The Savings Threshold

Tender Face

Account Closed
Mar 14, 2006
5,379
NW England
Sorry - self-funding issue - I keep reading about the £21,000 threshold .......

Is that total assets or just 'liquid savings'?????

I am not trying to reduce mum's savings just for the purpose of avoiding any potential care fees (although if she were well enough to go on a World Cruise - I'd make sure she blew the lot on herself and there'd be no savings left for anyone to worry about :rolleyes: ) ....... BUT - mum's 'liquid savings' hover around the £25k mark (most of her assets - like many no doubt - are tied up in the property she owns).

There are identified improvements to her home which are becoming more necessary than purely cosmetic ....... (not just a coat of paint stuff - central heating system, replacement patio doors, exterior maintenance stuff .... probably needs a total rewire actually!:eek: )

As EPA I have dug myself into a hole of trying NOT to spend money on her behalf unnecessarily - but wonder now if it would be better to use some of her savings to 'invest' in improvements to her home?

I guess the key questions are:

- If mum's (liquid) savings go below the threshold have we then removed the element of choice regarding care, if/when it comes to that?

- If the property value is already taken into account anyway - then 'best use' of savings would to be to make the improvements so that the property would realise more value and fund more care until such time the money runs out?

- To spend or not to spend? :confused:

Thanks for any ideas, love, Karen, x
 

jenniferpa

Registered User
Jun 27, 2006
39,448
Hi Karen - really I'm not stalking you:D

Are you talking about funding for a nursing home? Or funding for home care? If the former it's definitely total assets (liquid plus property). The latter though I think varies by LA - different authorities have different calculation methods. I know when I was looking at this for mummy, I realised I would in one sense have been better off to have purchased a property costing far more in order to spend down her liquid savings (or even taken out a mortgage).
 

Tender Face

Account Closed
Mar 14, 2006
5,379
NW England
You can stalk me all you like Jennifer as long as it helps clear my head of all this jumble!!! ;) :D

Another element of the equation of course - is could mum cope with any 'improvements'???? - just having a new lock fitted has been a test!!!!! But as things stand - her house - and main asset is in danger of deteriorating ... less value - less number of months/years care in a 'home' of our choosing - this really isn't how 'investment' should work is it? :(

I hope, too, that 'live in care' will be the solution when we need 24/7 help ...... (well, I know those are mum's wishes) ....... so - mindful of that possibility - I/we could use some savings to prepare the house better for that eventuality .....

The whole problem is I guess, knowing there are a limited amount of assets and how best to use the them against a backdrop of no prognosis ......

Love, Karen, x
 

jenniferpa

Registered User
Jun 27, 2006
39,448
Obviously only you know what would be best. However, I think you're correct that maintaining the fabric of the house (both in order to maintain it's value and to potentially make your mother more comfortable) is a worthwhile use of resources. I agree though that major changes (or potentially even minor ones) could cause problems. I think in your position I would be inclined to do such things as would maintain, add value and possibly make recuruitment of live in help feasible. To the latter end, off the top of my head, a bedroom with an ensuite bath might be an option. This may not be feasible in the property, but if it could be done, particularly if it didn't effect an area that your mother used, that might stand you in good stead in the future.

Another thing to bear in mind Karen. Should your mother subsequently require residential care, not having a large amount of liquid assets could stand in her favour. I'm thinking about the 12 week disregard that is oiffered to people who have a house to sell but no liquid savings. At £600 a week for a nursing home, that potentially offers £3600 of "free" (as in you don't have to pay it back) money. We couldn't take advantage of that because of liquid assets, but you might be able to.
 

