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What happens when the money runs out - self funding?

RichardAB

New member
Nov 29, 2021
4
0
I joined this forum because an elderly relative has Alzheimer’s and I wanted to try to understand more about problems she and the family would face. It has been very informative and I have gained an insight into how this awful disease affects people. Thank you.

Sadly, a good friend of mine has also recently been affected by dementia and is now in a care home. The questions I want to ask is about his and his wife’s financial circumstances, as the explanations and answers she has been given don’t make 100% sense.

He has recently gone into full time care, and is self funding.

They own a house under ‘Tenancy in Common’.

Both have savings above the £23500 threshold.

The wife has a state pension plus a very small pension, total less than the ‘new state pension’

He has his state pension, plus 2 main pensions which provided the bulk of their income and was used to maintain their house and living costs. He receives full Attendance Allowance.

They are self funding the care home costs from his pensions and savings at the moment.

Their house has high overheads which was paid for by his pensions.
She has been led to believe that she shouldn’t use any of his pension money, it should all go to funding his place in the care home.

Question 1. Is she entitled to use part of his pensions to provide for the upkeep on his share of their house? Without this facility, she will not be able to maintain the house in good repair, nor pay heating bills etc as her pensions are insufficient.

Question 2. When his savings reach the £23500 point, we understand that the council takes a charge on his share of the property to pay back what he owes. Can she still use part of his pension to maintain the upkeep on their house?

Question 3. When the value of his share of the house is used up, what happens to her financially? Can she still use part of his pensions to maintain the house? Or is all of it taken by the council before they top up the care home fees?

Thank you
 

Bunpoots

Volunteer Host
Apr 1, 2016
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Nottinghamshire

thistlejak

Registered User
Jun 6, 2020
220
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I agree about the disregard of the property all the while his wife lives there and also about her being able to have half of his private pensions.
She can also apply for pension credit - they take into account savings, but she might get something.
I think that any carer's allowance finishes after he goes into care.

So the answers to your questions are
1) yes she can have half his private pensions
2) the house is disregarded while she lives there. She should be able to keep the half pension even when LA are paying but we didn't get to that point so you would need to check.
3) his share of the house won't be used up unless she dies before him.

Hope this helps.
 

My Mum's Daughter

Registered User
Feb 8, 2020
158
0
I'm no expert but the tenancy status means that should the wife die first, her portion of the house goes to the beneficiaries of her will. This may be her husband in which case, it could be something that she'd want to change.

You'll probably need proper legal advice.
 

RichardAB

New member
Nov 29, 2021
4
0
Thank you for these replies. Very helpful. For some reason I can’t give individual replies, it says I don't have enough points.
 

RichardAB

New member
Nov 29, 2021
4
0
Thank you everybody, that’s great. I can’t work out how to post individual replies - it says I don’t have enough points?
 

canary

Registered User
Feb 25, 2014
18,123
0
South coast
Thank you everybody, that’s great. I can’t work out how to post individual replies - it says I don’t have enough points?
You are probably trying to reply correctly, but until you have posted 10 posts you caint post a link, or reply to a post that contains a link
This post does not contain a link so you should be able to reply to it if you want to try
 

Thethirdmrsc

Registered User
Apr 4, 2018
626
0
Interesting post as I am going through the financial assessment at the moment. Our house is disregarded as I still live in it, but because I am not yet of pension age, but my husband is, the council tells me all of his pensions will be used to fund his care home, ( we are LA funded) . However our solicitor told me today that I should be entitled to half of his private pensions. This will be a god send, but I will still have to get some sort of job. Not easy at my age.
 

canary

Registered User
Feb 25, 2014
18,123
0
South coast
@Thethirdmrsc - I think the default assumption is that all the pensions will be used towards the care home fees and the spouse has to apply for half of any private pension (not state pension)
 

RichardAB

New member
Nov 29, 2021
4
0
You are probably trying to reply correctly, but until you have posted 10 posts you caint post a link, or reply to a post that contains a link
This post does not contain a link so you should be able to reply to it if you want to try
Thank you!
 

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