Covering the cost of care – John and Emma


Emma approached us because her father, John, was going into a care home. She wanted to ensure his needs were met, whilst as much of her inheritance as possible was protected; which was ultimately to be used for her children’s education.

Aside from some modest savings, John’s only asset was his home, which was in the process of being sold.

He had a good amount of pension income, but not enough to cover the cost of care.

What did we do?

Having worked out the shortfall, we recommended an inflation-linked long-term care annuity to guarantee that there would be enough money to pay for John’s care fees for the rest of his life.

We then recommended the balance of the funds be invested into a risk-adjusted portfolio, with access available should he need to make additional payments or should care costs rise more than anticipated.

The outcome

Emma and John were able to meet John’s care fees and ensure he has a secure position in care for the rest of his life, without worrying about money. We were also able to ensure that the funds for Emma’s children’s education would be available when they reached school age.