Page 4 - CPB March 21st

The Care Property Bond
an overview.
The Care Property Bond from Shaw Insurance is aimed at elderly homeowners who need to raise additional finance to contribute to the cost of care in a residential care home. It is an alternative to the sale of the elderly person’s home in the open market to raise cash. When a family is under time pressure to make decisions, the Care Property Bond is a convenient way to raise money to finance residential care in any registered care home. The main purpose of the Care Property Bond is to use the customer’s home to raise much-needed finance for care home fees and to allow the customer to pass on the net equity in the property after some of the equity has been used to pay towards care home fees.
The Care Property Bond also preserves the possibility of passing the property back to the customer or to the next generation. It is an objective
of many people to pass on a property to the next generation.
The Care Property Bond pays a monthly sum tax-free to a registered care home for the entire life of the customer, which is needed to top up the customer’s income from pensions and investments. Please note that tax legislation is subject to change. A unique feature is that the elderly homeowner does not pay in cash up front for the Care Property Bond or for the charges of Shaw Insurance.
The Care Property Bond involves a transfer of the customer’s property to Shaw Insurance so that it can mortgage the property. This is how Shaw Insurance raises the finance towards paying for the costs of care and towards its costs and charges. Shaw Insurance will rent out the property to meet the interest on its loan and other outgoings