Paying for Nursing Home Fees

[davidwatts]

My Aunt has recently entered a nursing home with annual fees of €55,000.

I am her sole relation and have been asked to look after her accounts. Her house was recently sold and at present there is €500,000 sitting in an AIB deposit account attracting minimal interest.

Does anyone have any recommendations on the best type of investment for the €500,000 to try and generate €55,000 per annum.

My Aunt is 82 so I am not hugely worried about eating in to the capital sum but would hope to ensure it could pay for her fees as long as she is alive.

 

[Squonk]

Your aunt's pension should amount to ~€10,000 per aunnum so the real amount you pay to the nursing home is €45,000. You can also apply for subvention from the HSE. However, given that there is €1/2 million sitting in the bank I wouldn't expect much. You'd have been better off not selling the house and allowing the HSE to consider the house as an income provider of 5% of market value = €25k per annum. The HSE would then have added some money to help pay the difference between €25k and €45k. (Furthermore, next year, the "fair deal" will hopefully come into play where the HSE pays all the cost of the nursing home in return for up to 15% of the value of the home...still a better deal for you). See links below :
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[davidwatts]

Thanks Squonk....that is extremely helpful, much appreciated.