House sale proceeds investment for income

savetilibleed

We are having to sell our Mother's house to fund her nursing home costs. Whilst it has only recently gone on the market I am starting to think how best to invest her money for an income to pay, or help pay the fees. How do I go about trusting such a lot of money to one institution?
Any ideas for starters please?

colsten

As usual, park the lot in NS&I to start with (I trust you got POA sorted already).

You could then consider something like an immediate need care plan, with some or all of the money: https://www.moneyadviceservice.org.uk/en/articles/immediate-need-care-fee-payment-plans

Linton

Have you looked at a care annuity/immediate needs annuity? It may be appropriate as it guarantees payment until death ensuring that Mother's final years arent disrupted by her running out of money. It also limits the cost to the estate should Mother be one of the relatively few people who live for an extended time in Care.

How much money is the house worth? How much are the care costs? I suspect that you will have to pay much of the cost from capital. A safer income fund or income paying investments might generate 4% or so but it carries some risk. You arent going to get a higher income without taking major risks in my view, risks higher than would be appropriate for someone with a POA.

Suggest you talk to an IFA about your options. You should look for someone with particular experience of this area.

savetilibleed

colsten wrote: »

As usual, park the lot in NS&I to start with (I trust you got POA sorted already).

You could then consider something like an immediate need care plan, with some or all of the money: https://www.moneyadviceservice.org.uk/en/articles/immediate-need-care-fee-payment-plans

Yes PoA was sorted 7 months ago. Is the advantage of NS&I that a large amount in there is guaranteed? Thanks for the link

colsten

NS&I is Treasury backed, so there is no £75K limit to worry about. From memory, they allow up to £2m in their instant access accounts, and they have two of these. The interest rates are, unsurprisingly, nothing to write home about so it's probably not a long term place for the money but it allows you to distribute the money to wherever at your own pace and without any worrying about FSCS limits.