Hi all,
I read earlier of an idea to categorise some of these threads, and a Finance thread would be a good idea.
I got some good news this week.
Mum is self-funded, I always knew she would be as we decided to sell her house rather than go through the option of keeping it, getting local authority funding and a "loan charge" against the property, as we decided it would be hassle we could do without, even though it might have been a financial benefit in the end.
I knew she would be entitled to Attendance Allowance, though it took three months from application to approval, but was backdated to June. Until they withdrew it with no notice, and no reason, and I only spotted it cos I have online access to her accounts.
Anyway, reinstated.
It is a real problem funding long-term care, not least cos none of us have any idea how "long-term" it might be, and we don't want to be in a position of having to move our loved ones somewhere else because we can't afford to pay for the home they have known and hopefully enjoyed for several years. I can't think of anything more cruel.
Then we went through the difficult that her "Assessed Income Period" had ended (for the purposes of Pension Credit - she only got the savings credit, no guarantee credit).
If you are reading this and haven't a clue what I am talking about - ask!
The reason as to why the AIP had ended was unclear. I read that it was because she had gone into a care home, and indeed that seems to be true, but I was also told it was because she had sold her home. The young official on the phone said "selling your home is a life-changing event, I mean it's not like winning £4m on the lottery is it?". I agreed, it isn't, but I would have thought that winning £4m on the lottery was rather more life-changing than selling a terraced cottage for £130,000 that you had bought, paid for and maintained for 50 years. The former is unexpected and uncommon, the latter is expected and common.
Anyway, several months ago I applied for mum to be allocated the additional allowance in her pension credit calculation for "severe disability". I received a swift letter telling me she was not eligible for that, so when I spent the next month organising a Care Home Insurance plan for her, I assumed a certain amount of income as I was then aware of (basic state pension plus a small addition cos of my dad's NI contributions), and made decisions accordingly.
The house was sold, and the money invested in various ways. If anyone wants any ideas on how it can be invested (I am not a financial adviser, can only tell you SOME of the options and what we went for, but it might make a start to know what questions to ask, you make your own decision), please let me know.
As far as I was aware, everything was settled. State pension plus little extra, Attendance Allowance, and income from investments.
The letter this week tells me that mum is entitled to an extra £48 a week. Made up of £29 allowance for severe disablement and £19 Savings credit. First query, why the £29 for severe disablement when I had already been told she wasn't entitled to it. Answer, because she gets Attendance Allowance. Oh. No-one had told me that one opened the door to the other.
Then, why £19 Savings credit when previously she had been awarded the same amount, but it was reduced by 40p in the pound for any income she had above some upper limit. Oh, that reduction doesn't apply if you get he Severe Disablement premium. Right. No-one told me that either.
I am learning all the time.
So the financial decisions I made a month ago are now inappropriate because mum now has £48 a month extra income - for the next 5 years, cost she now has an Assessed Income Period running from 6th August 2007 (the day she entered a care home on a permanent basis) and 5th August 2012. And any changes in income or capital (including the sale of her house which was after 6th August 2007) are disregarded.
Fortunately, the financial decisions I made are not affected detreimetally by this, only to the extent that over the next 5 years we will have more income to fund mum's care than we thought we would have. Can't be bad, we can invest the excess.
So I am a happy bunny.
But cross with the DWP for taking so long, giving us one decision and then reversing it (actually two different decisions, both reversed), and giving no explanation at all that was comprehensible. When you ring them up, you might get a knowledgeable member of the call centre staff (cos that's who you get, you don't get a DWP person), or you might get one who started last week and has only just learnt how to use the computer, let alone have any idea about the benefits to which you might be entitled. This week I was fortunate to get the former.
What it all means for me is that mum will be financial secure in her home until she is 94 (13 years) without dipping into her capital apart from the next 3 years which can be reasonable planned for. When she is 94 we might need a re-think, but will still have some reasonable capital left. And all from a little terraced cottage.
I am feeling comfortable.
Thanks for listening, and hope some of you have understood me, and if not, get in touch.
