Investment bonds

DL39CP

My elderly mother has recently gone into long-term care and I am POA for her. I will shortly be needing to do a financial assessment as she is currently self funding. Someone has told me that money invested in an investment bond is not used for assessment purposes? My question is whether or not this is the case, and whether money which currently sits in the maximum amount of premium bonds could be entirely or partially transferred into an investment bond?

Brie

Can't say for sure but it does sound like a good fiddle to avoid paying for care.  What's more if your mom has premium bonds now and moves them elsewhere the local authority will be questioning where the money has gone and why.  And likely would consider it under the deprivation of assets umbrella.  

Marcon

DL39CP said:

My elderly mother has recently gone into long-term care and I am POA for her. I will shortly be needing to do a financial assessment as she is currently self funding. Someone has told me that money invested in an investment bond is not used for assessment purposes? My question is whether or not this is the case, and whether money which currently sits in the maximum amount of premium bonds could be entirely or partially transferred into an investment bond?

There's a very helpful article here: https://techzone.abrdn.com/public/iht-est-plan/Tech-guide-long-term-care

Scroll down to the section headed 'investment bonds'.

Beware: if you cash in the premium bonds and move with the intention of avoiding care home fees (and that's clearly what your intention is), then it will be seen as deliberate deprivation of assets and the newly-purchased investment bonds are almost certain to be taken into account in the financial assessment.

dunstonh

Someone has told me that money invested in an investment bond is not used for assessment purposes? 

Correct.  The capital element of the bond (i.e. the value) is not included.  However, anything drawn from it is.

My question is whether or not this is the case, and whether money which currently sits in the maximum amount of premium bonds could be entirely or partially transferred into an investment bond?

It's too late. They could be put into an investment bond, but the local authority would include them under the deprivation of assets rule. They have to go into an investment bond before any inclination that a means test is likely.    

Keep_pedalling

Shifting money into a bond now would almost certainly be deemed as deprivation of assets, and your POA does not give you the authority to do this. This is not in her best interests, it is in yours.