Hi, I was wondering if anyone has experience of these? My father is self-funding in a privately run home in Scotland. He has lived there for 2 years now. His cash funds are running low, but he still has the house that he lived in previously. He owns 50% of the house, the other 50% being jointly owned by me and my sister (left to us by our mum when she died).
When his funds reach about £35,000, the local authority will step in and take over payments to the care home (obviously at the significantly lower social care rate), and from what I understand, Dad will still need to make a contribution to those fee payments from his pension and savings until his savings drop to £21,500 when the local authority will pay in full. I spoke to the finance department earlier today, and asked if we would need to think about selling the house now and was told no, that as far as they were concerned, we could keep the house, and they would place a charging order on it for any monies Dad owed towards fees. At the point in the future when Dad dies, we would be billed for the debt that had accrued. The local authority do not mind where the money comes from to pay this, as long as it is paid at that point. This would allow us to keep the house while he's alive so we can stay in it when visiting, and then to dispose of or use as we saw fit further down the line.
What the advisor did not know, is whether the care home would also try to place some sort of charging order/deferred payment on Dad's share of the house? She said they may argue that had we sold it, he would have had more funds in his bank account for them to take as fees at the astronomically high self-funded rate, rather than only receiving the state level of funding for his care once he had exhausted all his cash assets.
I was wondering if anyone has any experience of something similar?
When his funds reach about £35,000, the local authority will step in and take over payments to the care home (obviously at the significantly lower social care rate), and from what I understand, Dad will still need to make a contribution to those fee payments from his pension and savings until his savings drop to £21,500 when the local authority will pay in full. I spoke to the finance department earlier today, and asked if we would need to think about selling the house now and was told no, that as far as they were concerned, we could keep the house, and they would place a charging order on it for any monies Dad owed towards fees. At the point in the future when Dad dies, we would be billed for the debt that had accrued. The local authority do not mind where the money comes from to pay this, as long as it is paid at that point. This would allow us to keep the house while he's alive so we can stay in it when visiting, and then to dispose of or use as we saw fit further down the line.
What the advisor did not know, is whether the care home would also try to place some sort of charging order/deferred payment on Dad's share of the house? She said they may argue that had we sold it, he would have had more funds in his bank account for them to take as fees at the astronomically high self-funded rate, rather than only receiving the state level of funding for his care once he had exhausted all his cash assets.
I was wondering if anyone has any experience of something similar?
