Aunt’s money to invest

Kelvin_Hall

My aunt has, sadly, had to go into a nursing home. My sister has power of attorney and administers her finances for her.

Her house has just been sold for £125,000 and we need some advice on where to put this money till it is, in the fullness of time, used to pay for her care (she has a policy which should pay for the next year or so).

We are not willing to take virtually any risk with this money, so are looking for a safe place for it for around a year and also for the balance to stay in, as it is slowly used up paying for her care from then on.

I have no experience with sums as large as this and any advice would be greatly appreciated. She has a teachers pension but is in her eighties and retired for many years.

Thanks in advance.

MallyGirl

You need to make sure it is split between at least 2 organisations to get the £85k protection, unless you use NS&I

Linton

If the money is going to be used in the next year or two you should keep it in cash savings, not invested. One reasonable place for significant sums of money is NSandI which is guaranteed for any amount of money by the Government. It provides a moderate level of interest, a bit better than most high street banks.

To get a bit more interest you could look at keeping the money needed this year in cash, put next years money in a 1 year fixed rate account and money for the year after that in a 2 year fixed rate account.

Tcquins

Hi Kelvin,

You may want to look at an Immeidate Needs annuity with part or all of the funds to help pay the care fees.

If you go down this route you need to look up a SOLLA (society of later life advisers) accredited financial adviser who can help determine what is achievable with the lump sum you now have available.

xylophone

Has your aunt been assessed for Continuing Health Care?

is she receiving Attendance Allowance?


http://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html

If the cash is not required for a year, you might use a couple of one year bonds - Paragon and Investec perhaps?

Keep_pedalling

MallyGirl wrote: »

You need to make sure it is split between at least 2 organisations to get the £85k protection, unless you use NS&I

NS&I would be where I would place it.

Kelvin_Hall

Wow, Im amazed and delighted with so many answers so quickly.

We get bombarded with negativity through the media and it really is life affirming to find so many people willing to give considered advice to a stranger with no thought of any benefit for themselves. Normally Im a sceptical old sod but this has really brightened my day. Thank you.

It looks like the consensus view is to look at NS&I products and splitting it between different lengths seems sensible, so Im off to do that now.

Thanks again !

Kelvin_Hall

xylophone wrote: »

Has your aunt been assessed for Continuing Health Care?

is she receiving Attendance Allowance?


http://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html

If the cash is not required for a year, you might use a couple of one year bonds - Paragon and Investec perhaps?

Yes, thanks, she think she is getting that allowance.

chess_010

it may be that the attendance allowance now goes directly to the nursing home. worth checking and if this is used to lessen the amount due to nursing home for her care

xylophone

it may be that the attendance allowance now goes directly to the nursing home.

Not if she is self funding.

Relative's relative is a self funder and the AA goes to her bank account.