Joint ISA - Self Funding ? Help Please

[Lotti]

Hi,
Can anyone tell me if mum should be self funding in respite care home ? She has joint ISA's with my dad, but nothing in a bank account that is solely in her name.

Three weeks ago mum had to be placed in emergency respite due to dad having to go into hospital, during his confusion (general age) said yes she had over the threshhold to be self-funding but I have since found out everything is in joint names, does this count, does she have to use her half of the money to pay for the respite ?

Any advice gratefully received

Thanks
Lotti

 

[jenniferpa]

I think you should probably call the Alzheimer's Society's help line 0845 300 0336

Respite is tricky becasue I think it's a benefit given to the carer rather than the sufferer (at least it can be). When it comes to charging for residential care (if this was a permanent placement) the calculation is based on the sufferers assets plus 50 % of jointly held assets. However, there's a loophole in CRAG (charging for residential accomodation guidelines) and that is that for placements of less than (I think) 6 weeks (it might be more) the LA can avoid doing a financial assessment and charge you what it considers to be "fair".

 

[Clive]

Hi Lotti

I am just a bit confused by your reference to Joint ISA.

If you mean an Individual Savings Account (ISA) which is tax free, I believe you will find that these have to be taken out in just one name. I believe you will find that your parents’ ISA is in just one name. Your parents may have taken out an ISA each at the same time. The bank will be able to tell you.

I cannot answer your question about who pays the respite charges, but I can tell you that once there is any prospect of one of your parents having to pay for care it is advisable to stop keeping savings in joint accounts.

It is always assumed that any money left in a joint account is always owned half and half.

Clive

PS Have you managed to get an Enduring Power of Attorney set up so you can manage your parents finances?

 

[jenniferpa]

Clive's right of course - if it was truly an ISA it can't be joint. Could it be another type of joint account?

 

[Lotti]

Thank you Jenniferpa and Clive for your replies.

I believe the ISA's are Investment Savings Accounts but will check.

Dad has not got POA only got appointeeship, although we are two and a half years down the line from being diagnosed he still burys' his head in the sand, I have to keep chipping away a bit at a time. (To be fair to him he is not a well man himself and does remarkable at looking after both mum and himself)

Thanks again for replying.
Lotti