Reclaiming Capital Sum from an Annuity with Rothesay

Options
On behalf of my father.  He has an Annuity from Rothesay which pays out just over £200/year which he took out for his wife in the early 90s.  He is keen to get back the capital sum to help pay for care home fees for his wife.  However, he's now discovered it's 'non-communicable' and that's what he would have signed up to.  What escape clauses are open to him to recover this capital?  Is there a sliding scale of fees that Rothesay is likely to charge for repayment of the capital sum?

Comments

  • Albermarle
    Albermarle Posts: 22,458 Forumite
    First Anniversary First Post Name Dropper
    Options
    If it is a Lifetime annuity , then he can not change it at later date . 
  • Tons700%
    Options
    Hi Albermarle.  Many thanks for your advice and very swift reply.
  • dunstonh
    dunstonh Posts: 116,577 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    He is keen to get back the capital sum to help pay for care home fees for his wife. 

    There is no capital sum.  

     What escape clauses are open to him to recover this capital?

    None, because there is no capital.

    Is there a sliding scale of fees that Rothesay is likely to charge for repayment of the capital sum?

    No. because there is no capital.

    When he bought the annuity, he exchanged the capital for a guaranteed income for life.  The capital ceased to exist at that point.


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Old_Lifer
    Old_Lifer Posts: 780 Forumite
    First Post First Anniversary
    Options
    I think you mean the annuity is  'non-commutable'. 
Meet your Ambassadors

Categories

  • All Categories
  • 343.6K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.8K Work, Benefits & Business
  • 608.8K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards