Deferred Payment Agreement with relative becoming 60

[MarkE_71]

My Mother may need to go into care home in the near future. Two of her sons live in her house but are not yet 60. Does anyone know the following?

1) Once my brother reaches 60 will the remaining value of the house no longer be means tested, be it part of a deferred payment agreement, equity release scheme?

2|) If a deferred payment agreement is in place could it be paid off once my brother turns 60 so the remaining value of the house is retained. We asked for balance on his 60th birthday, pay it off as such cancelling it and then say to LA you can’t mean test value of house as someone is a mandatory disregard?

Thanks

 

[Shedrech]

hi @MarkE_71
I really think you need to check this with the LA

I do believe that agreements are for the time of the move into care so very much doubt that part 2 would be possible

 

[Bod]

The best I can find is this link.

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs38_property_and_paying_for_residential_care_fcs.pdf

Much depends on the actual age and situation of the two sons.

Bod

 

[MarkE_71]

Thanks folks. I've read similar to your link Bod. It doesn't really nail it down but thanks for sharing.

 

[nitram]

Agree with @Shedrech.
The situation is complicated by your statement on another thread that you don't know and can't find out her assets, any chance they are above the self funding limit?

 

[MarkE_71]

Hi nitram. Wow, most people don't even read 1 thread not to mention link in with another. I've been through the bureau so have a rough idea - around £40000. I'm trying to work out a worse case scenario as far as money goes to allow us to plan.

 

[nitram]

Until that figure is reduced to the upper limit of £23250 (in England) the problem of house disregard does not arise.
If the margin is slim you could consider obscure ways of reducing the cash flow.

 

[Shedrech]

just be aware that as a Deputy you will have to provide full and accurate yearly accounts so I suggest you keep things simple and straight forward

 

[MaNaAk]

The best I can find is this link.

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs38_property_and_paying_for_residential_care_fcs.pdf

Much depends on the actual age and situation of the two sons.

Bod

Also how much have they paid towards the upkeep of the house and do they have receipts for this?

MaNaAk

 

[MarkE_71]

nitram: I thought about that, basically negate needing to sign up to a deferred payment agreement by, say, getting a loan. However, I'm looking at worst case scenarios for sake of brothers 3.5 years from 60. I also don't want to waste assets that won't be means tested later on like if I get a loan in my name.

Shedrech: Yep, but I think if I have an audit trail and are acting in the interest of my Mum with regards to Mental Health Act I should be ok.

MaNaRk: They paid board via cheques, therefore there is some audit trail via bank statements . However, it is more to cover bills rather than maintain house which is what you are alluding to?

 

[nitram]

Care home fees will knock 40 down to 23 in well under 3½ years.

 

[MarkE_71]

nitram: Yep. I live in Northampton and I'm thinking at least 40000 a year - minus pension and attendance allowance.

 

[TNJJ]

nitram: Yep. I live in Northampton and I'm thinking at least 40000 a year - minus pension and attendance allowance.

Here in Cornwall it is a £1000 a week.