Sale of home/Care costs

[JKPT]

Hi - Need help/advice
Need to sell mum`s home (don`t want to rent it out)to pay for care costs but mum`s savings are likely to run out before the sale is complete. I`ll then have to pay the monthly cost of her care until the sale is complete and proceeds to hand.
- Can I legitimately deduct any money of my own that I have to pay for her care from the proceeds of the sale? (Nothing is owed to the local council etc.)

 

[tss502]

Hi,

I don't think you should have to pay for your mum's care costs - this would be from her own savings/house sale. If the money from the house sale is delayed I think the Council would be picking up the costs until the money comes through. I'd suggest getting some financial advice on your situation.

 

[Pickles53]

Under no circumstances should you be required to pay your mum's care home fees out of your own finances. There is something called a '12 week disregard' which I believe means that if the only asset is a house the LA should pick up the tab for the first 12 weeks to give time for the house to be sold. If this is not enough time, you can then ask the LA about a Deferred payment agreement, whereby they pay upfront and you reimburse them after the house is sold.

I didn't use either of these schemes for my mum, but others will be along who have. I've attached a link to the statutory guidance. It looks daunting, but if you go to the Annexes there is a lot of information about the financial side of things. It does pay to do your homework and not rely on what SW or other health and social care professionals tell you.


https://www.gov.uk/government/uploa.../file/366104/43380_23902777_Care_Act_Book.pdf

 

[Witzend]

If you don't want to involve the council, and you would have enough funds of your own in the interim, then i would think it perfectly legitimate to deduct your own costs once the house is sold. I can't imagine any possible objection, as long as you keep receipts for whatever you've paid.

 

[Pete R]

Can I legitimately deduct any money of my own that I have to pay for her care from the proceeds of the sale? (Nothing is owed to the local council etc.)

Yes of course you can. Although if you cannot afford it and need help then Pickles53 is correct and the LA may be able to help out, although some do prefer to keep them at arms length.

 

[JKPT]

Thank You

Thanks to all for the advice and re-direction given. Sound and useful in all cases.

Because the property is low value - little more than £70k in its current condition I am trying to avoid the fees, valuations and interest costs of the deferred payment scheme; hoping to sell the property within 6 weeks - not unreasonable says the Est. Agent. Hence I`m looking to fund mum`s costs in the meatime myself, providing that I can recoup my outlay - and no more - from the proceeds of the sale.
It`s looking like I`ll have to "put a charge" on the sale.

 

[Pete R]

Thanks to all for the advice and re-direction given. Sound and useful in all cases.

Because the property is low value - little more than £70k in its current condition I am trying to avoid the fees, valuations and interest costs of the deferred payment scheme; hoping to sell the property within 6 weeks - not unreasonable says the Est. Agent. Hence I`m looking to fund mum`s costs in the meatime myself, providing that I can recoup my outlay - and no more - from the proceeds of the sale.
It`s looking like I`ll have to "put a charge" on the sale.

I would certainly ask the LA to help. I asked for a Deferred Payment Agreement last year and the LA are being a little slow in doing the paperwork but are paying the fees. I am under no obligation to continue but will obviously have to pay them back if I don't.

 

[Beate]

If you're asking whether you are allowed to recoup costs for your mother's care then certainly, as long as you have LPA that gives you access to her money. But as you are selling her house, I am guessing you have that. Costs for LPA or deputyship applications are also recoverable, as are funeral costs. So I wouldn't worry on that front. If you think doing it this way is cheaper and quicker than going down the DPA route then go for it, though obviously sometimes it can take longer than anticipated to sell a house, so only do it if you have enough capital yourself.

 

[MimoMilo]

Hi - Need help/advice
Need to sell mum`s home (don`t want to rent it out)to pay for care costs but mum`s savings are likely to run out before the sale is complete. I`ll then have to pay the monthly cost of her care until the sale is complete and proceeds to hand.
- Can I legitimately deduct any money of my own that I have to pay for her care from the proceeds of the sale? (Nothing is owed to the local council etc.)

Evening,
I am going through the same situation. Meeting up withSW later this week. I received info from SW regarding residential care. I am sure they can continue to pay on a deferred sceme. They charge an administration fee of £600 and then interest on top each month until you finally settle the bill. I also think if you are arranging the care privately the ch can arrange a similar thing.
I have had sleepless nights worrying " what if the sale hasn't gone through by the time savings run out" I presume it's a common thing as not all house sales go through in such a short amount of time.
Good luck x