Care Home Costs

DAB01

Could you please advise the best investment plan for someone who is in
a care home?

My mum has £230,000 and I have power of attorney and Court of Protection.

I was looking along the lines of a 1 year or 18 months plan

dunstonh

Could you please advise the best investment plan for someone who is in a care home?

Cash savings.

I was looking along the lines of a 1 year or 18 months plan

Far too short for investments.   Stick to cash savings.    yes, the money will go down as it won't cover the costs but it is the only logical option unless you go for an annuity.

eskbanker

DAB01 said:

Could you please advise the best investment plan for someone who is in
a care home?

My mum has £230,000 and I have power of attorney and Court of Protection.

I was looking along the lines of a 1 year or 18 months plan

How many years of care home fees would £230K cover?  Seems unlikely that all that would be depleted over 12-18 months, so it may be that some sort of mix'n'match fixed term savings ladder may be appropriate, i.e. easy access for money needed over that period but potentially fixing longer term funds....

Perhaps have a chat with one of these?
https://societyoflaterlifeadvisers.co.uk/

cloud_dog

DAB01 said:

Could you please advise the best investment plan for someone who is in
a care home?

My mum has £230,000 and I have power of attorney and Court of Protection.

I was looking along the lines of a 1 year or 18 months plan

My mother has been in a care home now for almost 1 year.  Cost is approx £5600pm.

With regard to funding this (similar numbers to yourself), I have simply used a combination of short term fixed (6 month), notice, and easy access.  I have create a drawdown spreadsheet so I can visualise the reduction of the available (easy access) pot, together with ensuring the completion of the fix or notice period marries up with the ongoing drawdown cost requirements.

A couple of months ago my mothers property was sold so, going forward (over the next few months) I will probably utilise 1 and 2 year fixes, together with easy access and notice accounts to manage the funds.  Unsure if this really helps or not

[Deleted User]

My Mum has just gone into a care home in Scotland aged 94 years. I hold power of attorney.

She is self-funding but (in Scotland) everyone in a care home gets £212 per week paid by the local authority for "personal care". This is universal (not means-tested), I know this doesn't exist as such in England (but may exist in a different format).

The fees (after deduction of the local authority contribution) are (currently) £1205 per week. We are being threatened with a mid-year inflation rise in October, then another one in April 2023, it's terrifying for those trying to plan.

The annual fees are 52 X £1205 which is £62,922. Mum is lucky to have two occupational pensions plus full state pension. After income tax, her annual income from pensions is £26,327. This means that £36,595 has to be found from capital.

At the moment I am paying the shortfall on the monthly fees (after putting all pension income towards the fees) from cash savings. Her cash savings stand at about £161K. She also has a discretionary managed share portfolio standing at about £500K which will be used if and when the cash savings run out. She has very little incidental expenditure (just hairdressing, chiropody and toiletries) which I pay for myself.

It's a huge and worrying financial burden but Mum is now very frail, immobile,  with advanced Alzheimers' (and other issues) and needs the best of care. I am (so far) reasonably satisfied with the care she is receiving but, at the price we are paying, I somehow never feel totally satisfied.

Sometimes I look at the younger, and apparently fitter residents in her care home and wonder how it is all being paid for. I looked after Mum at home on my own for 4 years and don't regret it for a moment but I realise that not all families are able to do this.

talexuser

The average stay in a care home for dementia is between 2 and 3 years. Cash is your only option, easy access for the first year, and then 1 or 2 year fixes to maximise the return as the money becomes available. There will be small extras for hairdressing, chiropody, dentistry possibly so make a spreadsheet to plan ahead the required fees. 

Brie

MiL was recently moved to a care home from hospital (& has bounced back and forth since).  The local authority chose the home based in part on the fact that eventually they may have to pay for it so it's cheaper than some of the others available.  But MiL is supposedly self funding for the time being though she has significantly less money than the OP's mom.  Anyways the home is £1k a week.  Being in England this means that she'll need to pay this (plus any extras like hairdressers etc) until she gets to about £23k in savings.  Taking into account pension payments in and fees out the £23k mark won't be hit for about 2 years but for ease we're just leaving everything as she already had it - in cash, in the bank, despite the dreadful interest rates.  Main reason at this point as we don't have POA.  We can access the money (legitimately) but don't want to get into any arguments with the social workers who so far have appeared to be dithering idiots.  It's just not worth the hassle of arguments with such people.  

Mojisola

DAB01 said:

Could you please advise the best investment plan for someone who is in
a care home?
My mum has £230,000 and I have power of attorney and Court of Protection.

Is she claiming Attendance Allowance?  Every bit helps towards the costs.

[Deleted User]

Regarding attendance allowance, I checked this out when my mother went into a care home in May. In England, self funders can claim AA, either at the lower or higher rate (depending on care needs). When the local authority is fully or partially funding the care home fees, there is no entitlement to AA. In Scotland, self funders are not entitled to AA, this is on the basis of the universal entitlement to (currently) 212 pounds per week towards care home fees in respect of the personal care (help with dressing etc) element of the fees.

jimexbox

Have a read of the care home funding changes, which are meant to coming into force October 2023.

It seems nothing you've paid before this date counts, but going forward fees are capped. 

cloud_dog

jimexbox said:

Have a read of the care home funding changes, which are meant to coming into force October 2023.

It seems nothing you've paid before this date counts, but going forward fees are capped. 

I think it is a little more granular than that, e.g. care costs might be limited but not associated living costs.  I'll admit not having read it in detail but that is my understanding from the early announcements.