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Best banking option for elderly/infirm person in care

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  • 18-01-2008 7:28pm
    #1
    Onikage
    Registered Users Posts: 1,451 ✭✭✭


    I'm wondering if anyone is in this situation or has some good advice. An elderly relative is currently in a private nursing home. As there is no possibility of living independently, the family home has been sold and the money is used towards the nursing home fees. However, the money is sitting in a current account, basically losing value every year. What is the best solution for putting a large lump sum in an savings account yet still being able to draw enough to cover fees every month?


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    #2
    broker2008
    Registered Users Posts: 750 ✭✭✭broker2008


    I had a big long reply typed up but had to log in again.......

    Bank account route: Do your research for best interest rates maybe one account for short term, quick access and one or two other accounts which offer better inetrest rates for tying up for longer term.

    If there was 300k and say 5% interest, 15k might not be enough to pay for care so therefore there would be capital erosion.

    If the sum was higher , one might consider bank accounts and also some in an investment bond, maybe a with profit bond, low risk. Could leave for growth and if needed take upto 6% income without penalty at later stage. One could get into one of these upto about 85 years of age. Other funds would be too much risk and too much hassle.

    Keep records of all transactions. If there are a couple of relatives involved, organise a get together and devise a strategy that everyone (except brother and sister in laws !!) agrees with. If there is angst go down the bank route with best interest rate and organise withdrawals to pay for care.


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    #3
    broker2008
    Registered Users Posts: 750 ✭✭✭broker2008


    Oh yeah, DO NOT put all into a bond paying an income of upto 6% because if markets don't perform or bonus rates are not high enough, capital can be eroded if though you might think that it is a guaranteed dividend bond.


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    #4
    Onikage
    Registered Users Posts: 1,451 ✭✭✭Onikage


    Thanks for the help!

    Bank accounts may be the best option, I'm not comfortable with the idea of making risky investments with someone elses money in these circumstances.

    Ps. if you lose a long reply, you can sometimes recover it by hitting the back button in the browser but a safer strategy is to select all the text and copy to the clipboard (Ctrl+C) before posting.


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