Can any one give me some advice for a friend? She has lived in a house all her life with her parents (and still does), her father passed anyway some years ago and in recent years her mum has developed dementia. Within the last year the deeds were transferred from her mothers name to hers ( her mum stills lives there, with her). Due to a recent fall and her dementia increasingly getting worse her mum has been taken in to hospital. Now my friend feels it is in everyone's interest for her mum to go into a carehome but where does she stand with the house and care home fees?
Social works at the hospital are putting her index pressure and advising the house can be taken to pay fees?
Any advice would be much appreciated.
It will really depend of what other capital the Mother has. If it is enough to pay for her care for as long as needed then all is OK however if not then unfortunately with transferring the house only a year ago the Local Authority may decide that this has been done for the purposes of avoiding paying for care home fees. If it was done at a time that there was no prospect of her Mother needing care there may be a chance of challenging it.
How old is your friend? If she is over 60 the house will be disregarded anyway. If under 60 she can apply for a discretional discharge as it her home, she has cared for her parents and will be made homeless. This is a very difficult process and I have been battling my LA for well over a year and they refuse to budge.
If the decision is that the house belongs to the Mother the house does not have to be sold immediately. The LA should offer a deferred payment agreement where they pay the care costs and recoup the money when the Mother dies. The debt can be paid from any source so again may not mean the house has to be sold.
The New Care Act Statutory Guidance covers all the rules....
https://www.gov.uk/government/publications/care-act-2014-statutory-guidance-for-implementation
The transfer of the deeds will come under Deprivation of Assets in Annexe E
The disregard of the property is in Annexe B Starting at Sec.34
Deferred payments are at the beginning under Sec 9.
Age UK have an abundance of Fact Sheets that explain it all slightly better.
https://www.gov.uk/government/publications/care-act-2014-statutory-guidance-for-implementation