Case Study: Working with Solicitors who are acting as Deputy

We were introduced to a firm of Solicitors who were seeking professional advice prior to investing their client’s financial assets on her behalf.  The Solicitors had been appointed as Deputy and approached BLM Partnership for an assessment of the client’s savings and investments.

It was important that we gained a thorough understanding of the client’s circumstances before making a recommendation:

  • The client, Mrs G, had dementia and had been deemed unable to make decisions for herself.
  • Mrs G had children and family but they did not wish to be involved with the care of her affairs.
  • The Solicitors were, therefore, appointed to act as Deputy.
  • Mrs G had savings which was mainly being held in deposit accounts. This money was being used to fund her long term care.

The Solicitors wished to ensure that Mrs G’s money was dealt with in the best possible way and that they fulfilled their duty as Deputy, as they may be held accountable.  It was, therefore, essential that they seek professional advice about where to deposit and how to invest Mrs G’s money in order to make it last as long as possible.

How we helped

We familiarised ourselves with Mrs G’s situation and requirements including the cost of her care and her state of health.

We then looked at a range of options from maximising deposit account returns to the purchase of an immediate care annuity.  An annual review was arranged so that the situation could be reviewed periodically, taking into account any changes to Mrs G’s situation.

The Solicitors main concern was that they could be held accountable by the family if they were deemed to have somehow squandered Mrs G’s money. By taking advice and acting on it, they would be able to demonstrate that they had taken all reasonable care to ensure the longevity of Mrs G’s savings.

As Mrs G’s savings reduce and go through the upper limit of £23,250 to the lower limit of £14,250, further advice will be needed as this is the sum that likely passes to her beneficiaries.

Our case studies are designed to give you an insight into how we have advised a variety of clients on their specific financial needs.  It is intended for information and illustration only and should not be taken as individual advice.

If you have any questions relating to your own circumstances, please contact us.

* In order to protect the confidentiality of our client’s, we have changed the names in our case studies.  They are, however, all based on the real life experiences of our clients.

Case Study: Long Term Care

We were introduced to a family who were looking to secure a place in a residential home for their mother and needed to find a sustainable way to fund her care for the foreseeable future.

We met with the clients to gain a thorough understanding of the situation and the finances they had available to fund their mother’s care:

  • The client’s mother, ‘Mrs A’, was 84 years old and her mobility had deteriorated to the point where she could no longer safely live alone.
  • The main cause of Mrs A moving from her own home was because of mobility problems rather than chronic health problems.
  • Mrs A had sold her own home for £250,000, which meant that she was a ‘self-funder.’
  • Mrs A’s children had looked at many different homes and decided on the best one for their mum, which would cost more than the local authority would normally pay.
  • The cost of the home was £544 per week.
  • The local authority would generally look to pay much less than this; typically £424 per week.

The family’s primary concern was that, if Mrs A’s money ran out, her place at the care home would be under threat at a time when she was likely to be much more vulnerable.

By helping the family to find a means of funding their mother’s care, we could provide them with the peace of mind that their mum would be safe and secure in the long term.

How we helped

We recommend an Immediate Care Annuity [ICA], which would meet the family’s needs by paying the care home fees, a total of £28,325 per annum, for the rest of Mrs A’s life.

The family negotiated with the care home that the cost of care would not rise for the first five years and, after five years, only by no more than inflation. The care home accepted this because they felt that the longevity of the place was secured.

The ICA was fully underwritten as the provider gathered all the necessary medical information relating to Mrs A so that they could assess her perceived longevity.

  • The ICA cost a total of £160,000.
  • The family were able to pay for the ICA using the proceeds of the sale of Mrs A’s house.
  • Mrs A retained the balance of £90,000 to ultimately pass on to her children or to provide the top up of cost between the ICA and increasing care home fee’s as time passes by.

The family’s objectives have been achieved by ensuring continuity of the majority of the care home fees by transferring the ‘risk’ of money running out to an insurer.

Now 3 years down the line, Mrs A is happy in her residential care home and the family have invested the £90,000 residue from the sale of her home in suitable investments for use later, if needed.

Our case studies are designed to give you an insight into how we have advised a variety of clients on their specific financial needs. It is intended for information and illustration only and should not be taken as individual advice.

If you have any questions relating to your own circumstances, please contact us.

* In order to protect the confidentiality of our client’s, we have changed the names in our case studies. They are, however, all based on the real life experiences of our clients.