How is it best to invest mums money and avoid too much being taken by tax to pay for her care?

[SAP]

I suppose to make it fair you would have to insist people took Care Homes within the council area they lived.

And of course that wouldn’t be fair!

 

[Rayreadynow]

And of course that wouldn’t be fair!

Obviously. But at the moment people with high value assets are able to move into an area with lower property prices and displace local people from accessing a less expensive home.

 

[SAP]

Obviously. But at the moment people with high value assets are able to move into an area with lower property prices and displace local people from accessing a less expensive home.

But if you are looking at the care home scenario then my mum for example lived in an affluent area near London but I live 300 miles away. If I sold her home and left her in a care home in the area she was in the she would have no family or visitor and I wouldn’t be able to be as involved as I am in her care. Yes the care homes are cheaper where I live and so yes the sale of her property means she had enough income to pay for care and still leave some estate behind but she is near to me now and that’s what is important here.

 

[jugglingmum]

Obviously. But at the moment people with high value assets are able to move into an area with lower property prices and displace local people from accessing a less expensive home.

I very much doubt anyone moves from a high value area to a low value area just for the sake of reducing care home fees.

Similar to @SAP my mum lived 200 miles away and I brought her nearer to me, as there was no way with a job and young children I could provide the support she clearly needed from that distance, and in addition she'd have had no visitors.

My mum had some good years of being able to enjoy her grandchilden and they her whilst local before further deterioration.

There are many many posters on this board that move elderly parents near to them to enable the support needed to be provided, which isn't possible from a long distance. The decision certainly isn't financial but practical.

There's a whole raft of things that are unfair about the funding system (which have been discussed on many threads) but I think people moving from one part of the country to another to obtain lower care home fees isn't part of it, and only happens for family reasons.

 

[Rayreadynow]

There's a whole raft of things that are unfair about the funding system (which have been discussed on many threads) but I think people moving from one part of the country to another to obtain lower care home fees isn't part of it, and only happens for family reasons.

I made an assumption from a message I saw on my PWD facebook page...but thinking about it, it was from the son who must have lived locally. his mother had moved from Kent to a north somerset care home.

 

[cobden 28]

Hello, i have POA for my mum who is nearly 92 and moved to a residential home late last year. I have just sold her home ( which i cant tell her) as i need the money to pay for her care.

I am trying to work out the best way to invest it and was told to takeout some bonds after working out how much money she needs a year. Can i open those in mums name or do i open them in my name? Will she be taxed on any interest she makes? I am trying to make as much money as i can to pay for her care.

Is there a better way to invest her money?

I am conscious as having POA that if i do this wrong i can be liable for any looses.

Any advice would be much appreciated.

Many thnaks
Jo

After my stepdad died twenty years ago and many years before she developed alhzeimers, mu Mum contacted a financial adviser to help with her finances. She's never ever in her life discussed her personal finances with me so I have no idea what she's got or where, so the financial adviser has sorted all this out properly and legally for her.

 

[maggie6445]

It would be much fairer if the first £100, 000 of a house sale was totally disregarded regardless of spouse. It would mean that a pwd could have at least part of their will honoured after a lifetime of work. After all it's not fair that a vulnerable person who has a devastating disease is told how to spend their money or that they pay more for a bed than LA funded or that the interest is taxed when it will go on care. It's financial abuse of vulnerable people in my opinion.
It is not fair that it depends on it being the first of two parents and not the last whether the house value is spent on care.

If there is to be a truly fair system and not a health lottery it needs to be addressed properly

 

[Rayreadynow]

If you had to pay for NHS treatment by giving away any capital tied up in your house it would soon get sorted by the powers that be.

 

[maggie6445]

House sale for NHS treatment?? Public wouldn't allow it.so why is social care linked to illness ? It's not choice. ! The reason is because they are frequently old and vulnerable and can't speak up against it.

 

[Kevinl]

Buy premium bonds, relative rate of return is good, it is a government backed so safe and I've got about £800 worth of cheques to bank sat here.
I might win a million, this month who knows, but anytime I want I can cash the bonds in and get my money back as well cashing the cheques plus it's all tax free. K