Situation

Mary, aged 84, needed nursing care following a hospital stay.

Her family faced immediate decisions:

• Nursing home fees of £1,850 per week - £96,200 per annum
• A family home selling for £595,000
• Savings of £70,000
• Total net income of £24,200 per annum
• Shortfall required to meet care costs of £72,000 per annum

Her children were worried.

If care lasted several years, a large part of the estate could be lost to ongoing fees.

The biggest fear?

“What if the money runs out?”

The Challenge

Their question to us was: “Is this care home affordable for her lifetime, we do not want to be in a position where mum has run out of money and has to move to a cheaper Local Authority home”. 

The family wanted certainty — and to protect part of the inheritance if possible.

The Solution

After reviewing all options, we recommended an Immediate Care Plan.

A one-off lump sum of £212,640 was used to secure:

• Guaranteed payments to the nursing home of £6,000 per month to meet the ongoing shortfall
• Income paid for life and increasing by 5% every year to help towards inflationary care fees

This meant that Mary could enjoy her first choice of home while her family would have the peace of mind of knowing that the fees would always be paid. With her future secure, Mrs Grant was happy knowing she could leave her grandchildren a substantial inheritance of over £450,000 as her remaining estate was now effectively ring-fenced from the Local Authority.

The cost of a plan to provide a guaranteed lifetime income of £72,000 escalating by 5% every year was a lump sum premium of £212,640*.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

The advice provided was given after a full evaluation of their specific needs, circumstances and requirements. The solutions provided would not be suitable for all clients and the information provided does not constitute advice.

* 08/05/2025 This is an individual quote personalised and will vary depending on individual circumstances.

Outcome:

Mary chose to use part of her capital to secure an Immediate Care Plan that covered her care fee shortfall for life. This:

✔ Secured her care costs for as long as she needed care
✔ Removed the fear of running out of money
✔ Allowed the remaining capital to stay intact
✔ Helped preserve more of her estate for her family

Instead of seeing her estate diminish year by year, Mary now has certainty that her care funding is in place — and her family has greater peace of mind.