Long term care

[marthasnan]

My father and mother (80 & 81 years) have lived apart for over 15 years. They have decided to release some money from their home by father signing over his interest to mother and in return receiving approximately £45k which my brother and I want to invest for him to give him an additional income. He only receives the state pension and a small occ. pension. He was turned down for pension credit because of his interest in the marital property. Father lives in warden sheltered accomodation.
It is highly likely that he will need long term care in the near future and we were wondering what would be the best way to reduce charges if this should happen. Can a savings bond be written 'in trust; to myself & brother to ensure that father's money remains intact?

[Peter D]

You need to seek professional advice, not there isn't professional advice on here but you need to and discuss ALL the facts 'one to one'. If the Authouries deem that you have acted in a way to shield resources from them for the care of your parents then can, an often do, recall the assets into the estate and declare those funds as care support. There are many factors involved here so take care. Regards Peter

[bob.fraser@towrylaw.]

If your father takes any action to try to avoid paying for long term care, then he may be deemed to have "intentionally deprived" himself of that asset.
It would, however, be reasonable to assume that he would want to take an income from the £45K. It would also be reasonable for him to do so by investing in an investment bond.
If he did this, then the "income" from the bond would be taken into consideration in assessing his contribution for long term care, but the investment bond capital itself would not be (an interesting quirk in the assessment system).

Bob Fraser
Chartered Financial Planner

[marthasnan]

Many thanks to Peter & Bob for this advice. Any advice on 'best buy' for an investment bond?

[bob.fraser@towrylaw.]

This will depend on attitude to risk, and level of income required.
If you want me to advise you on this, please contact me. I cannot give a blanket endorsement of a "best buy" in this forum as investments should be tailored to the individual.

Bob Fraser
Chartered Financial Planner
07769880476