assets

[Munro]

My ex partner has contracted dementia in the last two years. Although we have been estranged for many years I am still very close to my daughters, who have both left the family home. I signed my investment in the house (no mortgage) over to my ex many years ago for the security of my daughters who have both left home. I have no personal interest in my ex's assets but worry that my kids will lose out on their inheritance if my ex goes into care. I've heard stories about substantial bank accounts and house values being eroded through claims for care. Does anyone have experience in this situation, apparently my ex refuses to discuss this with the kids and her symptoms are worsening by the week. Is anyone in a similar situation who might offer advice?

Please do not misunderstand me, I hope and pray my ex will receive the best of treatment available. But kids are young and my worry is for their future security.

 

[jaymor]

Hello Munro and welcome to TP.

The house along with any other assets will be assessed as your wife's assets and therefor if there is not a spouse living with her then will be counted as being available for her care should she need it. Not everyone needs residential care so it may not come to her having to sell her house.

Many people stay in their own homes with some help being brought in when necessary.

 

[Kevinl]

Hi Munro, welcome to TP
I think you're right to be concerned, if your ex does have to go into long term care then if he has assets over £23k then he will have to pay, there's a bit more to it than that but that's the big picture. If the house is in his name it is an asset and as so may need to be sold to pay for long term care.
Although you don't specifically say so I'm guessing he has been formally diagnosed so it's too late to think about moving anything into anyone else's name as that could be classed as deliberate deprivation of assets and could be reversed.
There's a link to a fact sheet below which gives a reasonable overview of the rules.
Regards
K
http://www.firststopcareadvice.org.uk/downloads/kbase/3096.pdf

 

[jenniferpa]

Hi and welcome to Talking Point.

If your ex-spouse owns the home wholly, and there is nothing like a trust in place, then if she eventually needs care then the value of the home will be taken into consideration. The rules have changed somewhat about this now. While she will not be forced to sell the home, the LA will almost certainly expect a deferred payment agreement to be in place in the event that she is self-funding. There will almost certainly be interest charged on this loan (in the past, the loan was interest fee).

From April 2016 there will be a cap on care costs. This cap is £72000, but excludes so called "hotel costs". This is all a bit up in the air at the moment I'm afraid.

Has your ex-spouse appointed anyone to be her financial or health attorney under an Lasting Power of Attorney? More than anything else I would encourage you (or your children) to get her to do this. There is not much that can be done at this time to legally protect the property in question, but an LPA will make managing the situation much easier.

 

[nicoise]

But kids are young and my worry is for their future security.

Dear Munro,

I am sorry to hear of your ex-partner's problems. You write that your daughters have left home, so I guess that they are old enough to support themselves fairly independently now.

It is possible for care to be given within the home - not everyone needs residential care. I'm afraid however that any potential inheritance they might anticipate only comes into existence after a person has died - until then the assets of the person belong to them, and as such will be taken into consideration should a financial assessment be made with regard to care provision.

Your daughters might find this forum useful in how to support their mum; it has lots of useful information with regard to understanding dementia, caring and financial matters - I am also guessing that it would be up to them as you say you are long estranged from your ex-partner. As Jenniferpa says, arranging an LPA to manage her financial and health affairs would be the best way for those closely involved with her to help manage her situation in her best interests.