible LTC
13 weeks but can depend on policy
33
How is it paid out
Based upon failure of ADL's (can be regular payments / accelerated lump sum)
34
How does a long term care bond work?
Pay lump sum Provider charges a premium to cover LTC costs Charges may increase over time Bond is a normal with investment units (can be onshore or offshore)
35
What is the taxation on the care benefit paid from the Care Bond
Tax Free
36
What is an immediate need annuity? (INA)
Can be called Care Annuity / Immediate care annuity For individual who will shortly need care Variation of impaired life annuity Receives income for rest of life as normal
37
How is the income tax with an INA?
Tax free to care provider is tax free To individual - capital element is tax free and income taxed as savings income (marginal rate)
38
When is an LTCI paid out?
When unable to perform a given number of ADL's The insured is suffering from cognitive or mental impairment resulting in need for supervision and from organic cause.
39
Example of Cognitive impairement?
Alzheimer Irreversible dementia
40
What's the difference between a lifetime mortgage and home reversion?
Lifetime Mortgage is a lifetime loan. Home reversion is where part of the property is sold.
41
What is the general LTV for a lifetime mortgage?
25-55%
42
How is a lifetime mortgage paid?
Proceeds from the sale of the home (on death / permanent care / sale of property). This cannot be higher than the value.
43
What interest rate options are there for lifetime mortgage?
Fixed / Variable Variable must have a cap (which is fixed for the life of the loan) Can pay interest or roll up
44
With a home reversion do you get market value?
No - normally 1/3-2/3rds depending upon age.
45

CF8 LTC (3 decks)

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