Kayla

Registered User
May 14, 2006
621
Kent
Dear Karen,
I think that it is probably worth spending money on your Mum's house to have an effecient central heating system and to keep the outside looking decent. If it needs to be sold in the future, a house in reasonably good order would be easier to sell and would be worth more money. Also, if it was to be rented out at any time, there are minimum standards for rental property.
We had to virtually rewire Mum's house and later on replace the back boiler, in order to be able to let it. However it has been worthwhile because once everything was sorted out, the income from letting helped pay towards Mum's Nursing Home bills and we would not have needed to sell the house for several years.
Of course the other reason for maintaining your Mum's house, is that it wil be more cmfortable for her to live in.
Decorating around her might be a bit of a problem though!
I know my Mum didn't like the idea of having people doing work in her house, but I took her out shopping when she had a new bath put in, so she didn't hear all the banging and clatter.
Kayla
 

Grannie G

Volunteer Moderator
Apr 3, 2006
70,381
Kent
I just have to say that if I had workmen in to do any home improvements, Dhiren would be unable to handle it.

He just wouldn`t know where to put himself, would be unable to enter rooms where they were and would feel like a stranger in his own home. I admit half the time he does feel like a stranger in his own home, but he would be totally thrown and confused if work was being done.

I know everyone is different, but please give it serious thought making arrangements.
 

angela.robinson

Registered User
Dec 27, 2004
520
77
hi karen
i can see the sense in keeping the house in good repair ,to keep it saleable or even rentable , more so, making it comfortable for mum.be carefull what you choose to do ,i had a lovely shower room put in for jim ,upstairs in the spare bedroom but his mobility was gone within a few months of completion ,then i considered a stairlift , but was advised against this as with jims new stage of aggression and confusion , i would never have got him on to it, as it happens it would have been another total waste as he was taken in to hospital and never returned home , at the time we had the shower room put in i allso had a few other jobs done around the house .....IT WAS A NIGHTMARE ..... with Jims aggression at its worst. however ,2 houses on my rd have had downstairs toilets and one a shower ,put in downstairs, 1 in the utility room , the other in the cupboard under the stairs , with hindsight i would have gone for that option perhaps extending outside from the cupboard on to the drive . good luck whatever you decide , hope your stress levels can stand it
Angela.x
 

Margarita

Registered User
Feb 17, 2006
10,824
london
Could you not give up your job and pay yourself a wage out of her saving , your going to have pay someone anyway to cook, clean house.

Just pay yourself what the government say carer should live on 88 pounds a week for 24/7 :D

Joking aside ;)

Pay yourself what agency charge people an hour around , 11 pound or more an hour find out the going rate is your also need paid holiday leave, while your on holiday you pay an agency , then am sure your mother saving will go down below SS level or till its all gone, by that time your mother would need 24/7 , and you want to go back to your old job

So then SS would have to fork out money for 24/7 care for her in her home, because saving are all gone

Just a thought , as long as you keep record like they do with direct payment , can't see why it can't legal be done .:)
 
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Tender Face

Account Closed
Mar 14, 2006
5,379
NW England
Oh brilliant! Thank you all for your words of wisdom!!!!!

Maggie - we all know we're all worth a million pounds an hour!!!!! ;) :D That should leave mum without about five seconds in a nursing home should she need one! :D

Kayla - I'd forgotten all about renting options ...... oh eck - I know I'm worrying about what never may be ....... :eek:

'Needs must' basis then ...... day by day ....

Love, Karen, x
 

Margarita

Registered User
Feb 17, 2006
10,824
london
That should leave mum without about five seconds in a nursing home should she need one!

If she needs Care home you would have to sell her home to fund it, unless SS keep funding her at home .

In my area I know of 2 people that own they own home SS fund they care 24/7 , well know they family One man has Parkinson disease , Woman last stages of AZ can't walk , they live alone
 
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Nebiroth

Registered User
Aug 20, 2006
3,511
Can I just add, reading through the first post, that spending savings etc suddenly on holidays etc is likely to be viewed with extreme suspiscion by the local authority who might well deem it as a deprivation of assets. This means deliberately spending savings or other assets, or giving them away, in order to evade care fees. There is no time limit on how far back they will explore your finances to do this, and they have very extensive powers to charge fees against said "assets".