Financing care home

[oliviajuliette]

Hello everyone, some advice needed please. My OH has alzheimers and I know sometime in the future he will need a place in a care home. We live in our own home and the house is in both of our names and we have a joint bank account. Will the cost of the care home be taken from the money from our home when it is sold eg when I no longer live in the house. Thanks in advance

 

[canary]

All the while that you are living in the home it will be disregarded from the financial point of view. If you decide to sell once he is in a care home the Local Authority may well decide that his half of the proceeds of the house sale will have to be used to finance the care home; and, of course, if you pass away or go and live with a relative then the house will no longer be disregarded.

 

[Beate]

So, basically, don't sell it! And half of any joint account will be classed his.

 

[oliviajuliette]

All the while that you are living in the home it will be disregarded from the financial point of view. If you decide to sell once he is in a care home the Local Authority may well decide that his half of the proceeds of the house sale will have to be used to finance the care home; and, of course, if you pass away or go and live with a relative then the house will no longer be disregarded.

Thank you Canary much appreciated

 

[Kevinl]

If you decide to sell once he is in a care home the Local Authority may well decide that his half of the proceeds of the house sale will have to be used to finance the care home.

The guidance notes for the 2014 Care Act gives the following example in Annex E note 10, link below:

"Example of where deprivation has not occurred
Max has moved into a care home and has a 50% interest in a property that continues to be occupied by his civil partner, David. The value of the property is disregarded whilst David lives there, but he decides to move to a smaller property that he can better manage and so sells their shared home to fund this.
At the time the property is sold, Max’s 50% share of the proceeds could be taken into account in the financial assessment, but, in order to ensure that David is able to purchase the smaller property, Max makes part of his share of the proceeds from the sale available.
In such circumstance, it would not be reasonable to treat Max as having deprived himself of capital in order to reduce his care home charges."

So if someone's partner decides to downsize then the LA are told not to take the money into account. It does say they "could" but then it says it would "not be reasonable" to do so.
The LA is supposed to follow these guidelines and I would check with them first but the guidance notes say they should allow it.
K

https://www.gov.uk/government/publi...ce/care-and-support-statutory-guidance#AnnexB

 

[canary]

Yes that is true kevin, and I didnt say that they would insist on his half being used for the care fees, but my LA is so strapped for cash that personally I wouldnt take the risk! IMO if you know you are going to need to move at some stage its best to do it early before the need for care, though I realise that this is not always possible.