What is an investment bond?

shaz_mum_of__2

Thanks Guys

I think its been up and running since 1994 and last years statement was much higher so possibly a long term investment as you say for hubby and his brother.

She doesn't need it at the moment so let sleeping dogs lie i think ,am i right in thinking it is protected should she need nursing care in the future ?

Shaz

jem16

shaz_mum_of__2 wrote: »

She doesn't need it at the moment so let sleeping dogs lie i think ,am i right in thinking it is protected should she need nursing care in the future ?

Shaz

As it's been up and running for so long then yes it's protected as there is no way you could have been seeing to do it to prevent being used for care 15 years ago.

whiteflag_3

jem16 wrote: »

As it's been up and running for so long then yes it's protected as there is no way you could have been seeing to do it to prevent being used for care 15 years ago.

time doesnt matter, investment bonds are not taken into consideration when assessing benefits for long term care.

jem16

whiteflag wrote: »

time doesnt matter, investment bonds are not taken into consideration when assessing benefits for long term care.

They can be if it seems like they were taken out purely to prevent funds being used for care costs. It's called deprivation of assets.

Stavros_3

whiteflag wrote: »

Easy!!! stavros are you saying was worth 50K now worth 60p, now I know things are bad and its a St James Place bond but thats a bit over the top.

Apologies, but the posting wasn't clear soz

whiteflag_3

jem16 wrote: »

They can be if it seems like they were taken out purely to prevent funds being used for care costs. It's called deprivation of assets.

apparently they are not , they are treated as insurance policies

jem16

whiteflag wrote: »

apparently they are not , they are treated as insurance policies

Apparently they are;


Deprivation of assets
It is important that individuals understand the powers that local authorities have to include in the means testing assessment assets that they consider to have been subject to ‘deliberate deprivation’. A definition used by Age Concern is that “deliberate deprivation occurs when a resident transfers an asset out of his or her possession in order to put him or herself in a better position to obtain assistance”. The Department of Health’s Charging for Residential Accommodation Guide (CRAG) gives the following examples of deprivation:

• a lump sum payment such as a gift or to pay off a debt;

• transferring the title deeds of a property to someone else;

• putting money into a trust that cannot be revoked;

• converting money into another form that has to be disregarded from the means test, e.g. personal possessions, investment bonds with life insurance;

• reducing capital through substantial expenditure on items such as expensive holidays or by extravagant living.

Myrmidon_J

jem16 wrote:

Apparently they are...

• converting money into another form that has to be disregarded from the means test, e.g. personal possessions, investment bonds with life insurance;

I can confirm (from experience) that Jem16 is correct. A client of ours (I work for an IFA) was caught out in this manner - the council in question quoted the above and didn't hurry to return any further mail.

You might (might) be able to argue your case, but the chances of success are probably limited just now. However, in the OP's case - as the bond was taken out so long ago - there should be no "case" to answer.

whiteflag_3

jem16 wrote: »

Apparently they are;


Deprivation of assets
It is important that individuals understand the powers that local authorities have to include in the means testing assessment assets that they consider to have been subject to ‘deliberate deprivation’. A definition used by Age Concern is that “deliberate deprivation occurs when a resident transfers an asset out of his or her possession in order to put him or herself in a better position to obtain assistance”. The Department of Health’s Charging for Residential Accommodation Guide (CRAG) gives the following examples of deprivation:

• a lump sum payment such as a gift or to pay off a debt;

• transferring the title deeds of a property to someone else;

• putting money into a trust that cannot be revoked;

• converting money into another form that has to be disregarded from the means test, e.g. personal possessions, investment bonds with life insurance;

• reducing capital through substantial expenditure on items such as expensive holidays or by extravagant living.

yes, although i think we are not taking about the same thing here. You are taking about deliberate deprivation and theres no doubt that if long term care was looking like a possibility and all your more was put in an investment bond it would be veiwed as deliberate deprivation as discribed above.

However my understanding is if someone has held an investment bond through the normal course of organising their financial affairs then they are not taken into account if long term care is required.

whiteflag_3

jem16 wrote: »

They can be if it seems like they were taken out purely to prevent funds being used for care costs. It's called deprivation of assets.

sorry Jem i should have read this properly the first time. looks like we are on a similar wave length.