I am keen on these plans because it is one more issue dealt with, paid for and out of the way until needed. My husband's SW thought it acgood idea too although as yet I have not bought him one. I did buy one for SIL as she has no other relatives than us to make final arrangements for her so I am happy it is done and dusted.
I set one up for Mum and Dad after a friend of mine ended up having to take out a payday loan to pay for her Mum's funeral. They pay monthly. I certainly didn't consider this could be seen as deprivation of assets but I'm worried now!
Is your Mum being assessed for her care?
I have Age UK coming round this week so will ask them. They seem to know about these things!
It has to be "deliberate" deprivation to avoid CH fees so in my opinion what you are doing is not wrong.
However with regards to my Mom who had around £21,000 of capital (the house was disregarded at the time) the Financial Officer who came round said I could not buy a funeral plan and had left it too late.
She did say that the cost could come out of the £14,250 that is disregarded anyway which can be spent on anything at all.
I did buy one and a new assessment will take place soon so I will post when I find out how they are going to deal with it
There are many on here that have been allowed to buy a funeral plan and the assessor has said nothing.
We completed payment in full for both mum and dad's funeral plans just before dad's permanent move into residential care - both the LA and the Age Concern ( who helped us complete mum's application for Pension Credit as Dad's pension- designed to provide for them both - now is paid to the LA towards his care) advised us that this did not amount to 'deprivation of assets' as it was a reasonable cost. However, even with this amount, neither mum nor dad - or even their joint assets, not counting their home-would have been near to the £23,000 amount.
I bought a funeral plan for my mum which was helpful as far as sorting out the money was concerned but it meant we had no choice as far as which funeral director we had and I am not sure given the choice we would have gone for the funeral director we were allocated. Check out the funeral director before taking out the plan.