Immediate care needs annuity

lisyloo

I have deputyship for my MIL who is in a nusing home.
She can walk but needs assistance of 2 carers.
She has dimensia and is 91.
She has been quite well in the home although is quite frail and thin.

I’ve just sold her flat and I think her money will last 5 years.
She does have a sister who is 95 and the home keep her well - clean, fed, watered and safe from falls I.e. she could live many more years.

We know there are some dreadful homes in our area because we visited them.
My fear is that if she ran out of money she could be moved to a dreadful home, so I’m considering an annuity.

I have a good FA, but are there any things I should ask e.g. max payment period, min payment period, annual increase?
I would of course make sure family are in agreement but I’m certain they would also not want her moved to one of the dreadful homes and no one in the family could pay the rather large shortfall or provide 2 carers 24/7.

She gets funded nursing care and AA.
Little chance of her getting CHC as her medical needs are few.
I’m really looking for things I need to ask.

Thanks

xylophone

Little chance of her getting CHC as her medical needs are few.

Have you tried?

https://www.communitycare.co.uk/2017/08/29/primary-health-needs-demystifying-continuing-healthcare/

Re annuity see post 4 here

https://forums.moneysavingexpert.com/discussion/5894044/immediate-needs-annuity-question

lisyloo

xylophone wrote: »

Have you tried?

No, but as her health needs are a couple of tablets per day I’m confident she won’t qualify for CHC and that she has been correctly assessed.

Thanks for the link.
I appear on that thread 5 months ago but we’ve now sold the property and she continues to be well.

Keep_pedalling

Cant help with your questions, but any decision you make has to be solely in her interest, any objections from the family should not be allowed to overrule that principle.

lisyloo

Thanks, I’m very much aware of this
Actually it could benefit family members I,e, they get an inheritance, but of course that is not part of the decision making process.

Naturally I’d want to consult family and clearly I didn’t take on the job to destroy relationships including my marriage.

But it’s nowhere near clear cut at all.
The consequences of having to go to an awful home after 7 years in the current one are dreadful, but the likelihood of both running out of money and the LA enforcing the move are on the low side and it’s impossible to quantify.
I don’t think I can come to a decision alone without discussing it with anyone.
One reason for coming here is to try to find out if there are any angles I haven’t thought of as the forums are pretty good for that.

LHW99

For an immediate care need annuity, you need to have POA, which you have, but a doctor will have to complete a medical assessment. There are I think only 2 companies offering these, and you really need an IFA who is a member of SOLLA
https://societyoflaterlifeadvisers.co.uk/find-an-adviser/

Marcon

Before doing anything else, have you talked to the nursing home to see what they can suggest? Rather than buying an annuity (with the commercial mark-up and admin costs the annuity provider will impose), see if the home might accept a lump sum now to look after her for the remainder of her life.

xylophone

for the remainder of her life.

Who knows how long that might be?

My relative's relative went into a residential home at the age of 91 - she will be 97 in a few weeks having gone from residential to care to nursing home........

lisyloo

Marcon wrote: »

Before doing anything else, have you talked to the nursing home to see what they can suggest? Rather than buying an annuity (with the commercial mark-up and admin costs the annuity provider will impose), see if the home might accept a lump sum now to look after her for the remainder of her life.

I will look into it but how do I guarantee the home stays open or in business? And the lump sum is protected? And what happens when the deal doesn’t go the home’s way and they really resent her being there ??

With the annuity we won’t be guaranteeing a particular care home, but guaranteeing a level of income which will keep her out of overmydeadbody LA funded homes.

lisyloo

xylophone wrote: »

Who knows how long that might be?

My relative's relative went into a residential home at the age of 91 - she will be 97 in a few weeks having gone from residential to care to nursing home........

I’m coming round to the way of thinking that we lose out on our house not burning down every year but no one complains about being out of pocket.
The only difference here is the size of the premium but the logic is the same.
No one complains that they didn’t have a car crash, get burgled, get cancer etc. And they are now down on the deal with the insurance company.

My SIL has twice said that she/he (MIl/FIL) is NOT going into “overmydeadbody” grove.

However when the money runs out SIL will be 63 with SPA of 66 and her partner will be 71 and on SP, so I don’t know how she expects to give up work or manage a hoist in her tiny downstairs cloakroom.

We won battles with the LA in 2017 and 2018 but had the advantage of bed blocking in hospital for which LAs can be fined. No guarantee of what will happen 2024 except we know LA are likely to be even more hard pressed.

Sea_Shell

What % of her assets were you thinking of using to provide the annuity.

It's just you mention still being some inheritance for benefit of family.

Surely once an annuity is bought, pays out and then finishes (on death), you don't get any money back. Are these types (immediate care) different??