Joint bank accounts and care home contribution

[Maggiemol]

I know this is something that comes up regularly but I can't find a recent response. My OH has severe AD along with advanced heart failure and kidney disease. I have LPOA but want to make sure I am not caught out financially. If in the near future he has to go into a home and an assessment made I know they take into account his savings, 50% of his private pension and his retirement pension. We have a joint bank account and I have pensions but exactly what else could they claim from our joint account? Surely they couldn't make a claim on my income?
I know the general advice is to have separate accounts or at least for me to make sure I have a separate account but I just wanted to understand why and what the issues are.
thanks

 

[Pickles53]

I know this is something that comes up regularly but I can't find a recent response. My OH has severe AD along with advanced heart failure and kidney disease. I have LPOA but want to make sure I am not caught out financially. If in the near future he has to go into a home and an assessment made I know they take into account his savings, 50% of his private pension and his retirement pension. We have a joint bank account and I have pensions but exactly what else could they claim from our joint account? Surely they couldn't make a claim on my income?
I know the general advice is to have separate accounts or at least for me to make sure I have a separate account but I just wanted to understand why and what the issues are.
thanks

It is assumed that 50% of the money already in any joint account belongs to each person, so if there is a significant balance already that would count as capital for your husband. If his total capital is below the £14k limit that may not make any practical difference to the financial assessment. You are right that your personal income and pensions in your own name are not counted. I would recommend that you have your income paid into a separate account so it's clear.

 

[Maggiemol]

Thanks for the clarification

Thanks. I will make sure the savings in his name are lower than 14k and set up my own bank account. Just so everything is simple if/when the time comes.

 

[Philbo]

Thanks. I will make sure the savings in his name are lower than 14k and set up my own bank account. Just so everything is simple if/when the time comes.

I'm in the process of trying to untangle our accounts at the moment. We have 2 current accounts with the same bank (originally to maximise interest income), both in joint names.

I called their powder of attorney team for advice on how I could register my wife's LPA with them and convert one of the accounts to sole only (me).

It's been a bit of a mission, as the bank require both account holders to sign, before they'll make it a sole a/c. I explained that my wife can no longer write or communicate clearly.

They also don't normally register a "deputy" on a joint account, where the person is already on the account (you wouldn't normally need to as you have access anyway). However, they have agreed to register the LPA (which will apply to all of her accounts) then once done, I have to go to the branch. Then they will sort out removing my wife from one of the accounts (on seeing various bits of documentation).

I have already moved the various d/d's and income sources (state and private pensions) to try and make it more transparent for my wife's income, expenses etc.

I have always been quite fastidious about keeping track of finances, so armed with loads of past info, I've been able to put together a simple spreadsheet listing all the things we've spent associated with her care. Was quite an eye-opener, as I was shocked how much we'd spent on pull-ups etc, in the 18 months before I found out that the district nurse team could supply them!

Although she would be self funding at the moment for any care needed (respite, day care of eventually CH), her funds wouldn't last long. So I feel fairly confident that I have done enough to help with any future assessments (famous last words).

As if caring isn't hard enough?!

Phil

 

[Saffie]

Thanks. I will make sure the savings in his name are lower than 14k and set up my own bank account. Just so everything is simple if/when the time comes.

It's not that simple I'm afraid. If you don't split the savings account equally it will be queried by the LA if they should ever be involved. Equally, unless there is good reason, the same will apply to the current account.
Your own income and half the accounts will not be assessed but documentation for all your husband's assets, his own and joint, will be scrutinised going back in time - usually about a year though they can go further.

 

[Maggiemol]

It's not that simple I'm afraid. If you don't split the savings account equally it will be queried by the LA if they should ever be involved. Equally, unless there is good reason, the same will apply to the current account.
Your own income and half the accounts will not be assessed but documentation for all your husband's assets, his own and joint, will be scrutinised going back in time - usually about a year though they can go further.

I should have guessed it wouldn't be that simple. Although my OH is quite ill I am not considering a care home in the short term but want to get things in place if possible. Our savings are not equal but that is because my husband retired 20 years before me and my tax free lump sum from my pension pot is mainly in my name, so I would argue my case.
it is very useful to have your advice and ultimately what will be will be. Thank you.

 

[Saffie]

I should have guessed it wouldn't be that simple. Although my OH is quite ill I am not considering a care home in the short term but want to get things in place if possible. Our savings are not equal but that is because my husband retired 20 years before me and my tax free lump sum from my pension pot is mainly in my name, so I would argue my case.
it is very useful to have your advice and ultimately what will be will be. Thank you.

Oh yes, if you can prove the greater contribution is from your pension pot that should be fine I think.

 

[Philbo]

I should have guessed it wouldn't be that simple. Although my OH is quite ill I am not considering a care home in the short term but want to get things in place if possible. Our savings are not equal but that is because my husband retired 20 years before me and my tax free lump sum from my pension pot is mainly in my name, so I would argue my case.
it is very useful to have your advice and ultimately what will be will be. Thank you.

I have the same issue as since we married (40+ years ago), my wife only ever worked part time after the kids started school. So all of our savings have come from either my earnings or from my lump sum received when I retired early, aged 59.

As I was for some time a higher rate tax payer, savings were split between us both, with us opening cash ISAS and other bonds in either mine or my wife's name. We've always been open about our finances, although she has always preferred me to sort it all out. I have always valued her love and support over these years so I do not begrudge her sharing our assets (if it wasn't for her efforts, whilst I worked all hours earning a crust, I wouldn't have saved a bean?).

Should the time come where she needs a financial assessment, I hope that the LA will take this into consideration, but all the tales on TP about desperate measures due to funding cuts, rising CH costs etc, fills me with dread.

 

[marionq]

The simple solution I'm afraid would be to move the funds into your name where you can. If you die first they will go to your wife for her care presumably, unless you have willed the funds to your children. If you leave the funds in your wife's name and she is assessed for care then that is what will be in the assessed assets for her.

If at any time you should be asked, unlikely I think, you can show the funds came from your pension pot or earnings but if they are already in your name then they become your assets.