Trusts, Charities & Deputyships

CASE STUDY

 

Background

Mary was brain damaged as a consequence of a misdiagnosed brain haemorrhage. The delay in treatment resulted in permanent damage and symptoms, such as short term memory deficit, sight problems in her left eye and her balance difficulties. Mary is still able to communicate well, however finds it difficult to concentrate and retain information. Her life expectancy is normal.

The settlement amount was less than ideal, resulting in the need to balance several conflicting and non-sustainable needs and desires. Mary wanted to buy a house, fully funded from the Deputyship resources, rather than continue to rent and have the local authority pay the rent, (which would have left more capital to fund her care). Mary also wanted to cover the costs of the ongoing necessary level of care and support, but was reluctant to taking any risk.

 

Our Approach

We spent a year working with the Deputy, creating cash flow modelled discussion documents, showing the likely outcome of different scenarios. These aided discussions with Mary and visually helped her and her family understand the balances and compromises needed to ensure Mary did not run out of capital and lose her home and support in due course. Manse Capital worked closely with the Deputy to ensure Mary and her family understood that the Deputy and Manse Capital had her best interests at the core of their actions, whilst undertaking difficult decisions to support and protect Mary both now and for the long-term. 

 

The Outcome

A sustainable strategy was established and agreed with the Deputy and one that Mary and her family bought into. A sum which was more than ideal was spent on a bungalow in her home village, near one of her daughters and friends, in which adaptations were made to enable and to greater Mary’s independence. Her daughter is now providing more of the supervision and care to substantially reduce costs and living locally to friends and family has enabled greater, low risk social outings for Mary.

We established a modest degree of risk was necessary to secure a long-term net of costs return, of about 4% p/year, to avoid the complete depletion of Mary’s capital whilst avoiding the significant fluctuations a higher risk portfolio. This investment strategy has now been implemented since the end of 2014 and is one both Mary and her family have fully bought into, giving the Deputy confidence in the fully informed and robust strategy and decision making process that is now in place.