Paying for the care home.

[kenaidog]

My mil is seeking advice on her position. She does not have much in the bank, maybe a few grand but thats its, her husband has dementia and will need to go into a home soon, question is what will happen to his private pension and government pension plus the carers allowance. She said he has some kind of lock in thing in his private pension where 50 per cent cant be tounched but she is not fully sure about what that is for, Can you have this is your pension so that part of it is protected in the future.
Im just really trying to work out for her how much she will be left with each week, she has a income over about £13000 per year from there pensions.

 

[garnuft]

FIL's care and how much he pays, depends on FIL's capital, saving and income.

Every person is an individual with regards to savings, exceptions being that a marital home is disregarded (though there can be clawbacks if it is sold) and private pension, the spouse is allocated half.

If he is self funding, Attendance Allowance/DLA will be retained (including mobility component) private and state pension.
Carers Allowance will cease...though technically it COULD be claimed.

If he is not self funding...state pension, AA/DLA (though NOT mobility component) half private pension and all of state pension will be relinquished towards the cost of his care.

No one receives free care...though lots of folk would suggest that they do.

 

[kenaidog]

Im confused, what is the difference between self funding and non funding. I think ive read this wrong. He has no capital as such, they have joint account and any money would be together.

 

[Beate]

You are self-funding if you have more than £23,250 in capital or savings. In a joint account, half of the money is classed as yours.

 

[garnuft]

Self funding is when a person has more than around a lower limit of£24,000 below that amount the person pays £4 for every £1000 until to hit the bottom limit, when savings are disregarded at about £14,000.

A person pays all the costs of their care until their savings hit £24,000 then a proportion until it hits £14,000.

When they are paying themselves....self-funded...they continue to claim AA/DLA, keep all of their pensions, private and State.

If they are funded by the State, their spouse can have half of a private pension but their State pension is paid back to the State, AA and Carers Allowances ends.

 

[kenaidog]

What is capital or assets counted as please?

 

[kenaidog]

Self funding is when a person has more than around a lower limit of£24,000 below that amount the person pays £4 for every £1000 until to hit the bottom limit, when savings are disregarded at about £14,000.

A person pays all the costs of their care until their savings hit £24,000 then a proportion until it hits £14,000.

When they are paying themselves....self-funded...they continue to claim AA/DLA, keep all of their pensions, private and State.

If they are funded by the State, their spouse can have half of a private pension but their State pension is paid back to the State, AA and Carers Allowances ends.

So what about this clause in his pension?

 

[garnuft]

I don't know what that means.

What is the clause?

I have never heard of a pension SO protected.

I know there are clauses to divert money to other parties upon death but a protection? while alive?...new to me.

Capital and assets are the same thing, they are all valued.

Money, houses, stocks and shares...but a spouse...i.e. civil partner, husband or wife has SOME protection with regards to the 'marital' home and half private pension.

 

[Kevinl]

"some kind of lock in thing in his private pension where 50 per cent cant be touched " That really sounds strange, can't be touched by whom; him, the authorities? Doesn't really make sense.
The only thing I can guess is that as only 50% of the pensions will be taken to pay for care that in that sense the other 50% can't be touched by the authorities and so is safe for his wife.
Other than that the facts are pretty much as garnuft says.
K

 

[kenaidog]

"some kind of lock in thing in his private pension where 50 per cent cant be touched " That really sounds strange, can't be touched by whom; him, the authorities? Doesn't really make sense.
The only thing I can guess is that as only 50% of the pensions will be taken to pay for care that in that sense the other 50% can't be touched by the authorities and so is safe for his wife.
Other than that the facts are pretty much as garnuft says.
K

I have no idea tbh, i dont think she has either and she has no documents for it to look at so she must be going from what fil has told her years ago.

 

[Shedrech]

I wonder if she's thinking of a 50% Widows' and Orphans' pension - company pension scheme rules were often set up so that the surviving widow will receive a pension after the death of her husband and it is usually set at 50% of the pension that the husband receives. It doesn't mean that 50% 'can't be touched' by the husband but does mean that 50% will continue to be available to her - so 'can't be touched' as in taken away from her.
PS She can contact the pension provider to check details - there will be payment advices sent at least once a year and if payments are made monthly into her husband's bank, the bank will know details of where these are sent from.

 

[kenaidog]

I wonder if she's thinking of a 50% Widows' and Orphans' pension - company pension scheme rules were often set up so that the surviving widow will receive a pension after the death of her husband and it is usually set at 50% of the pension that the husband receives. It doesn't mean that 50% 'can't be touched' by the husband but does mean that 50% will continue to be available to her - so 'can't be touched' as in taken away from her.
PS She can contact the pension provider to check details - there will be payment advices sent at least once a year and if payments are made monthly into her husband's bank, the bank will know details of where these are sent from.

Yeah thats the only thing she has, so by the sounds of it, they will take half his private and full gov pension and she will be left with half of private her own small pension so maybe she will get pension credit.