Occupational Pension 50% Disregard

[sixy74]

Hi All
We have been told by our local council during a care home financial assessment that Mum will be allowed to keep 50% of Dads small occupational pension.
Mum recently applied for pension credit and did not know she would be entitled to this amount at that time, so this morning she has called the pension credit hotline and informed them of this.
Dads occupational pension will still be paid into Mum and Dads joint account, she will then transfer 50% to the council to pay towards Dads care home fees and the remaining 50% will be available for her to use.
Obviously her pension credit award will now be lowered.
Have we gone about it the right away, as I don't want mum ending up in a position were she owes money to the DWP.
Thanks guys

 

[marionq]

Hi All
We have been told by our local council during a care home financial assessment that Mum will be allowed to keep 50% of Dads small occupational pension.
Mum recently applied for pension credit and did not know she would be entitled to this amount at that time, so this morning she has called the pension credit hotline and informed them of this.
Dads occupational pension will still be paid into Mum and Dads joint account, she will then transfer 50% to the council to pay towards Dads care home fees and the remaining 50% will be available for her to use.
Obviously her pension credit award will now be lowered.
Have we gone about it the right away, as I don't want mum ending up in a position were she owes money to the DWP.
Thanks guys

That sounds very sensible to me. All bases covered.

 

[sixy74]

That sounds very sensible to me. All bases covered.

Hi
Thanks for your reply.
What confused me is the fact that the 50% of dads pension that mum is allowed to use is in Dads name, so for Pension Credit purposes would that be classed as Dads income or Mums , as I was told that Mum and Dad are no longer classed as a couple. I just wanted to make sure I had covered her in case it’s classed as her income

 

[marionq]

Hi
Thanks for your reply.
What confused me is the fact that the 50% of dads pension that mum is allowed to use is in Dads name, so for Pension Credit purposes would that be classed as Dads income or Mums , as I was told that Mum and Dad are no longer classed as a couple. I just wanted to make sure I had covered her in case it’s classed as her income

The time has probably come for your mother to open an account in her own name as well as the joint account. Her own account would contain that 50% plus any pension she has of her own and any pension credit. She could pay your Dads contribution out of the joint account as well as any purchases she has to make for him from his £23.50 allowance for personal items. If her account increased due to savings or windfalls then the SS has no right to look at that. Only your Dads share of the joint account would be relevant.

 

[sixy74]

Great advice thank you

 

[sixy74]

Can I just pick your brains again please regarding your reply.
At the moment Dad has his own bank account and Mum and Dad have a joint account.
Dads state pension is paid into his own account and Dads private pension is paid into the joint account.
Currently we transfer half of dads private pension into his own bank and use this and his state pension to pay his care home fees. Mums half remains in the joint account as well as her small state pension and pension credit. This is then used to pay all house hold bills and what’s left is mums.
Is this the right way to go about it or should mum have a another account for her state pension and pension credit to be paid into and then transferrd to the joint account for paying bills.
I’m looking at all options and the easiest way to do it

 

[marionq]

The important thing is to keep the two sets of finances separate. I like women to have independent accounts and be able to manage them but it sounds as if she is doing that albeit through a joint account. His fees etc are being managed through his own account and I take it you have POA for that.

My quibble would be that if your mother managed to build up any savings in the joint account then half of that would belong to your Dad as it is “joint”. If that is unlikely then you could leave things as they are.

 

[sixy74]

The important thing is to keep the two sets of finances separate. I like women to have independent accounts and be able to manage them but it sounds as if she is doing that albeit through a joint account. His fees etc are being managed through his own account and I take it you have POA for that.

My quibble would be that if your mother managed to build up any savings in the joint account then half of that would belong to your Dad as it is “joint”. If that is unlikely then you could leave things as they are.

Thank you For your advice