When an elderly relative needs long-term care, it can be a difficult and stressful time for all concerned. And when you’re not sure how that care is going to be paid for, or how it might affect the family finances, it’s likely to add to the burden on everyone’s shoulders.
This was the situation that Connor* and his mother Sarah* found themselves in.
Sarah was 95 at the time, and they had come to the conclusion that she was no longer coping with living on her own at home. Fortunately, they were able to secure a place for Sarah at an excellent care home with round-the-clock nursing care, but the fees of £72,800 per year were way above her annual income.
To meet the shortfall, Connor, having been granted Power of Attorney by his mother, had arranged to sell her house in South West London for just over £800,000.
However, he was extremely concerned about how long the proceeds would last and how best to structure the family’s finances to ensure everything was in good shape for both the present and the future.
The situation, admits Connor, was troubling.
“When she was in her own home, Mum was getting more and more anxious about who her carers were going to be and how this and that was going to happen,” he says.
“It was becoming too great a challenge for her, and it was too much on me. But she’s a very strong personality who doesn’t have any illusions about her capacities, so she recognised that moving to a care home was the best way forward.”
