Financial assessment regarding second property

PatSmith60

New member
Oct 4, 2018
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My wife had a stroke several years ago and has since been diagnosed with vascular dementia. I care for her at home. I have both a health and welfare, and property and finance lasting power of attorney for her (I'm the sole attorney). She and I, as her carer, have been assessed by our local social services. I have declined a financial assessment as my wife has savings of around £80,000 (half of our joint account). She goes one day a week to a local day centre, which we pay for. The complication is that my wife also is a part owner of her previous marital home (worth about £550,000). Her, her daughter and her ex-husband own the property as joint tenants. There's no mortgage. Her ex has lived in the house, by himself, for the last 30 years (he's 87). My wife and I have a good relationship with her ex and we wouldn't want to anything more to upset him.

At long last, my question is, how will this house be treated by the local authority if my wife needs to go into permanent care and I request a financial assessment? Could they demand that the house be sold? Would we need to pay for care out of her savings first or could there be some sort of deferred payment agreement regarding the second house? Any advice and/or suggestions would be much appreciated.
 

SAP

Registered User
Feb 18, 2017
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I can’t comment on the house / joint tenants issue , others will be able to I am sure. However as her ex is still living there I’m guessing that it may be disregarded, however I’m not sure how this works with a second property.


With regarding to the savings though, yes your wife will be expected to pay for her care as she has savings over £23,500. Any monies she has coming in will also be included e.g. occupational pensions.

 

nitram

Registered User
Apr 6, 2011
30,855
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Bury
However as her ex is still living there I’m guessing that it may be disregarded

Not sure about that, from your first link:
If your care home is permanent, it won't be counted if it's still occupied by:
  • Your partner or former partner, unless they are estranged from you
  • your estranged or divorced partner IF they are also a lone parent
  • a relative who is aged 60 or over
  • a relative who is disabled
  • a child of yours aged under 18
I think it is possible to put a charge on her share (third?) although the deferred payments may only cover a few years
EXAMPLE:
Mary has a property worth £165,000 following valuation. 10% of this is £16,500 and the 2016/17 lower financial limit is £14,250. This means that the Equity Limit is £134,250 and Mary still has £30,750 of equity in her home. The Local Authority can only defer payments up to £134,250.

Scroll down to 'Equity Limit'
https://www.proceduresonline.com/resources/careact/p_deferred_payment.html .
 

nitram

Registered User
Apr 6, 2011
30,855
0
Bury
@nitram I’m wondering if this second property will count as an asset as it it not her “main or only home”
I think it will be an asset, I was pointing out that there was no chance of a mandatory disregard.
The LA will want her share sold, either by selling the property or joint owners buying her share.
Even of a DPA was agreed the share may have to be sold to pay the debt.