what about mums house?

Discussion in 'ARCHIVE FORUM: Support discussions' started by Carolyn1, Aug 1, 2010.

  1. Carolyn1

    Carolyn1 Registered User

    Jul 31, 2010
    23
    I hate talking money but i need some advice..... Mum is new to the care home and is on respite at the mo. She will be staying there long term. What do we do about her house? Do we have to sell it to fund her care? I dont want her to lose out on what she is entitled to, its horrible thinking like this but if I know in advance I can ask the social worker.
     
  2. Onlyme

    Onlyme Registered User

    Apr 5, 2010
    4,999
    UK
    As far as I am aware if she has over £22,000 in money/assets she will have to fund her own care. Depending on her physical needs she might get nursing allowance of about £104 a week.

    Would it be possible to rent out the house to get an income to fund her care without having to see the house itself?
     
  3. LynneR

    LynneR Registered User

    Sep 11, 2009
    28
    West Sussex
    The amount of assets is now £23,500. Look at the Society's fact sheets for advice on funding care. Doing the same myself at present as mum has just been placed in care.
     
  4. Sandy

    Sandy Registered User

    Mar 23, 2005
    6,847
  5. fredsnail

    fredsnail Registered User

    Dec 21, 2008
    649
    #5 fredsnail, Aug 1, 2010
    Last edited: Aug 1, 2010
    We're renting out Grandad's house to help pay towards his fees - it's a way to make his money stretch a little further and last longer as we will still have the value of the house to sell if required later on.

    Houses in our area are taking 12+ months to sell at the moment too so it seemed to be the best (and quickest) way to make some money.

    If her savings run out you can ask if the social services can put a charge on the house - that means that they will pay the fees (if I recall correctly this is interest free until after your Mum passes), and will also mean that they may get the cheaper social care rate (if it is different to the self funding rate).

    Grandad's social worker however ran for the hills as soon as he realised that Grandad had over the limit in savings and a house so we've not seen him in over 2 years now. The only thing we got was a list of current care homes.
     
  6. Clive

    Clive Registered User

    Nov 7, 2004
    716
    I presume your mum has been claiming the Council Tax rebate that is available for a person with Alzheimer’s disease who also receives Attendance Allowance.

    If you have any concerns about this continuing now your mum is in a Care Home you should know that most Councils give a “Council Tax EXEMPTION” for a house where the resident is in a Care Home.

    Clive
     
  7. Laurie

    Laurie Registered User

    Aug 6, 2010
    1
    manchester
    #7 Laurie, Aug 6, 2010
    Last edited by a moderator: Aug 6, 2010
    Hi I am in the same boatas you. I really don't want to sell mum's house as I grew up there and she really wanted to keep it as an inheritance for the grandchildren. I have looked so far on the internet and found a few things but I am confused with regards to her entitlements as she really needs to go into hospital.
    I just read that you can get extra help if the care must be given within an institution.Commercial link removed for moderator consideration
    I wish we had thought of all of this before but I believe you don't think you'll ever have to go into residential care.

    Hello by the way everyone - I am new and my name is Laurie
     
  8. JanD

    JanD Registered User

    Sep 1, 2008
    60
    Manchester
    If you can demonstrate that your mum's primary need is a health need then the NHS should fully fund her care including the cost of accommodation..
     
  9. Margaret W

    Margaret W Registered User

    Apr 28, 2007
    3,725
    North Derbyshire
    As people have said, you don't have to sell the house. But consider carefully whether renting it is a good idea. I don't know what the market rent might be or the size of the house, but take a house with a rental of £600 a month, £7,200 a year. Furnished or unfurnished? If furnished, everything needs to be legally compliant, i.e. up to date fire-retardant materials, so it might cost a couple of thousand to comply with that (settee, bed, etc), and will need to be cleaned at every change of tenancy. The house will need to be decorated internally probably every year, and carpets cleaned, perhaps £500. All electrical appliances must be tested annually and properly serviced, so maybe another £200. Insurance of contents and buildings £500. Garden maintenance maybe £200. And the tenant will expect any faults to be rectified at once, e.g. central heating on the blink, faulty light switches, anything. Add on another £300 at least (a single plumbing emergency could cost that). Fees for the agent in finding a tenant and drawing up a contract, say £500. Fees for the agent in finding a tenant and drawing up a contract, say £500. Annual costs about £2,200 ignoring new furniture. Net profit £5,000. Less tax £4,000. That's just over £300 a month towards the care home fees. Will that make a difference to your mum? Oh, and bear in mind that with a short-term tenancy, there will probably be 2 months a year with no tenant, so deduct another £1,200 a year, making only £200 a month for mum's fees. And you might get the odd tenant who doesn't pay up at all.

    Alternatively, sell the house for £150,000 and if all you need is £4,000 a year to pay the extra for mum's home, that will last you about 40 years.

    I've painted a gloomy picture, maybe, but not unrealistic, and never mind the hassle of dealing with agents and tenants, gardeners, cleaners etc.

    We sold mum's house, and spent £60,000 on a care fees plan that would guarantee a certain amount of income (about £750 a month) for life to pay part of her carehome fees. AS it happened, mum died within 18 months, so the plan was a "waste of money" some might say, but it gave me peace of mind.

    Yes, SS will put a charge on the house if it can be agreed, and that might be a good way forward, but it will be snaffled by them when she passes away.

    It is complex. If mum has the additional income from the rented property, it will affect her entitlement to pension credit too, so bear that in mind.

    It's a minefield, isn't it?

    Sorry, I haven't been of help, just put forward stumbling blocks, perhaps not what you wanted to hear.

    Good Luck with your decision.

    Margaret
     
  10. angelmarbella

    angelmarbella Registered User

    May 29, 2010
    222
    Marbella, Spain
    Thanks very much for this very useful thread and posted links.

    Sally
     

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