Investing proceeds of house sale for care fees

KittyMac

Who do I go to for help with the above? Mums house just gone on the market and should sell for about £650/700k. Her current care fees are £6500 a month - she may live another week or another ten years. She has dementia and blood cancer but is quite a tough cookie.

We have had no choice but to sell as failed with a Deferral Agreement due to family members occupation of the house - long story but the Letter of Undertaking is now our only choice.

I am worried about how to keep her money safe - can it go into a legal trust or something that will look after her and it if anything happened to my brother or I? I don't want to put it at risk in any way.

Linton

I am not sure a trust would help.   The problem is not the ownership of the money - it is clearly Mum's, but rather someone to manage it.  If you had a trust you would need trustees so the position would not be very different.

Two things you could look at:
1) Keep the money safe as cash in an NS&I account which is fully guaranteed directly by the government.  No need to worry about £85K limts.  Bearing in mind that Mum's needs are relatively short term I would not consider any form of risky investment.

2) You could consider an immediate needs annuity  - see https://www.unbiased.co.uk/life/pensions-retirement/what-is-an-immediate-needs-annuity-how-does-it-work or many other google links.  This would guarantee sufficient to pay care fees for as long as Mum lives.  Apart from the lifetime guarantee the other benefit is that the money will turn up in Mum's bank account every month with no need for any involvment from you or your brother.

A STEP qualified IFA should be able to help.

theoretica

It is your mum's money, so I believe if the person, or people, she has given power of attorney to are unable to act the local authority step in.

tooldle

Speak to an IFA. I am in a similar situation in that I look after mum's assets. Mum's money is invested (managed portfolio). I am POA, as is mum's solicitor. The solicitor is not involved on a day to day basis, but is there for emergency cover or to pick up the reigns should i become unable to continue.