Care Home fees paid out of Savings annuity

Ray_H-B

I have an auntie who has recently gone into a care home due to Parkinsons and dementure, she has a house worth about £160k and pension funds of about £115k, do you know of a high immediate needs annuity type fund to put all this money to get the best rate but still have it pay out the £3k each month for the home fees

Pal

£3k is a lot of income to make from that amount of money, even assuming that she sells her house. Depending on where she lives she might be better of renting the house out.

In the end it depends on her age and health. Older and worse = higher income from an annuity.

Alternatively, simply selling up, investing the money in a savings account and paying out from the capital will mean that the money lasts 12 years+.

Annuity purchase business is highly regulated and very complex. You should speak to an Independent Financial Adviser. DunstonH may be able to help.

margaretclare

But if she rents it out then someone is going to have to manage it all for her - she won't be able to do it for herself.

Aunty Margaret

EdInvestor

Hi Ray

Only a few companies do these immediate needs annuities.This is one, which has a lot of detail about the tax free benefits of them,etc.

http://www.pafs.co.uk/ltc_products.htm