Proceeds of house sale when moving into supported living.

downshifter

I've just come along to ask this question on behalf of a friend with whom I had a long chat yesterday and have seen a similar thread co-incidentally. Rather than jumping on that one would you mind if I ask for advice more directly?

My friend is one of 4 children whose mother in her early nineties, (very independent, generally healthy etc) has decided to move into supported care. This lady can fund herself from pensions and provision left by her husband who died a few years ago. In addition she will be selling her house (approx £400k and also has some investments, ISAs etc). Maybe £700k altogether incl house?

She would like to split the house proceeds between her children - they know that IHT may become payable but that's ok, none of them is badly off. However as with the other poster, the only problem is if she needs to move to a much more expensive nursing home. A quick google shows that nursing care can cost £37,500 a year and if she needed say 10 years nursing care (unlikely but still) that's £375k. So if she gives away that money now she may not have enough to self fund and then deprivation of assets would come into play. Nobody wants to do the wrong thing now or in the future. None of the children are in need of the money now so she really doesn't need to do this, just wants to give them some while they are young enough to enjoy it - well they're all in their 60s so very young!

Can anyone advise what would be best for my friend and her siblings to recommend? In a way, they don't really know what questions they should be asking and none of them is very internet-savvy. I told my friend I would see what I could find out so when their mother goes to see her solicitor she at least knows what questions to be asking.

Thanks very much.

DS