How do we stand now.

Discussion in 'Legal and financial issues' started by Casbow, May 18, 2018.

  1. Casbow

    Casbow Registered User

    Sep 3, 2013
    925
    Colchester
    My husband has Vascular dementia. He has been in a nursing home for 1 year now. (Diagnosed 11 years ago.) Up until now, after a financial assessment, his money in his name is frozen and shared accounts is half for him and half me. So a proportion of the money in our joint bank account it taken every month to help towards his nursing home fees, I get pension credits. Last October our son found a bungalow, opposite where he lives,up for sale that would be perfect for me. (I was living in a village with only 4 buses a day so if I could not longer drive I would find life very difficult. As do many retired people that don't drive. So long story short I managed to sell our house and move into this bungalow which needs an awful lot of work. No heating or hot water, and basically everything to do. It was an executor sale and had been totally cleared out of everything. Eventually I moved in and the work has started. Our son is helping me by doing most things but we have had to pay to get gas boiler etc put in. My question is. I know that half the money we made from selling our other house is my husbands but I thought it would be ok to use my half of the money to pay to get the work done. I have (we only moved in 5 weeks ago) been gradually working my way through a list giving all the necessary people my change of address. I rang the pension people yesterday to tell them and the lady started asking about how much we sold our house for and what we paid for the new home. I told her and she said that i would possibly lose my pension credits. That on its own is not my worry. I am now worried that they will say that the money I have will have to be used to pay his fees. I am not using his half of the money. All the house money is in a completely separate account . So I was going to get the vital work done with my half and then I suppose they will take his half to pay for his care. Can you advise please.
     
  2. canary

    canary Registered User

    Feb 25, 2014
    6,713
    Female
    South coast
    Why not put the house money in two separate accounts - half in an account in your husbands name (with you as POA) and the other half in solely your own name? Then the 2 lots cannot be confused
     
  3. Louise7

    Louise7 Registered User

    Mar 25, 2016
    433
    It's not clear what you mean by his money being 'frozen' but I would agree that having separate accounts would be better, rather than your husband's fees coming out of a joint account. I take it you already have power of attorney, so the bank will be able to arrange a separate account in your husband's name.

    You need to contact the financial assessment team asap to let them know about the house sale as half of the proceeds will need to be taken into account in your husband's financial assessment. Only your husband's money/income will be assessed, not yours.
     
  4. marionq

    marionq Registered User

    Apr 24, 2013
    4,620
    Female
    Scotland
    As I understand it you are entitled to make a house move without considering a straight 50/50 division of the sale price. The cost of the new home should place you in the same position you were in at your previous home but in a safer space near your son.

    Is that not the case?
     
  5. 70smand

    70smand Registered User

    Dec 4, 2011
    198
    Female
    Essex
    I know my mum is in a similar situation to you with dad in a care home for just over a year. She gets a small amount of pension credits as the benefit that entitles her to is worth more than half dad’s private pension. I know her savings are taken into account of her financial situation as they will be with you so if you now have more savings due to the sale of your house then maybe it will affect your pension credit. It doesn’t seem fair though if you need the m9ney to do up the new house for essential work. You shouldn’t be in a worse position if the work needs doing then maybe they assess you financially after the work is done.
    I would be interested in your outcome as this migh5 be a dilemma my mum has to face in a few years time if she decides to move, that is, if she can afford anything with half the value of her home.
     
  6. Louise7

    Louise7 Registered User

    Mar 25, 2016
    433
    In an earlier thread Casbow referred to getting the new house habitable before sharing any money left and was advised to seek professional advice about the situation, so I think that's the best thing to do in the circumstances:

    https://forum.alzheimers.org.uk/threads/legal-position.108415/#
     
  7. Grannie G

    Grannie G Volunteer Moderator

    Apr 3, 2006
    66,404
    Kent
    I may be wrong but I suspect as long as the new house is in joint names, home improvements could come from both pockets, as long as they come from the selling price of the original home and don`t reduce savings.

    Whatever my theory I would always check first with a financial adviser.
     
  8. jugglingmum

    jugglingmum Registered User

    Jan 5, 2014
    4,223
    Female
    Chester
    You mention being worried about losing pension credit, the pension credit is nothing to do with your husbands money but yours, I think.

    The amount you get is assessed on your income subject to a cap if your savings are too high, so it might be she was referring to your cash that you are using for the house. Maybe citizens advice can help.

    As others have said, if the house needed work doing, it might well be that your husbands money could be used as well as yours, but this is different to pension credit and different rules.
     
