Care Home Fees/Money running out

Discussion in 'Legal and financial issues' started by father ted, May 28, 2018.

  1. father ted

    father ted Registered User

    Aug 16, 2010
    Just wanted a bit of advice from others who have dealt with this before.

    My Mum has been in her care home since January. She is self funding and from the outset had enough money to fund for 18 months. The care home did say that they ask private funders have enough money for 2 years but they did not ask to see any proof and it was by far my favoured home so I lied and said that would not be a problem.
    I have another year before the money runs out or another 6 months before I contact the local authority about financial assessment/assistance from them but wanted to know what to do.
    A friend advised that I should fund the 6 months from my savings so I don't get into any contractual difficulties with the home( even though nothing about 2 years is mentioned in the contract). She said this would avoid any bad feeling in our subsequent negotiations. My personal feeling is that this 6 months equates to £25,000. If the LA start to fund and I pay top up the same amount will equate to top up for a whole year. Also am a bit concerned about the long term commitment of paying £2000 per month when I am not working as I am a full time carer and my husband about to retire although we do have income from a rented property ( my Mum's former home but inherited by me from my father who was sole owner as she and he were divorced for many years) but as this is managed the income is less than the required top up. I could sell it but that is our buffer when surviving solely on state pension. I know we are fortunate to have it.
    Mum has settled well and would not want to move her and can't sleep at night for the worry of it all. Just looking for some advice. Any thoughts gladly received.
  2. marionq

    marionq Registered User

    Apr 24, 2013
    I don't think your friends advice is sound. You "hoped" that the money would last two years but it is not going to. At the end of this year alert the LA to her declining funds so they get plenty of time to put an alternative funding in place before the next six months is up.

    Who knows what will happen over that period but definitely don't use your nest egg for funding.
  3. Jessbow

    Jessbow Registered User

    Bit silly to have lied, but thats done now.

    Silly advice from friend. Dont fund anything yourself.
    It may well be that the home you chose dont accept other than self funders, in which case, you may have to move her eventually.

    Is the home your mother used to live in considered hers? If so, that may well be taken into consideration. If it was deemed yours, had she paid rent? If the house was left to you on your fathers death, but with a lifetime interest for your mum, it might still be in the pot as 'hers'

    You prob need to take advice
  4. lemonjuice

    lemonjuice Registered User

    Jun 15, 2016

    definitely would choose this option. Then provides a buffer whilst things are sorted out before her money runs out.

    Take note of this. can create all sorts of problems as it creates a precedent of 'willingness to do it ad infinitum and without a property to recoup expenses from being sold, you would never see that money again. And with your husband and lack of work sounds as if finances are tight anyway.
  5. Sirena

    Sirena Registered User

    Feb 27, 2018
    In your position I'd approach the CH after she's been there a year and say her funds will be running out sooner than anticipated. Once you hear what they have to say you can then decide what to do.

    Personally I won't be putting any of my own money towards my mother's care when her funds run out for the very reasons given in your post - we're both retired and all our money is spoken for.
  6. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    If the money runs out after 18 months and the LA start funding with (from the sound of it) you paying a £2,000 per month top up they why should the home really care? They're getting their money, does it really matter to them where it's coming from?
    Some homes do stipulate a period of time for self funding, after which they will let you stay there and accept the lower LA rate, there you can see why it matters but in this case they're asking for a top up so why would it make any difference.
    You'd be ill advised to start using your own money to pay as it's an open ended commitment and care home fees go up by a lot more than inflation.
  7. Philbo

    Philbo Registered User

    Feb 28, 2017
    Although my wife is hopefully not yet near the stage of requiring residential care, last year in a bit of a panic, I started looking into suitable care homes in our area.

    Several of the better ones I visited said they did not accept LA-funded residents. So my wife's funds would possibly only last about 6 months. (we have joint ownership of our house but I presume that would be disregarded all the time I am able to live in it).

    Therefore I have a potential dilemma because if and when the time comes, our choices could be restricted, as I would hate to have to place her in one home, only to have to move her again when her funds run out!

    Not an immediate problem but it does worry me.

  8. Elle3

    Elle3 Registered User

    Jun 30, 2016
    Hi Father Ted
    If they asked for no proof and you just gave a verbal response and it’s not written in the contract, then I personally think the best thing to do would be to speak to the care home, within the next couple of months explaining your situation. There are many reasons why funds may not last as long as you first thought, they don’t know this or the circumstances, so I think now is the time to be honest and speak to them about your concerns, you could also say the top up fee once the self funding runs out could be an issue, £2,000 per month out of a pension is an awful lot of money.

    I understand you may not want to move your mum as she has settled so well, but sometimes you have to think of the long term and if this means you may have to consider moving your mum to a new care home, at least it will give you plenty of time to do this rather than in a rush when the funds run out.

    I agree with the others, your friends advice to fund the home from your own savings should not even be considered.

    All the best.
    Elle x
  9. surfergirl409

    surfergirl409 Registered User

    Jun 4, 2016
  10. surfergirl409

    surfergirl409 Registered User

    Jun 4, 2016
    My mum has been in a private care home for just over a year, her home was sold to fund the care and her state pension has also been put towards costs, mum has dementia. We are now about to pay 3rd party top up fees of £390 per week. I do not want to move mum, she is 90 years old and very happy, content and has settled so well into her home. She feels safe, secure and moving her will have a catastrophic affect on her emotionally. I’m particularly sensitive that this generation, which I consider to be the greatest generation that went through a world war are now in this position, local authorities and government are completely failing our elderly population.
  11. lemonjuice

    lemonjuice Registered User

    Jun 15, 2016
    Are you paying the 'top-up fees' yourself because your mother's money has run out?
  12. surfergirl409

    surfergirl409 Registered User

    Jun 4, 2016
    Yes! She has now had a financial assessment by the council. They will be paying £409.13p per week. Mums contribution will now be paid via me from her readjusted state pension will be £146.83 and my contribution will be £389.04. It will leave mum with £30 left from her state pension each week. Fthats just about covers the hairdressers bill and a box of chocolates..big whoop! I think the local authority forget that she may need other items such as new shoes, underwear, clothing, makeup, personal toiletries etc
  13. lemonjuice

    lemonjuice Registered User

    Jun 15, 2016
    £1500 a month is an awfully big top up and often fees rise by much more than inflation. Are you sure you can afford this?
    And have you got it in writing that your Mum's contribution will not be taken by SS as a contribution towards their part? It usually is.
    I'm just a bit worried that you are signing up for something which you may not be able to maintain long-term.
  14. surfergirl409

    surfergirl409 Registered User

    Jun 4, 2016
    The home has just increased it fee from £900 per week to £940. Yes it’s a large sum to find and at the moment we are ok, not saying it’s easy though! Mums contribution of £146.83 is plus £30 will be paid each week into her bank as her state pension had always been and I will then pay this to the council who then pay the home this amount plus their contribution. I will pay my contribution separately to the home each week.
  15. surfergirl409

    surfergirl409 Registered User

    Jun 4, 2016
    Mum only ever had a basic state pension, no savings, hence selling her home to pay towards her care. She did have a lifetime equity mortgage on her property and once that was paid back there wasn’t really a huge amount left! (WARNING! All those adverts for equity release look wonderful BUT long term perhaps not a good idea!) She was also paid attendance allowance which is now not paid to her as the council are contributing to her care costs.

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