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Update on Long Term Care Planning and Advising Elder Clients
Jonathan WilkeyGwyn James Solicitors
PFS CONFERENCE 2012
• The Legal Big Bang and opportunities• The Dilnot Report• Legal Developments and the LTC Market• Top Tips when dealing with Elder Clients
THE LEGAL BIG BANG
Changing Legal Environment
THE LEGAL BIG BANG
• Key factors – “The Perfect Storm”- Legal Services Act 2007- Regulation- Indemnity Insurance- Banks- Economic Downturn- Savvy Clients- Comparison and auction sites and legal brokers- Limited lender panels- Legal Group Arrangements (360 Group/Positive Solutions)
THE LEGAL BIG BANG
• Legal Services Act 2007
Alternative sources for legal services
- Banks (Co-op Legal Services)
- Newsagents (Quality Solicitors and WH Smith)
- Shopping Centres and Train Stations (Lawyers 2 You)
- Newspapers (Telegraph and Mirror Legal Services)
- Transport Companies (Eddie Stobart)
- Direct access to the Bar
Other competition
Picture courtesy of ITV Sport.
Belarus vs. England,
Football World Cup Qualifiers,
October 2008
THE LEGAL BIG BANG
• Mixed Practices
“Allowing non-legal businesses to buy or take a stake in law firms will blow the profession wide open and introduce a level of competition heretofore unknown”.
(The Lawyer, December 2007)
THE LEGAL BIG BANG
• Mixed Practices
- Non-lawyer partners in law firms
- Full ABS (Alternative Business Structure)
- Outside Investments
“Tesco Law” (Co-OP, Halifax, RAC, AA, SAGA etc)
AIM/Stock market Listing Acquisition by non-related business or equity investor
THE LEGAL BIG BANG
• Downside for solicitors• Positive outcome for solicitors• Re-thinking the solicitors position• Client focus• Opportunities for financial advisers
THE LEGAL BIG BANG
• How do people choose a solicitor?
Lawyer I have used previously 20% Personal recommendation - (family/friend) 33% Recommended by a professional/business 22% Legal regulator’s website/phone line 1% Yellow pages 3% Internet search 5%
(Alastair Moyes The Law Society PS Regional Seminars 2010-2011)
DILNOT REPORT
• Fairer Care Funding:The Report of the Commission on funding Care and Support. July 2011
• Sharing the cost of care – individual/state• Capping fees £25k -£50k (Dilnot £35k)• Upper capital limit increased from £23,50 to £100,000• Nationwide framework for assessments and eligibility
and portability.• Residents to contribute to living costs – maximum £10k• Better support systems for carers• Cost if set at £35k - £1.7b
LEGAL DEVELOPMENTS
Legal Developments and the LTC Market
• Fairer Charging Policies for Home Care and other non-residential Social Services - October 2012
• Caring for our future: reforming care and support. The Social Care White Paper
• CRAG October 2012• The Law Society – Making gifts of assets
October 2011
TOP TIPS ELDERLY ADVICE
Top Tips when dealing with Elder Clients
• Identify your client• Avoid conflict of interests• Asses your clients mental capacity• Beware of breaching the law
– Deprivation of assets– Money laundering
• Define your role in a letter of engagement• Beware of elder abuse, undue influence and fraud• Know your limitations – “Share the indemnity”
![[Guildbook] Solicitors](https://img.dokumen.tips/doc/110x75/577cdbad1a28ab9e78a8c837/guildbook-solicitors.jpg)