Regards and love to all
Margaret
I read earlier of an idea to categorise some of these threads, and a Finance thread would be a good idea.
I got some good news this week.
Mum is self-funded, I always knew she would be as we decided to sell her house rather than go through the option of keeping it, getting local authority funding and a "loan charge" against the property, as we decided it would be hassle we could do without, even though it might have been a financial benefit in the end.
I knew she would be entitled to Attendance Allowance, though it took three months from application to approval, but was backdated to June. Until they withdrew it with no notice, and no reason, and I only spotted it cos I have online access to her accounts.
Anyway, reinstated.
It is a real problem funding long-term care, not least cos none of us have any idea how "long-term" it might be, and we don't want to be in a position of having to move our loved ones somewhere else because we can't afford to pay for the home they have known and hopefully enjoyed for several years. I can't think of anything more cruel.
Then we went through the difficult that her "Assessed Income Period" had ended (for the purposes of Pension Credit - she only got the savings credit, no guarantee credit).
If you are reading this and haven't a clue what I am talking about - ask!
The reason as to why the AIP had ended was unclear. I read that it was because she had gone into a care home, and indeed that seems to be true, but I was also told it was because she had sold her home. The young official on the phone said "selling your home is a life-changing event, I mean it's not like winning £4m on the lottery is it?". I agreed, it isn't, but I would have thought that winning £4m on the lottery was rather more life-changing than selling a terraced cottage for £130,000 that you had bought, paid for and maintained for 50 years. The former is unexpected and uncommon, the latter is expected and common.
Anyway, several months ago I applied for mum to be allocated the additional allowance in her pension credit calculation for "severe disability". I received a swift letter telling me she was not eligible for that, so when I spent the next month organising a Care Home Insurance plan for her, I assumed a certain amount of income as I was then aware of (basic state pension plus a small addition cos of my dad's NI contributions), and made decisions accordingly.
The house was sold, and the money invested in various ways. If anyone wants any ideas on how it can be invested (I am not a financial adviser, can only tell you SOME of the options and what we went for, but it might make a start to know what questions to ask, you make your own decision), please let me know.
As far as I was aware, everything was settled. State pension plus little extra, Attendance Allowance, and income from investments.
The letter this week tells me that mum is entitled to an extra £48 a week. Made up of £29 allowance for severe disablement and £19 Savings credit. First query, why the £29 for severe disablement when I had already been told she wasn't entitled to it. Answer, because she gets Attendance Allowance. Oh. No-one had told me that one opened the door to the other.
Then, why £19 Savings credit when previously she had been awarded the same amount, but it was reduced by 40p in the pound for any income she had above some upper limit. Oh, that reduction doesn't apply if you get he Severe Disablement premium. Right. No-one told me that either.
I am learning all the time.
So the financial decisions I made a month ago are now inappropriate because mum now has £48 a month extra income - for the next 5 years, cost she now has an Assessed Income Period running from 6th August 2007 (the day she entered a care home on a permanent basis) and 5th August 2012. And any changes in income or capital (including the sale of her house which was after 6th August 2007) are disregarded.
Fortunately, the financial decisions I made are not affected detreimetally by this, only to the extent that over the next 5 years we will have more income to fund mum's care than we thought we would have. Can't be bad, we can invest the excess.
So I am a happy bunny.
But cross with the DWP for taking so long, giving us one decision and then reversing it (actually two different decisions, both reversed), and giving no explanation at all that was comprehensible. When you ring them up, you might get a knowledgeable member of the call centre staff (cos that's who you get, you don't get a DWP person), or you might get one who started last week and has only just learnt how to use the computer, let alone have any idea about the benefits to which you might be entitled. This week I was fortunate to get the former.
What it all means for me is that mum will be financial secure in her home until she is 94 (13 years) without dipping into her capital apart from the next 3 years which can be reasonable planned for. When she is 94 we might need a re-think, but will still have some reasonable capital left. And all from a little terraced cottage.
I am feeling comfortable.
Thanks for listening, and hope some of you have understood me, and if not, get in touch.
Regards and love to all
Margaret