It is upsetting when a previously robust and healthy family member becomes vulnerable as a result of serious injury, critical illness or the debilitating effects of old age. As well as facing the emotional, physical and legal aspects, this change in circumstance requires long-term funding. But you don’t have to go through this upheaval alone. The experts in our Court of Protection and Personal Injury team have the experience to strategically invest any compensation received so that it addresses your loved one’s needs in the most effective way.

We can advise you on how to sensibly structure and invest a compensation settlement to ensure it meets all the specific care needs, providing security for your loved ones now and in the future.

With a dedicated financial plan in place, you’ll be freed up to devote your attention to adapting to a new way of life as a carer without fretting about money.

When it comes to coping with the strain of illness or infirmity, such as dementia, you’ll want to provide the best care available for your loved ones for as long as it is required. Having an appropriate investment strategy in place can give you peace of mind that there is sufficient funding to do that, allowing you to focus on making life for your loved ones as stress-free, safe and fulfilling as possible.

The cost of caring for people with dementia in the UK is £34.7 billion a year.

* Alzheimer’s Society, 2019

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Caring for loved ones? Here’s what you need to know.

What is the Court of Protection and how does it work?

The Court of Protection was established in the UK in 2005 to protect vulnerable individuals who do not have the mental capacity to make decisions in their own best interests. It exists to ensure that a responsible individual such as a family member, solicitor or financial adviser will look after their interests and manage their affairs in terms of their finances, accommodation and health and welfare.


We have a specialist team working closely with the Court of Protection. If you or your loved ones receive damages from a claim, we can help you invest it to provide for a lifetime of care.


Your loved one may already have a Lasting Power of Attorney in place which allows you to act on their behalf in these matters. But in cases where, say, a previously young and fit family member suffers a serious injury and is in no position to appoint an attorney, then the Court of Protection may appoint a deputy to act for them. This responsibility is delegated to a guardian in Scotland and to a controller in Northern Ireland.

How much money will I need for long-term care?

That will depend largely on which care option is most appropriate for your circumstances. When it comes to serious injuries, there may be a need for ongoing round-the-clock specialist care, installation of medical and therapeutic equipment and modifications to the home.


Care at home or independent living schemes cost less than residential and nursing care. Research from Which? indicates that the average cost of a residential home is £2,400 a month while a place in a nursing home will typically cost around £3,200 a month.


Given that more than a quarter of care home residents live there for more than three years, according to Age UK, you will need to budget accordingly. Others are planning to fund any requirements from their pension income or from savings and investments.

What is the best financial plan for injury and illness?

No two individuals’ needs are the same but when it comes to funding long-term care needs, an investment portfolio designed for steady income would be the main consideration.


There is no standard compensation package per injury as the award decision will be based on a number of factors including severity and the impact on the victim’s life. However, we can help you to invest any lump sums, with the aim of generating an income in the years to come.

Can I prepare in advance for possible care needs in the future?

According to the Association of British Insurers, one million people in the UK are forced to give up work every year due to serious injury or sickness. For these reasons, the insurance industry has developed two types of products that aim to provide protection in the event of being incapacitated: income protection insurance and critical illness cover.


As the name suggests, income protection insurance is designed to provide an income if you become seriously ill or injured and unable to work. It will pay out until you either recover, retire, or die – whichever comes first. These policies cover most illnesses and disabilities.


Critical illness cover will pay you a one-off lump sum if you are diagnosed with one of the specific medical conditions, or suffer one of the injuries outlined in the policy. More recently, some life insurance companies have launched policy add-ons that provide cover for possible future care costs.


These policies meet particular needs but you may decide you don’t need them if you have a well-structured and properly funded investment plan with rainy day funds built in.

Can I protect my assets from being used to pay for care?

This is a very real and emotive subject as many people have never given any thought to the prospect of long-term care as it makes them feel uncomfortable. A recent survey found that a third of people feel they would have to sell their property to cover care costs. Altogether, UK citizens spent nearly £11 billion of their own money last year on funding private care.


The best solution is to talk to your Financial Planner about putting a plan in place before care becomes an issue.

Elderly woman paints on a canvas in a light-filled room
Judy, Liverpool (name changed to protect anonymity)

I feel really fortunate that Chris and Marion are always happy to pop round to see me if I need any help.

Your next steps

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Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN.