Self funding and finite assets

[Boldredrosie]

My mum went into a care home in the spring, which is working out brilliantly for her. However, she's totally self funding and while I clearly knew how much the place cost now that I'm writing the cheques each month I can see her assets dwindling. I've calculated how much she's got and how many years that will cover if the home don't put up the costs but I'm wondering at what point does she get any help?

Does everything have to go -- cash, house, the lot -- before there's any assistance? The house issue is complicated by the fact that Ma and I jointly own our house, which is mine and my teenage son's home -- and he's very unwell.

 

[Beate]

i think the house will be safe. You can't be forced to sell your half and no one will buy just half a house. Plus you're living in it and there are several disregards (person over 60 living in it or with a disability). After that, the savings threshold is £23,250 for part assistance and £14,250 for full assistance. When I say full, of course your Mum's pension would go towards any care home costs (minus an allowance of £24 or something) but she is allowed to keep those £14,250.

The thing is though that once SS are paying for it, they might find her a cheaper home if they can argue it also fulfills her needs. You would then have to argue why a move would be detrimental to her, or agree to a top-up, but that could be hefty.

 

[Pete R]

i think the house will be safe. You can't be forced to sell your half and no one will buy just half a house.

If there is no Mandatory or Discretional disregard then this is no longer the case. It was under CRAG but in the CA2014 the part about half having no value was not included and appears to a deliberate act. There was a thread on here last year where someone in a similar position had half the value assessed as capital by the LA.

 

[Boldredrosie]

It was under CRAG but in the CA2014 the part about half having no value was not included and appears to a deliberate act. There was a thread on here last year where someone in a similar position had half the value assessed as capital by the LA.

Ah, that doesn't sound good. Actually, I only own a third even though I have paid the mortgage ever since we moved here and, for the most part, every other bill associated with house (although I shared some major repairs 50/50 with my parents, which, of course, I shouldn't have done given I only own a third). Well, I suppose I best brace myself for an enforced move in a couple of years when her money runs out.

 

[Pete R]

Well, I suppose I best brace myself for an enforced move in a couple of years when her money runs out.

There is still a Mandatory/Discretional Disregard to be considered and also the possibility of a Deferred Payment Agreement.

 

[arielsmelody]

If you are paying the mortgage in full anyway, would there be the option of buying your mum out and staying in the house? When you consider estate agents fees, SDLT and all the rest, it might be financially just as good an option to you as selling up and moving to a smaller place.

 

[la lucia]

Ah, that doesn't sound good. Actually, I only own a third even though I have paid the mortgage ever since we moved here and, for the most part, every other bill associated with house (although I shared some major repairs 50/50 with my parents, which, of course, I shouldn't have done given I only own a third). Well, I suppose I best brace myself for an enforced move in a couple of years when her money runs out.

If you have a record of these expenses - mortgage payments, repair bills etc., that should count. Plus you have your son living there with you and he's not well.

I think you should call the AZ Society helpline to make sure you have good advice but I can't see a council chucking you out in reality.

However I can see this must be very worrying for you. So perhaps useful to make sure you get all your ducks in a row and make sure any communications from the Local Authorities are in writing.

 

[Boldredrosie]

...would there be the option of buying your mum out and staying in the house?

Unlikely, I doubt I could afford to raise the money to pay Ma's two thirds and also, I wouldn't want to buy this house (frankly wish I'd not been party to buying it)

 

[Boldredrosie]

However I can see this must be very worrying for you. So perhaps useful to make sure you get all your ducks in a row and make sure any communications from the Local Authorities are in writing.

After everything we've been through I'm not especially worried but as you say it's about having ones ducks in a row.