  9. Casbow

    Casbow Registered User

    Sep 3, 2013
    925
    Colchester
    The lady I spoke to yesterday was the Pension Service person and she said that I would need reasessing. She didn't say I would have to get in touch with anyone. I assumed she was going to do it. I have also told the council who deal with my husbands account and take his contribution every month. No one has ever said I would be better off with a separate account. My husband has a private pension to which I am allowed half. That is paid into our joint account. By frozen I mean that "in the words of the assessor" we will take half your husbands private pension, all of his state pension, all of his ISA, and half of your savings account. In actual fact it all is still in the same places but the Council send me an invoice every month which is paid by Direct Debit. I do appreciate your advice. Should I get in touch with the financial assessment team or wait. As i think the lady I spoke to is letting who- ever know. She said it will probably affect my pensions credit. Which I expect it will. Thankyou.
     
  10. Grannie G

    Grannie G Volunteer Moderator

    Apr 3, 2006
    66,404
    Kent
    It`s obvious we`re all lay people here Casbow and can only say what we think, not what we know. Your best bet is to contact someone with financial acumen who can give you the correct advice.
     
  11. Casbow

    Casbow Registered User

    Sep 3, 2013
    925
    Colchester
    Yes. Exactly. We had a very nice bungalow in a village. But it was not good to go anywhere without a car. Hardly any footpaths except the school area. So can't walk safely to get out of the village. I do drive but worry that I may not be able to one day. Age has a way of making things difficult, especially eyesight. So this bungalow i have moved to is perfect. Bus 3 mins walk away runs every 15 minutes. I can walk to the hospital,doctors, dentist and small co-op. I can even walk to town if I fancy it. Takes about 30-40 minutes. I would never try to take what i shouldn't from my husband but i know that his half will take him over the £23,000 so His money will be used. That will mean that i will not get pension credits which is fine but i wonder where it will leave me with my small pension plus a small private pension. The bungalow we bought needs an awful lot of work. But i was feeling very happy that I had enough to do what is important without touching Davids half. x
     
  12. allchange

    allchange Registered User

    Nov 29, 2015
    55
    This might answer some of your questions, this is a 2014 version so may not be the latest.


    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/373263/dmgch84.pdf

    In particular

    Ca pit al di sr e g ar d e d f or a y e ar or l o n g er
    P eri o d of di sr e g ar d
    8 4 5 6 1 T h e p eri o d of di sr e g ar d i n t hi s p art of t h e g ui d a n c e i s
    1. eit h er
    1. 1 t o t h e e n d of t h e AI P if t h er e i s a n AI P or
    1. 2 o n e y e ar fr o m t h e d at e of t h e p a y m e nt
    w hi c h e v er i s t h e l o n g er p eri o d or
    2. f or o n e y e ar fr o m t h e d at e of r e c ei pt of t h e p a y m e nt if 1. d o e s n ot a p pl y .


    And Paras

    M o n e y w hi c h a p er s o n g et s t o b u y, r e p air or alt er a
    h o m e
    T h e l a w
    8 4 5 7 7 M o n e y w hi c h a p er s o n g et s, or w hi c h i s d e p o sit e d i n a p er s o n’ s n a m e, i s
    di sr e g ar d e d f or t h e p eri o d i n D M G 8 4 5 6 1 if it i s f or t h e s ol e p ur p o s e of
    1. b u yi n g pr e mi s e s w hi c h t h e p er s o n i nt e n d s t o o c c u p y a s t h e h o m e or
    2. p a yi n g f or e s s e nti al r e p air s or alt er ati o n s t o t h e pr e mi s e s
    2. 1 o c c u pi e d a s t h e h o m e or
    2. 2 i nt e n d e d t o b e o c c u pi e d a s t h e h o m e .
    1 Sc h V, P art I, p ar a 1 9
    E s s e nti al r e p air s or alt er ati o n s
    8 4 5 7 8 E s s e nti al r e p air s or alt er ati o n s ar e t h o s e w hi c h ar e n e e d e d t o m a k e t h e h o m e fit t o
    li v e i n b y t h e cl ai m a nt, or t h e cl ai m a nt’ s p art n er. F or e x a m pl e, it i s e s s e nti al t o r e p air
    t h e r o of t o m a k e t h e h o m e fit t o li v e i n if t h e r o of i s l etti n g i n w at er.

    Sorry for the strange font, copy and pasted.
     
  13. allchange

    allchange Registered User

    Nov 29, 2015
    55
    From Age UK fact sheet 39

    3.4 Pension credit rules
    If you receive Pension Credit (PC) as a couple, your entitlement changes
    if one of you permanently enters residential care. The Pension Service
    treat you as two separate individuals and eligibility for PC depends on
    your individual levels of income and capital.
     
  14. Casbow

    Casbow Registered User

    Sep 3, 2013
    925
    Colchester
    I only started getting pension credit when my husband went into a nursing home. I really appreciate all your comments and you have helped to stop me worrying so much. I will ring on monday to make sure that the correct people know my change of circumstances. I think they probably have been told by the person I spoke to on Thursday. Thankyou.x
     

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