A few months ago Bob approached us here at MFP Wealth Management because he was very worried about his mother’s continuing care fees.
His mother, Elsie, had been in care for the last two years and it was becoming increasingly obvious that her fees were eroding away her investments and savings. Elsie still owned her property and was hoping it would not have to be sold, as it was important to her to pass her home on to her granddaughter to help her onto the housing ladder.
This would guarantee all care costs could be met for life.
We took a look at Elsie’s situation and quickly established that she hadn’t been assessed for Attendance Allowance. We recommended that Bob arranged this as soon as possible. In the meantime, we examined his mother’s income and outgoings and established that her savings and investments would be fully depleted within the next couple of years.
To ensure that both Bob and his mother could be confident she could afford the ongoing care that she needed, without the worry of running out of money, we suggested exploring a Lifetime Care Annuity. This would guarantee all care costs could be met for life.
On further clever negotiation
Bob was delighted to discover that his mother was eligible for £82.30 per week in Attendance Allowance, but sadly the care annuity cost just exceeded Elsie’s available liquid funds. On further clever negotiation with two annuity providers we managed to secure a significantly reduced annuity that was affordable and would guarantee Elsie’s ongoing care for life.
This has provided Bob with peace of mind that his mother will be financially secure and cared for as she wishes to be throughout her lifetime. The annuity purchase also allows Elsie the pleasure of being able to pass her home on to her granddaughter in time.
If you need advice on funding care for your loved ones, please get in touch or click the link below to download our free Care Fees Planning Guide now.