What happens when money has gone?

[father ted]

Apologies as I am sure this has been asked many times before but it is only now that I am looking into care for Mum that I have considered it.
Mum has savings and proceeds from property that would last about 7 years in most of the care homes I have looked at. But what happens after that? I know the LA will step in and pay to a ceiling of so much but I understand that may only be around £600pw, a little more than half of what they charge round here.
I have a disabled daughter and gave up work around 8 years ago when Mum came to live with us so I have no income at all. What would happen?

 

[malengwa]

Your LA will do a financial assessment when her savings drop below the £23500(or there about can't recall exactly). How much they will pay varies between LAs. To be honest a lot can happen in 7 years so I'd probably be inclined to not worry about it now but get the best care you can, which isn't always the most expensive and ensure she gets good care now. I was worried as mum only had enough for about 2 years but as it turns out, she has deteriorated much quicker than that and has now got CHC. You just never quite know what is around the corner with this disease.

 

[Pickles53]

In my mum’s care home, it was guaranteed that after three years self-funding they would accept the LA rate whatever it was. Worth asking when you research homes if they have a similar policy.

 

[jenniferpa]

Well you're doing the right thing in looking into it now rather than later. If you did nothing the la would have to find at least one home that would provide care at the rate they will pay with no top up. However, this might quite possibly mean a move, and maybe not to a place you would prefer. However it is not uncommon for a home to be prepared to state in writing that if you pay the self funded rate for 2 or 3 years they will undertake to accept the la rate when the time comes.

 

[nitram]

Seven years is a relatively long time, anything could happen.

If your Mum has to go into residential care you could try and negotiate a period of self funding after which they would accept the LA tariff.
Remember that self funding fees are increasing so decrease your 7 year estimate as low as they will let you, maybe start at 4 or 5.

EDIT
Must learn to type faster.

 

[father ted]

Thank you so much for your replies. Having not done this before I had no idea that it was possible to negotiate with some care homes prior to an admission.
Nitram you are quite right that 7 years is a long time and a lot can change in a very short space of time.

 

[nitram]

I had no idea that it was possible to negotiate with some care homes prior to an admission.

With self funders currently paying at least 40% more than LA assisted (without top up), and LA tariffs static or reducing forcing self funding rates to increase, guaranteeing a few years of income at the going self funding rate can be attractive.

 

[mancmum]

There is a possibility of buying an annuity which depending on the financial figures involve might mean that there is an income which can pay fees in perpetuity. Obviously I am not offering financial advice and the sums vary according to age, severity of illness and general health. The average care home stay I understand is about 3 years...I think my Dad will exceed that and for that reason I think the annuity is the road to go.