Care Fees Flashcards
1
Q
Explain why Jane should consider funding part of her fathers care with an immediate needs annuity (8)
A
- income received will be tax free
- paid directly to the care home
- income guarantees for her fathers lifetime
- even if he outlives his life expectancy
- will help to cap the cost of his care
- rates will be higher if he is in poor health
- indexation available to help keep pace with rises in care fees
- simple to understand
- no ongoing advice fees payable
- capital protection can be included
