Forum menu
Hi all
I’m managing the sale of my mother’s property (she’s in a care home with dementia). The Court of Protection has asked me to provide a “Proposal as to investment of the Proceeds of Sale”.
Does anyone have any experience in this area?
I will need to settle her mortgage and some outstanding debts inc care costs (historic and ongoing). Agents / selling costs etc.
Any balance I would pop in to her bank for ongoing costs.
Is there anything else I need to be aware of or could/should be doing with it?
What about FSCS caps on (£85k) limit re bank failure? Should I spread any funds across multiple banks?
thank you
Nudge for the day shift...
I think that's the key, that popping it into the bank isn't an "investment of proceeds" as the interest will be much lower than inflation, hence being bad for the capital.
You should work out roughly how much will be left, then put together a more detailed proposal as to where it would be invested to get some sort of return whilst still allowing sufficient drawdown of funds to cover the ongoing costs on a monthly/quarterly etc basis.
Okay, thanks. Where would be considered a reliable home for an 82yr olds cash?
...assuming it could be as much as £200k but will be depleted by approaching £30k pa for care costs.
An established bank ‘high interest’ account offering 2% feels sensible ?
Bitcoins obviously :p
You will be over the 85k protection limit so probably sensible to split it. Don't forget that's an institution limit, some banks are in the same group. 2% sounds pretty decent for savings these days. Rates should be rising so be wary of fixed deals with lock in.
<span style="font-size: 0.8rem;">Do you actually need to sell? Any chance of renting it out to pay for ongoing care costs so you still have an asset?</span>
A SIPP. Edit-sorry, don't think that's possible.
Hi Nick, yes unfortunately we do need to sell. The Local Authority has formally expressed an interest in the property and requested that we sell in order to pay care costs...and it’s been empty for 18mths or so, so ultimately it makes sense to clean it up and move it on.