Paying For Care Home

[Kazal]

i am a widow living on my own and own my home. I have been diagnosed with a debilitating terminal illness. At the moment I pay for carers to help me for a couple of hours a day. I decided
I would be better off in a care home self funded by the sale of my house. Simple?? Oh no. I was advised to appoint an Independent Financial advisor and so far have spoken to two. Their advice is to purchase an annuity that would cover my stay until end of life. But what if I passed in the first year, the majority of the proceeds from my house would be left with the insurance company. The charges for the IFA are well over £1k .
The alternative is investment , and for them to arrange that they charge a percentage of the amount invested and this could amount to £3.5k to £4k !! Doesn't seem right to me.
Has anyone had to deal with similar situations ? How did you sort it?
Any advice would be gratefully received.

[AuntPollyGrey]

Who advised you to appoint an IFA ? No one can stop you selling your home, putting the money into a bank account and paying care home fees out of the bank account. This is by far the simplest way to do things and you are not lining the pockets of 3rd parties. However, you may need to be able to finance years of care doing this, so it depends on how much money your home is worth and how long you think you may survive.

[bhg481]

Since you care what happens to the remaining money when you die, can you not give Lasting Power of Attorney to someone who will inherit the residue? Sell your house and they will invest the money and pay your care-home fees until either you die or the money runs out and the council takes over the payments.

[Kazal]

aunt polly grey I was advised by our councils Adult care social worker and also Age.uk
My daughter is my LPA. We need to invest the proceeds in a higher rate savings investment and would advice. It is such a minefield

[TonyV]

Kazal, do have independent funds to pay your care home fees? If so I would not sell your home at the moment, but rent it out. Typically agents will charge around 15% of the rent to manage the property, so neither you or your daughter have the burden of dealing with tenants.

[bednobs]

hi Kazal, as far as i recall you have MND i believe?
In which case you probably already know you are unlikely to have years and years left. How many years at (say) 5ok a year would selling your house cover?
The only experience i have with this was when in worked in the continuing healthcare team (NHS funded care). We were dealing with refunds for the estates of people who should have been NHS funded but were self funded People who had an annuity created a very difficult situation and invariably their estates did not recieve the refund.

[bednobs]

however, another thing you should consider is this: if your house sale will only cover a shortish time ans ss take over the funding you may find yourself being moved from the CH of your choice

[TonyV]

Sorry my advice as you stated property sale will fund your care, I didn't read your question correctly. But you could consider renting if the income would cover your care home fees.

[bednobs]

unless kazal hasa mansion it seems unlikely - a carehome in this neck of the woods costs about 1K a week

[woofgang]

You can arrange your own investments and you don't need advice. you can buy advice on a fixed fee basis and then make the arrangements yourself. Yes if you want somone to manage your investments, they will charge you for doing it, just as if you want someone to clean your house, they will charge you for doing it. Social services REALLY can't give you advice about managing your finances. Get advice HAS to be their stock answer, same as it had to be mine when I worked in the NHS I mean this politely but its a gamble. if the annuity will pay your fees for the rest of your life, (it would need to be a honking annuity!) then you are sure to be able to stay where you choose. if you sell the house and invest the money, unless is a huge house in a high value area, that will slow the trickle of money but I am betting you won't be able to avoid eating into your capital whether or not you invest yourself or employ a manager.
I am so sorry, you don't need the added stress and neither does your daughter. I think really if it was me I would be deciding what is the most important thing to me....staying in the place I chose but knowing the money would die with me or maybe leaving money behind but risking having to move care home.....but either way are you SURE that your choice will fund your care?

[Peter Pedant]

am I right in think a load of walk-ins ( us, AB ) are giving advice to someone who has already taken advice AND
has heirs keen to make sure than no profits are made save by them?

yes indeedy

what would I do
live at home as long as poss

[woofgang]

yes we are PP....because sometimes external views can point you at something you haven't thought of......If it was me then I agree with you...but neither of us are the OP.

[Hymie]

Sorry to hear that you have been diagnosed with a terminal illness – before taking such a drastic step as selling your house to fund your care, you should arrange an assessment as to whether you qualify for NHS Continuing Care (whereby all your care costs or funded by the State regardless of your wealth).

See this link:-
https://www.nhs.uk/conditions/social-care-and-support-guide/money-work-and-benefits/nhs-continuing-healthcare/

[woofgang]

Hymie, care costs are funded but not care home (residential) costs

[ubasses]

I

[ubasses]

If Continuing Care is authorised, all the Care Home costs are met in full. My Mum went onto this funding towards the end, there as nothing further to pay.

[woofgang]

ubasses, I am guessing that the rest of your Mum's fees were covered by social services?

[Kazal]

Thanks for all your answers. I do not want to stay in my own house with full time Carers (how would I fund it for a start ?} neither can I face seeing my home turned into a mini hospital. I am just trying to find a simpler answer to this stressful situation and hoped someone had been through it and could offer some advice regarding investing the proceeds from the sale of the house without incurring huge costs.

[ubasses]

No, fully funded by Continuing Care.
From Age UK Website:
What is NHS continuing healthcare?
NHS continuing healthcare is a package of care for people who are assessed as having a 'primary health need'. It is arranged and funded by the NHS.
If you receive care in your own home the NHS covers the cost of care and support you need to meet your assessed health and associated care needs, which includes personal care such as help with washing and getting dressed.
If you receive NHS continuing healthcare in a care home the NHS pays your care home fees.

[woofgang]

oh ok...then social services refund to theNHS

[ubasses]

There are two different types of funding, Nursing Care where the NHS make a payment to the Home and the resident (or Social services if they do not have the funds) pay the top up. My MIL had this. In Mum's case she got full funding, at that stage she would not have qualified for any Social Service funding as she has not reached the £23500 threshold.