It would be interesting to know what the OPG view is and if the FIL is wealthy enough for the OP to know he would never require funded care even if still yet to live a lengthy life in middle or advanced stage then seems a reasonable thing to do. If he never needs a care home and reaches end of life then any added value to the house is purely academic isn't it unless there are other siblings who may have a different view?This "Despite her being fairly well off, they still said it would be a deprivation of assets" is a bit of an oxymoron isn't it. if she's "fairly well off" then the LA may well never become involved in paying for her care so no deprivation of assets will have occurred.
If you had applied for LA funding then they may tell you this is the view they would take, but they would say that wouldn't they? If the extension costs £40k and year in a care homes in the area costs the same then it's a good use of the money if it works for just one year.
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