Sale of house for nursing home fees - what to do with the ££?

[notaflyingmonkey]

I'm just about to sell DM's house to pay for her nursing home fees. I'm going to have some thousands of pounds for a few years, so wondered what I should be doing with it that is safe and could accrue interest? (I have financial POA).

If you need to be sure of not losing any of the capital, I would split it into several savings accounts. Keep the amount in each below the amount guaranteed by the FCAS (currently £85000). Also split between "easy access" and locking away for 1 year, 2 years, 3 years etc. If you are intending the money to pay care home fees, work out how much you will need for each year and split accordingly. To pick accounts with best interest rates, read Moneysavingexpert.com (Martin Lewis) on the subject. www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Excellent advice. If it's too hard to manage in different accounts, let's say 1 million, then put it into National Savings and Investment where the £85k limit doesn't apply.

May be worthwhile getting advice from an independent financial advisor?

Our local council allows you to rent out the house, use the rental money to pay the fees (which won't be enough for the full fees) then they pay the shortfall and take a charge on the house. Is this worth investigating? Then you hang on to an appreciating asset for the moment.

@passport123 can I ask which council that is please?
Were about to start selling dh grandmothers house ( he has POA financial) to fund care.

Hertfordshire

Get independent financial advice as you are talking about large investments and savings- most of which will need to be readily available over the years to pay care home fees

It's called deferred payments agreement scheme and all Local Authorities may consider this - caveat is that it depending on very specific financial and property eligibility criteria and also assessment of the persons needs for residential care and appropriateness cost of placement (so for eg you might not have entirely free choice if wanting to select a very expensive placement)

But yes you can rent out rather than sell the property in some circumstances

Rental income may be considered in financial assessment

Further to @passport123 's comment to add to below

Deferred payment agreement (DPA) scheme is effectively a financial charge against the property for fees as a "self funded/ full cost" person effectively borrowing against the house which will be less amount given rental income coming in- get financial advice independent as there are Costs involved

The LA don't take charge OF the property , you'd have to manage the rental landlord arrangements.