Quick question about property and care homes

[fizzie]

I am sure this has been answered but I've been with a couple all day helping them sort things out and I need a few words of wisdom

Couple in their 70s preparing for possible care home admission in a few years time have been told by a solicitor to split all their assets now and change their home to tenants in common.

I thought in this instance because of age and marital status the house would be disregarded and savings would be halved and only his savings/pension taken into account am I right?

 

[Leswi]

If 1 of them goes in care and one still lives in house it is disregarded. If both in care the house is counted in financial assessments. Tenants in common enables each of them to leave their half of house to whoever they like rather than spouse automatically inheritance, so can potentially protect half of money for other family if they know one will be looking at needing care.

 

[Pete R]

I thought in this instance because of age and marital status the house would be disregarded and savings would be halved and only his savings/pension taken into account am I right?

Yes that is correct. If the wife dies first though normally all the value of the house goes to pay for hubbies care. If they want to protect half on death then the solicitor is correct.

However it depends on whether there is enough in a half share to continue funding the level of care needed for the duration and also bear in mind that the LA may still question the timing of any change.

 

[marionq]

I think it is good advice to ensure that neither one has all the funds eg if the husband takes charge of all savings in an account in his name that can be claimed for his care. Better for each to have their own account for savings plus if necessary a joint account for household bills.

Tenants in common means that their children have the possibility of inheriting half their parents property should one parent be taken into care and the other die. Of course a will allowing for this needs to be drawn up at the same time as the tenants in common change is made.

We did all of this plus POA for both of us prior to John's diagnosis but when I was becoming aware of his issues.

 

[fizzie]

Thank you, all of you. They are at the beginning of their journey so care is not imminent although with Parkinson's one can never tell. It does seem as though Tenants in Common is the route to go though so that at least part of the property is protected for the children in the event she dies first

Thanks everyone

 

[rajahh]

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not saying this a certainty in these peoples case but I have a friend whose husband had Parkinson's. He fell and badly broke a leg and it was deemed that my friend couldnot look after him. He qualified fir continuous health care or CHC. It took about 3 months to bfinalsedbut she got a full refund and did not have to pay for anything. He remained in care fir nearly two years before he died. Jeannette