Site Logo
Site Logo

My daughter has a long term illness and will not be able to live independently. How can we finance her care when the day comes that my wife and I are too old to care for her?

06 September 2021

Got a question?We'll put your question to our panel of helpful advisers

Question by Tim

I have a 5 year old daughter who unfortunately has a difficult to treat form of epilepsy and developmental delay. She is very likely to grow up with severe impairments and not live independently. How can we finance her care when the day comes that my wife and I are too old to care for her? At the moment, I'm assuming that government benefits will provide a base load of financial provision; given the long time horizon, I'm thinking of topping that up with riskier stocks and shares with long-term growth potential. Is this sensible in your view? I can wrap things up in a JISA and ensure that it's held in trust for my daughter once she's 18 so it falls outside inheritance tax.


Answered by Tamsin Caine

Hi Tim, thank you for your question. There are a number of considerations that you need to bear in mind but you may want to think about a pension or perhaps a trust fund. This is a complex area, with many considerations, including not impacting the benefits she will be entitled to when she is older and ensuring that it is affordable for you now. I would strongly recommend that you take advice from a specialist in this area.

Answered by

Tamsin Caine

Director of financial planning

I’m a single mum of two wonderful teenagers. I divorced in 2017 and grew up from the age of 12 with divorced parents. Following these experiences and realising how my financial planning experience could help, I founded Smart Divorce in 2018.