How do I invest to pay mum's fees

dunstonh

Annuities want too much money

What do you mean by that?

The lump sum should last 5 years and will need to be split if put in the bank because of the 75k guarantee.

The £75k FSCS protection applies to deposits. The other options that exist that may be appropriate have different types of protection.

What happens after 5 years?

xylophone

What happens after 5 years?

Once capital is reduced to below £23,250, there will be some form of support from the state.

http://www.ageuk.org.uk/home-and-care/care-homes/paying-for-permanent-residential-care/

Chickereeeee

Chickereeeee wrote: »

Have you considered renting the place out, and using rental income to help with care home fees?

To add to my reply: we are going through this at the moment.

We have opted to go for Deferred Payment, and rent the house out. The council pay for a proportion of the care home fees, and get paid back when the house is eventually sold.

MILs existing income (pensions) + rental income should pay for a large proportion of the monthly fees, so the charge against the capital value of the house will last a good while.

C

teddysmum

HarryFlatters wrote: »

Nursing homes are expensive, as others have said the privately funding residents (£950 per week in this case) do subsidise the council funded residents they are obliged to accept (£500pw). The owner does run a Lambourghini so my sympathies only run so far

A few years ago, a man setting up a care home tried to recruit the wife of my husband's friend. She was taking early retirement as a sister in an NHS hospital and offered her almost double her current salary, saying he could afford that as he would be in good profit within just a few years (the home being built up from a former farmhouse, by himself and building trade acquaintances ).


She refused, as she wanted to retire, but he came unstuck, as he failed to insure the building in progress . It was near completion, when vandals burned it down, leaving him with huge debts for building work and the massive mortgage.

LHW99

Immediate care needs annuities are sold by specialist IFA's see:
http://societyoflaterlifeadvisers.co.uk/find-an-adviser/

kidmugsy

teddysmum wrote: »

An article in yesterday's Mail suggested that the average is £750/week with higher cost in London and that care homes are closing because they cannot survive (make huge profits) on that level

If there are huge profits to be made, I do hope you'll open a few care homes yourself.