Investments for fathers nursing home costs

iwilson16

I am looking for some guidance on what to do with my fathers
finances in order to fund a nursing care home for the next few
years.

He is 82 years old and has mid-stage+ Alzheimers. Not sure what
time he has left. It could be 6 months or a few years, but I
doubt he will last more than 3-4 years as he seems to pick-up a
lot of infections.

He goes into the nursing care home today (13th June 2011). This
costs £850 per week, and the local authorities will contribute
£270pw towards this. His private pension is £86pw. So we will
need to make up the shortfall of £494pw from his capital.

He re-married 25 years ago, and his wife has her own pension from
her first husband. She will pick-up the costs of his care if his
capital runs out. Thier house is in her name alone.

I did a quick sort thru his papers last week, and below is a
breakdown of his capital and income.

Should I try and bring all these investments under one company in
order to simplify drawing on the capital? (I have power of
attorney)

Should I consider selling any of the investments, or moving them
into different (safer) funds?

I've not had to use the Power of Attorney thing yet. Any difficulties commonly experienced doing this?

Anything else I should consider?

Thanks
Ian

Capital £126,432 ...

Nationwide eSavings £40,000
Nationwide Flexaccount ca £3,000
Bank of Scotland ca £3,942
Premium Bonds £26,300

ISA Bank of Scotland £3,853
(£2094 cash + 925 BT shares)
ISA Threadneedle £15,837
(2 funds - UK fund and Global Equity)
ISA Marks and Spencers £3,990
(cash ISA)
ISA M&G £25,080
(2 funds - M&G Basics, M&G High Yield Corp. Bond)
ISA F&C £4,429
(Stewardship Income Scheme)


Income (private, i.e. non-state) £4,514.36pa (£86 pw)

Prudential £865.68
Standard Life £3,648.60

Property - none

le_loup

Using POA is "generally" quite easy although some finance providers have problems at local levels.
Get all the money making a return ... get rid of the premium bonds!
You seem to forgotten his state pension.
Find out about Immediate Care Plans from someone like NHFA (a subsidiary of HSBC).
I hope this is a start for you.

kidmugsy

Perhaps you should look up "Immediate Needs Annuity" - an annuity that, if paid direct to the Care Home, is tax-free. You could equip yourself for a discussion with an IFA.

Biggles

kidmugsy wrote: »

Perhaps you should look up "Immediate Needs Annuity" - an annuity that, if paid direct to the Care Home, is tax-free.

It should definitely be your first priority to check these out.

One firm gets quotes from all the firms that are in the market for these policies and will set out all your options very clearly, no obligation involved. That is www.nhfa.co.uk. They are now part of HSBC but they still provide impartial advice, as HSBC don't provide these policies, and they send an IFA to see you.

The big benefit is that, if they have a suitable policy at the right price, the attorney never has to worry what will happen when the money runs out.

No connection, just a very satisfied customer.

Iancfp

You should go to the symponia website and find a local IFA who is a care specialist and completely independent and not a sales person

Biggles

Iancfp wrote: »

You should go to the symponia website and find a local IFA who is a care specialist and completely independent and not a sales person

This seems to lead mainly to St James's Place Wealth Management employees, who, I understand, are not actually IFAs?

And they don't seem to have a very good reputation on here (https://forums.moneysavingexpert.com/discussion/3239214)

MoneyJuggler

Firstly, all the best with what must be a stressful situation.

POA IIRC was really straightforward as long as everything is already in place -solicitor was a big help there. Then using it, as another poster has said,usually involved the manager of the bank (or whoever I was dealing with) to check the paperwork.

I started looking into an Immediate Needs Annuity last year and is a tough one to call as they appear quite pricey,and basically a gamble for all concerned -so they are pricey if they don't have to fund much care, but a bargain if they do!

It might also be worth contacting (as well as an IFA) Age Concern and/or other welfare agencies, as they come across a lot of the same issues.

dunstonh

This seems to lead mainly to St James's Place Wealth Management employees, who, I understand, are not actually IFAs?

They are not. They are slick but damned expensive tied agents.

IFAs love coming across SJP clients as we can wipe the floor with them on charges. We may not have the glossy brochures but if you want to pay hundreds of thousands of pounds for that you can.

le_loup

MoneyJuggler wrote: »

I started looking into an Immediate Needs Annuity last year and is a tough one to call as they appear quite pricey,and basically a gamble for all concerned -so they are pricey if they don't have to fund much care, but a bargain if they do!

It is a tough one to call but not a gamble. Like any other insurance, if you need it, take it. It not only covers your needs, it provides peace of mind. Your house will probably never burn down but would you go uninsured?

Amanita_2

Iancfp wrote: »

You should go to the symponia website and find a local IFA who is a care specialist and completely independent and not a sales person

Better to go to https://www.unbiased.co.uk, tick the box for Long Term Care and find an IFA who doesn't need to pay a third party to generate leads for them.

Iancfp

Biggles wrote: »

This seems to lead mainly to St James's Place Wealth Management employees, who, I understand, are not actually IFAs?

And they don't seem to have a very good reputation on here (https://forums.moneysavingexpert.com/discussion/3239214)

No Symponia is a trade group for IFAs who specialise in care fees planning and who have the examinations etc to do the job properly

St James Place are rip off merchants with little qualification and less morals

You better be careful the lady who runs Symponia is a terror if she thinks you are sleighting their professionalism and ethics