Margaret had recently moved into residential care following a decline in her health. Her son Joe, acting under Power of Attorney, worked with his siblings to ensure that appropriate arrangements were put in place to support her ongoing care.
The Challenge
The family’s primary concern was not only meeting the immediate cost of care, but ensuring that these costs would be covered sustainably over time, without creating uncertainty or ongoing financial pressure.
Margaret had a combination of savings and investments, but without a clear structure in place, there was concern about how long these would last and how best to manage them.
The Solution
We worked with Joe and his family to review Margaret’s financial position in detail, including her existing income, assets and expected care costs.
Given the circumstances, we introduced them to one of our advisers with specialist expertise in long-term care planning, Josh Cullen, who was able to guide them through the options available.
Following detailed discussions, it was agreed that using part of Margaret’s capital to secure a guaranteed income for life would provide the most appropriate solution.
This was achieved through an immediate needs care arrangement, which converts a lump sum into a regular, tax-efficient income paid directly towards care costs for the remainder of her life. These plans are specifically designed to cover care fee shortfalls, providing certainty regardless of how long care is required.
The Benefits
This approach provided the family with clarity and reassurance:
- The cost of care was covered in a structured and predictable way
- The risk of funds running out over time was significantly reduced
- Remaining assets could be managed more effectively alongside this arrangement
The Outcome
Throughout the process, we worked closely with the family, ensuring they understood each stage and were comfortable with the decisions being made at what was a sensitive and often emotional time.
Margaret’s care is now funded in a clear and sustainable way, allowing her family to focus on her wellbeing, rather than the ongoing uncertainty of managing care costs.
