7% return on £700,000

EthicsGradient

Since the amount of income desired, when added to a state pension (not clear if there's any other pension involved) could near the higher rate band, would a ladder of maturing gilts to pay the anticipated fees each year be worth considering? It would be as safe as savings accounts, and thus should fit the LPA requirements, but avoid so much income tax (I suppose the calculation is not "7%*£700k", since you can't get 7% income from savings, but more like "5%*700k=£35k - so if it's only a state pension to add to that, it wouldn't get to the higher rate band. But it'd still be paying 20% income tax on most of it).

LHW99

Also, if going in to a care home, he should be entitled to Attendance Allowance, which is not means tested. The home will often initiate this if it is not already in place, but that should be checked.

adindas

LHW99 said:

@adindas With PoA you are restricted in your powers (as said above). 

If the person has already set up equity investments, and has previously been investing over a long term, then it may not be immediately necessary to sell those investments.

However, cryptocurrency investments are not for the majority of persons, even when in full health and mental capacity. That is unlikely to be the case with anyone going into care and with an active PoA.

(just in case a new poster thinks that was a reasonable suggestion)

I'm not advising anyone to get involved in Bitcoin unless they fully understand the risks. This especially applies to families with members in care homes with POA which you have pointed out that it is not allowed to take such risk. My point is believing that statistical data stating that the average stay in a care home is less than two years. It might be due to the sample selection, the family just decide the take care their love one by their on in their own home. Just look at around you, people in care home, your family, relatives, friends, and see whether this statement about the average stay in a care home is less than two years, is true. 

If you believe in this statistic and want to speculate based on it, you might be better to speculate in Bitcoin. There are a lot of statistics out there is misleading.

There's already a lengthy thread about Bitcoin on this MSE forum which a few years ago I also actively got involved in the discussion but I got a lot of personal attacks. As expected, vast majority of the comments are very negative, and if people who disagree just attack other people who disagree with them. But some people just choose to ignore it and rely on their own research and beliefs.

LHW99

I agree with your point regarding statistics, there are many who should know better (media / politicians) who quote them without understanding what they actually mean.

However people can also read with imperfect understanding particularly if stressed, so it is probably better to use a different analogy to draw attention to the deficiencies of statistics, particularly given the OP's question.