Do we need a Financial Assessement?

[Greygal]

The sad day has come where we’ve realised that FIL’s needs will be better met in a care home.
As a family we’ve settled upon one that we’re all happy with.
As he has over £23,250 in savings he will be self funding.
We’ve estimated that his savings will last approx 1 year and so will need to apply for Local Authority funding once his savings have been used up.
Would it be best to get a financial Assessement done now so that the Local Authority are aware of the level of his savings or do we leave it until his savings drop below the threshold?
As most of his savings are held jointly with his wife (who will still be in the family home) would it be best to put the Local Authority in the picture now so that when the time comes they can see how the money has been split?
We’ll keep careful records but don’t want to cause unnecessary problems when they have to step in to pay.
Thank you!

 

[northumbrian_k]

My wife had assets above the threshold but I asked for a financial assessment in any case. It was a 'light touch' one, just a phone call from the council to confirm that she was deemed to be self-funding. Later, with her assets much diminished, I submitted a capital reduction form showing that she was approaching the £23,250 mark. A full financial assessment was then carried out (including submission of bank statements etc.) and her contribution to care costs calculated.

 

[Greygal]

My wife had assets above the threshold but I asked for a financial assessment in any case. It was a 'light touch' one, just a phone call from the council to confirm that she was deemed to be self-funding. Later, with her assets much diminished, I submitted a capital reduction form showing that she was approaching the £23,250 mark. A full financial assessment was then carried out (including submission of bank statements etc.) and her contribution to care costs calculated.

Thank you - that’s very helpful.
I think it would be a good idea to do as you did so that the LA is clear on his savings before they need to do a full assessment

 

[thistlejak]

One thing I would do to make things easier going forwards is to split the joint account into individual ones - it means your mum's share doesn't get used - once the LA are involved with annual assessments they deem joint accounts as 50/50 each year eg. £100,000 in joint account - £50,000 each - use £20,000 for care fees - balance £80,000 - deem to be £40,000 each so £10,000 of mum's money has been used.

 

[Greygal]

One thing I would do to make things easier going forwards is to split the joint account into individual ones - it means your mum's share doesn't get used - once the LA are involved with annual assessments they deem joint accounts as 50/50 each year eg. £100,000 in joint account - £50,000 each - use £20,000 for care fees - balance £80,000 - deem to be £40,000 each so £10,000 of mum's money has been used.

I did think of that but as Dad’s state pension is much larger than Mum’s thought maybe it was better to leave it as a joint one.
The payments would initially come from his Premium bonds, then a fixed rate account (held jointly) and finally their joint t current account.
Was hoping that this would give us time to have as much as possible going into the current account so that by the time it needed to be used they wouldn’t be able to touch it if there was less than £46,500 in it (allowing for £23,250 each)
It’s all a bit of a mine field, isn’t it?!

 

[thistlejak]

@Greygal - another thing I found out by accident when I notified DWP that FIL had gone into a care home was that his state pension 'went with him' and MIL was now entitled to pension credit due to her low state pension even though there were savings to share.

There is also the 'donate half of private pensions to spouse' to consider - when the LA do the assessment they assume half of any private pension is donated to the spouse - we didn't actually do it for MIL & FIL as his private pension was very small.