Affording care - what happens

[Spcc cat]

Dear all. I will try to keep details to a minimum as everything is so complicated right now.

Mum in a nursing home costing dad £6500. Savings are now gone. Next comes a small family commerical property which my brother is reliant on for income. Care home will eat away at this and because This commerical property takes the value of the estate over the inheritance threshhold, my brother is keen to reduce the estate (we can no longer gift it). Brother wants to take out an immediate care annuity to do this. We're looking at £300k, using equity release from estate to fund it. However, as mum is not long for this world (but we don't know, of course). I am suggesting equity release on a year by year basis to pay care, instead to reduce risk of loss. With equity release, there seems to be huge interest and compound interest, meaning we could be faced with double the repayment bill if she lasts long time.

Does anyone have expereince of children being liable for repayment of equity release debt when parent is gone? I am scared to death to be faced with financial burden as I am a single parent, struggling already. We don't know what is best, but brother is sure (being pushed by his wife who wants property out). Worth noting that while I don't want bro to miss out on his income, he does far better than all of us combined from the business and has done for years. He doesn't want to purchase the shop as says he doesn't have the fund. This situation is tearing my small and isolated family apart even more.

 

[DeeCee7]

Hello @Spcc cat I am sorry to read of your dilemma regarding paying for your Mum’s care. All I know is that your Dad’s savings shouldn’t be taken into account, and only your Mum’s savings down to £23,250 then on a sliding scale. As for the family commercial property, whose name/s is it under? This does sound complicated so taking expert legal advice may be needed.

 

[Jessbow]

Have you applied to CHC for funding if she is EOL?
Or do you just mean she's coming to the end of her life?

 

[Rayreadynow]

I don't see any mention of Lasting Power of Attorney in your post and who has it? If no one has a LPA then no decisions can be made. At the very least your Dad should have an LPA to make decisions about your mothers commercial interests. But if it is jointly owned I would seek advice from a solicitor.