A widowed gentleman with no children had moved into a high quality care home because he no longer wanted to live on his own. He was ‘self-funding’ fees of over £4,000 a month and was concerned that he might run out of funds during his lifetime and be forced to move to a home of the local authority’s choosing which may not provide all the comforts he was currently enjoying.

We arranged for him to take out an Immediate Care Annuity, which essentially means that, in exchange for spending a pre-agreed lump sum he generates a tax free, guaranteed income which will be sufficient to meet all his future costs at the care home in which he currently resides.

If he ever moves to a new care home the income stream will be transferred to his new care provider and if he ever qualifies for NHS funded care then the income stream will revert back to him.

While this meant our client parting with a sizeable amount of his capital at outset, he can now enjoy complete peace of mind for the rest of his life, and the charity to which he leaves his estate will now be certain of a significant bequest.