How to invest proceeds of house sale to pay for care.

eskbanker

Perhaps worth a conversation with one of the later life advisers who specialise in this sort of thing?

https://societyoflaterlifeadvisers.co.uk/

xylophone

Presumably you have factored in state/occupational pension.

How much of her care is covered by pension and higher rate AA?

Albermarle

A relative is determined to consult their financial advisor about  Mum’s house sale proceeds,

If they already have a financial advisor, then no harm in asking for their opinion. However they will be wary of offering any detailed advice regarding someone who is not a client, but should be OK to offer some general guidance.

Linton

Suziekettles said:

....
A relative is determined to consult their financial advisor about  Mum’s house sale proceeds, .....

mmm not good, we often see on these boards that families and money do not mix well.  The responsibility for deciding lies with Mum if she has the capability and, if not, yourself as PoA to act in Mum's best interests.  It is better if other family members keep out of it unless asked.

To extend Albemarle's point the Advisor is not in a position to advise on what Mum should do since he(she) would not know Mum's circumstances, Mum is not a client and I assume the relative has no PoA authority.

Suziekettles

Mum was an intelligent educated woman, she has lost much capacity, is largely bed bound, has no speech and her understanding is fairly simplistic. I share EPA with the relative who wants to consult their financial advisor, I know they care about our Mum but are also self interested.

macman

Is the EPA worded in such a way that both parties must consent, or can each act independently? Potentially a messy situation.
As others have said, investments are totally inappropriate for what might be a 2 to 5 year term (though of course you hope she will live longer). Split the funds across 3  1 year bonds, with enough to cover the first years care home fees, and then review in 12m. Rates are rising, though obviously inflation is much faster.

Shedman

dunstonh said:

The average life expectancy in a nursing home is 2 years.

The average (and that depends on whether you're talking mean, median or mode) includes those that are LA funded.  LA funded people are generally in far worse health, generally come from the lower social groups so already have an implied shorter life expectancy, and go into care homes later due to reluctance of LA's to fund people until they have to,   Also there is a skewed distribution curve for length of time in care homes with a lot of deaths occuring in the first 12-18 months and then a flatter elongated curve over quite a considerable period.  From the studies I look at when considering Care Fees Annuity for MiL, for self funders the average (mean) is more like 4 years with a not inconsiderable number lasting 10 years or more in care homes.  

So this oft trotted out 2 year average needs to be viewed in context.

Shedman

Unfortunately if the OP is looking at opening bank accounts using a POA they will that find there is a limited number (and diminishing) and even less that pay a decent rate.  And it is quite difficult to find out which ones do without actually contacting them.

Amongst the ones that I believe still do allow you to open using POA and have reasonable rates are Shawbrook, Aldermore, Hodge Bank, OakNorth and Cynergy Bank

Shedman

eskbanker said:

Perhaps worth a conversation with one of the later life advisers who specialise in this sort of thing?

https://societyoflaterlifeadvisers.co.uk/

From our experience I would second that.