Chestnut Financial Services

Chestnut Financial Services, Financial Advisers

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Independent Financial Advisers

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Chestnut Financial Services, Financial Advisers
Immediate care annuity advice from Ian Francis, Independent Financial Adviser
Immediate care annuity advice from Ian Francis, Independent Financial Adviser

A Case Study - Immediate care annuity for paying nursing home fees

Sarah is Simon's daughter. She acts as attorney for him under a Lasting Power of Attorney registered with the Office of the Public Guardian.

Unfortunately, Simon is widowed and suffering from dementia. Simon was living with Sarah until he recently moved into residential nursing care.

When it came to paying for residential care, despite Simon's total income (from his pensions and benefits) of £30,000 a year, there was still a shortfall of £20,000 a year. Simon did have savings and investments but wanted to leave these for all his family to inherit as much as possible.

Sarah's priority was that her father wouldn't run out of money and could continue to self-fund care for the rest of his lifetime. She was looking for a risk-averse, guaranteed method of meeting the care home fees.

What we advised on

Having got to know Simon and Sarah in our meetings, we ran through the possible options for funding the care, including any potential help from the NHS, the local authority, and any other sources.

An immediate care annuity pays a guaranteed income for life and is paid tax-free when paid directly to a registered care provider.

We obtained an indicative quote from a leading care annuity provider for Sarah and Simon to understand their options better.

Having understood the potential cost of an immediate care annuity and compared that to the other options being discussed, Sarah asked for fully medically underwritten quotes, to really firm up her choices.

We documented the choices and costs in a Care Fees Planning Report, including a recommendation for an immediate care annuity at a cost of £91,000 - well within Simon's savings and investments.

Immediate care annuity advice Photo of Ian Francis2
Why this was the right option for Simon

Sarah and Simon gained peace of mind and certainty that the care home fees could be met.

There was also a comfortable nest egg in other assets if the care home increased its fees in the future.

We never know how long we will be dependent on care homes or whether their costs will rise each year substantially, or whether our personal care needs will increase (and therefore the extra cost of those extra needs).

It's always important to recognise that the decision of whether to accept my advice was for Sarah and Simon, with no pressure from myself. An immediate care annuity is not the right choice for many clients, but for some, it is the right one. So taking care to give the right advice is really important to me.

Immediate Care Annuity Advice Photo of Farley the Labrador
A warm welcome from Farley
What's on your mind? Let's talk...

We offer a free, no-obligation, initial telephone consultation for new clients to answer some initial questions and help you with some first steps.

After that, we will then ask if you would like to set aside more time at a good time of day for you, when we can meet in person (with or without Farley), on video, or by phone, whichever is most convenient for you.

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What it means to be SOLLA accredited

Clients requiring financial planning in their later life benefit from advice that is clear and concise. Such advice comes from an adviser that is suitably qualified and experienced to advise them and manage their financial planning.

We have been advising clients on long term care solutions for several years now, backed up not just by professional qualifications but also by the membership of various professional bodies, most notably the;

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What our clients have said

"Ian has explained our story here. He was professional, knowledgeable, and caring.

As a family, we are so delighted to have met Ian and have introduced him to our friends, who in turn we know have found him to be a very pleasant and helpful adviser.

Ian has a key trait that we have all seen - he wears his heart on his sleeve, he is warm, funny, and genuine.

We heartily recommend him to anyone looking for advice."

Sarah, Newark

Important Information

Care fee plans do not guarantee to cover the full costs of the client's care, care costs are subject to inflation and care needs may increase. If the cost of care exceeds the income from the plan you will be responsible for paying the difference yourself. Plans cannot be cancelled or cashed in at any time after the first 30 days.

If the income is paid directly to a registered care provider, the plan benefits from a favourable tax treatment. Should this tax treatment be changed by HMRC or income be paid to a party other than a registered care provider, some of the income may be subject to tax.

Please note not all care fee advice is regulated by the Financial Conduct Authority

Contact Us:

Call 01522 788887


Chestnut Financial Services Limited

2a Sadler Court, Lincoln, LN6 3RG

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The guidance and/or advice contained within this website is subject to the UK regulatory regime. It is therefore targeted at consumers based in the UK. Chestnut Financial Services Limited. Registered in England no 9918363, 2a Sadler Court, Lincoln, LN6 3RG. Authorised and regulated by the Financial Conduct Authority.