Care Home finance, inheritance

CarerD

Registered User
Jul 22, 2013
5
0
A relative has recently been admitted into a care home, (in Scotland), privately funded until assetts and savings are depleted to a threshold, thereafter local authority funded. However, does anybody know what would,or could happen, if in the future my relative receives an unexpected inheritance through a will? Does that inheritance then become part of the stripable assetts used to fund the home or can it be protected in any way?
 

jaymor

Registered User
Jul 14, 2006
15,604
0
South Staffordshire
Hello and welcome.

Not sure I have the answer but looking at it logically if it was a large inheritance then it would be money they have above the threshold and so needed to fund their own care. The LA become involved when you are below the levels stipulated so I am sure they would withdraw once funds were above the level. Finances are closely watched so there is no way the new money would not be missed.

I am sure if someone was on benefits and they won the lottery then the benefits would stop because they had money to provide for themselves.

As for safeguarding it against it being used for care then I think that will be a definite no.

If your relative did get an inheritance then it would be a bonus because self funding gives you more choice in the care that is available.

Jay x
 
Last edited:

Wirralson

Account Closed
May 30, 2012
658
0
Short answer is you would need to consult a lawyer. As you are in Scotland things may be different. I don't think your relative or their attoreny could easily disclain the bequest and I am unclear, for example, whether the English concept of a Dead of Variation would be possible either. As receiving money would probably almost always be regarded as being in the "best interests" of your relative, I don't think their Deputy/Attorney could disclaim the estate or agree a deed of variation - in effect that would be deprivation of assets or something very like it.

I would guess that they would inherit, go over the threshold until the assets were depleted again. But it's a layman's gues and I'd suggest you need proper professionally-qualified advice.

Wirralson
 

Contrary Mary

Registered User
Jun 11, 2010
1,895
0
69
Greater London
From my experience, I think you would be "stuck" with the inheritance. Mum received an unexpected legacy once. It was also bigger than expected due to the will being badly worded and my deceased aunt's family lost their share because of this. My living aunt did a Deed of Variation on her share, but I couldn't do anything for Mum as she had lost capacity and I was managing her affairs with a POA. I would have had to go to the Court of Protection to have done anything.
 

CarerD

Registered User
Jul 22, 2013
5
0
Hello and welcome.

Not sure I have the answer but looking at it logically if it was a large inheritance then it would be money they have above the threshold and so needed to fund their own care. The LA become involved when you are below the levels stipulated so I am sure they would withdraw once funds were above the level. Finances are closely watched so there is no way the new money would not be missed.

I am sure if someone was on benefits and they won the lottery then the benefits would stop because they had money to provide for themselves.

As for safeguarding it against it being used for care then I think that will be a definite no.

If your relative did get an inheritance then it would be a bonus because self funding gives you more choice in the care that is available.

Jay x

Many thanks for your helpful thoughts.
 

CarerD

Registered User
Jul 22, 2013
5
0
Short answer is you would need to consult a lawyer. As you are in Scotland things may be different. I don't think your relative or their attoreny could easily disclain the bequest and I am unclear, for example, whether the English concept of a Dead of Variation would be possible either. As receiving money would probably almost always be regarded as being in the "best interests" of your relative, I don't think their Deputy/Attorney could disclaim the estate or agree a deed of variation - in effect that would be deprivation of assets or something very like it.

I would guess that they would inherit, go over the threshold until the assets were depleted again. But it's a layman's gues and I'd suggest you need proper professionally-qualified advice.

Wirralson

Many thanks for your advice on deed of variation.
 

CarerD

Registered User
Jul 22, 2013
5
0
From my experience, I think you would be "stuck" with the inheritance. Mum received an unexpected legacy once. It was also bigger than expected due to the will being badly worded and my deceased aunt's family lost their share because of this. My living aunt did a Deed of Variation on her share, but I couldn't do anything for Mum as she had lost capacity and I was managing her affairs with a POA. I would have had to go to the Court of Protection to have done anything.

Many thanks for sharing your experience and flagging up a deed of variation.
 

Wirralson

Account Closed
May 30, 2012
658
0
Many thanks for your advice on deed of variation.

I am mildly mystified by your reference to an "unexpected" legacy. It sounds as though you anticipate a legacy from someone who is ill and possibly is unwilling to change their will, or lacks the capacity to do so. If the latter, then in England and Wales at least there is a concept known as a "statutory will" which allows the Courts to make a fresh will on their behalf subject to a strict procedure, and only for defined reasons (of whcih tax planning can be one). I was wondering if tackling the problem at the will-making end may be preferable to waiting until confirmation (= probate in Scotland for English readers).

Wirralson
 

CarerD

Registered User
Jul 22, 2013
5
0
I am mildly mystified by your reference to an "unexpected" legacy. It sounds as though you anticipate a legacy from someone who is ill and possibly is unwilling to change their will, or lacks the capacity to do so. If the latter, then in England and Wales at least there is a concept known as a "statutory will" which allows the Courts to make a fresh will on their behalf subject to a strict procedure, and only for defined reasons (of whcih tax planning can be one). I was wondering if tackling the problem at the will-making end may be preferable to waiting until confirmation (= probate in Scotland for English readers).

Wirralson

Thanks for your further thoughts - you're right, the will-making end would be the ideal route.