Investing for Nursing Home care

LittleJim

My 80 year old mother in law is quite ill and she is about to be discharged from hospital into a nursing home. She has a small income but not sufficient to pay for all of the nursing home charges, so her house now needs to be sold to make up the shortfall of around £150/week. The house is probably worth about £200k and we need to invest this sum wisely to provide a regular pay out, preferably monthly, to pay the nursing home costs and at the same try to leave the capital untouched. We do not know how long she will live for, so reasonable access to the capital will be needed for unforeseen costs and of course final settlement of her will. Any advice on how to invest this sum will be much appreciated.

Thanks

LittleJim

dunstonh

There are a few places that could be used. Most the ones I would initially have in mind are regulated financial services products. That means no advice can be given here on the board.

Paul_Varjak

Help the Aged Care Fees Advisory Service has products you may find suitable.

http://www.helptheaged.org.uk/ShoppingServices/CareFees/_default.htm

But, bear in mind, that advice is offered by an IFA (on a commercial basis) and not by Help the Aged themselves.

EdInvestor

An immediate needs care annuity may be of interest. You pay an amount upfront which guarantees to cover the cost of care until she dies and they are tax free if the income is paid directly to the care home. Quite cost effective when the person is quite elderly as in this case.

http://www.sharingpensions.co.uk/annuity_immediate_needs.htm

Rhino666

You could invest the money in a top paying building society like cahoot and still get around £150 monthly even if income tax is payable - I guess her income will mean that tax free interest is not a possibility but interest at basic rate or less is ?
If you want certainty over the amount paid out and can cover a years interest payments then a fixed rate bond would pay around 5% for a 1 - 5 year term.

al_yrpal

You ought to be able to get £7 grand per annum, which is roughly what she needs out of one of the top rate savings accounts with no risk. PM grumbler he's a wizard on this sort of thing.