Advice needed regarding £250,000

Chrystal

We own our home which has been modified as OH is disabled, value circa £115,000.

We were told by Social Worker to sell this house and spend as much as possible on a new bungalow, in order for us to be below the threshold, and thus able to still get financial help with Personal Assistant etc. Neither of us are happy with the idea of this.

AnotherJoe

I dont think its just about getting the most you can out of the state.

If you are happy where you are (house and area), the adaptations are fine, and can get by on current income/pension, how much does the financial help for a PA cost, because the sum of money you inherited could easily outlast you and therefore you might be better off just spending that money down both for a PA and a more comfortable lifestyle in general. You might also have more choice about PAs than if on allowance.

OTOH if a bungalow would suit you better then you should move for that reason, without necessarily spending yourself down to the breadline so you get assistance again.

Linton

Surely you want to fully be in control of the type and quantity of assistance your husband receives. This presumably can be expected to ncrease in the future as you both get older. With local authority funding the number, nature and length of time for visits is limited. If you are paying you are in control.

I suggest you work out a spending plan for the next say 20-30 years and talk to a local IFA as to what should be done to invest the money to safely provide sufficient long term income.

veryintrigued

Chrystal wrote: »

We were told by Social Worker to sell this house and spend as much as possible on a new bungalow, in order for us to be below the threshold, and thus able to still get financial help with Personal Assistant etc. Neither of us are happy with the idea of this.

.

Credit to yourselves.

The social worker was probably complaining in the next breath how over stretched the public services finances are.

IanManc

Chrystal wrote: »

We were told by Social Worker to sell this house and spend as much as possible on a new bungalow, in order for us to be below the threshold, and thus able to still get financial help with Personal Assistant etc. Neither of us are happy with the idea of this.

However well intentioned, your social worker doesn't have the expertise to give you financial advice on your inheritance.

The fact that neither of you is happy with the opinion expressed by the social worker speaks volumes - we have these gut reactions for a reason.

Moving house can be stressful at any age. If you had never felt a desire to move, are happy in your home and it can be adapted to your needs over time if necessary, then don't move.

Money doesn't of itself bring happiness, but having some money behind you stops you worrying about being short of money, and it brings independence and choice.

While you consider things you might think of putting the money in National Savings Income Bonds where the whole of the capital is protected and you get a small monthly income of 1% AER from it while you take time to consider what to do. That would remove any sense of urgency or pressure to make a decision, and give you space while you decide what you both want to do.

Getting this inheritance is a nice thing not a problem, and I hope that you both have many years together in which to enjoy it.

cashbackproblems

I forget the term but if hmrc thinks you have spent away cash to be eligable for benefitsit can refuse you the benefit you are applying for

JohnRo

cashbackproblems wrote: »

I forget the term but if hmrc thinks you have spent away cash to be eligable for benefitsit can refuse you the benefit you are applying for

Deprivation of assets.

http://www.ageuk.org.uk/home-and-care/care-homes/deprivation-of-assets-in-the-means-test-for-care-home-provision/

xylophone

Would a new bungalow fully adapted for your spouse's needs make your lives happier and more comfortable?

If so, consider it! Apart from his needs, such accommodation might prove to be the most practical for you yourself in the years to come?

Chrystal

]Deprivation of assets.


As stated in my first post we have no intention of doing any such thing. I gave my background to let people know that I have next to no knowledge of financial matters.... that does not mean that I have no sense of obligation for the help we have received in the past and now no longer need.

From the bits I have read it would seem that I have 6 months, after receipt, to get these finances sorted out. I don't know if there are strings attached as to which kind of account they can be put in, but would have thought that high interest accounts would be out of the question as they could only stay there for 6 months. Any suggestions?

We have discussed moving into a bungalow and selling our house. This will obviously take time and while I can hope it would be done in 6 months there is no guarantee of that timescale.

People have mentioned Financial Advisors, is there any way of knowing how independant/good they are? I'm aware from reading the forum that Bank advisors just push there own product regardless of the customers needs.

This is all falling on my shoulders as all OH keeps saying is he wishes he'd never been left the money and telling me to do what I think best :eek:

Linton

Why do you think you have 6 months to sort things out? Surely once the money has been distributed by the executors your husband can do what he wants with it.

If you want professional advice look for an Independent Financial Advisor (IFA). Bank advisors arent IFAs. You should be able to find a few in your local town - get a free half hour consultation with say 3 of them and choose the one with whom you feel you can most easily work. Recommendations from friends and neighbours may help. By choosing an IFA you can be sure that there is no danger of commission affecting the advice on investments - you will be charged directly for the advice and then subsequently for any work required to put the investments in place. IFAs dont receive commission on investments.

Whilst you are waiting to sort things out perhaps the best place for an amount as large as £250K is National Savings (NS and I) as all the money is completely guaranteed by the government. The interest is about 1% but with the help of an IFA it shouldnt need to stay there for a long time.

ChesterDog

Where does the "six months" come into it?