The key issue is that of inflation and the “real value” of money on deposit. If inflation averages just 2½% per annum, the value of the pound in your pocket reduces by one-quarter every 12-years. Even with interest accumulating, with rates as low as those currently available, particularly after tax, those balances are not keeping pace with inflation.
Whilst Granny’s home doesn’t have to be sold during her lifetime, it may well still need to be sold after her death to repay the debt.
You may consider that Granny can no longer safely live in her own home and that she needs to go into a Care Home, but if the Local Authority doesn’t share that view, there will be no contribution to costs, regardless of whether Granny would qualify on financial grounds alone.
Unlike investing money for yourself, where caveat emptor – “let the buyer beware” – applies, investing as a Trustee is governed by a whole series of rules and regulations, which you ignore at your peril.
An Individual Savings Account (ISA) is a “wrapper” for cash and/or investments which confers some valuable tax benefits to UK resident savers and investors.