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Protecting Inheritance from care home ...help me!!!

(161 Posts)
lincolnpaul1 Thu 21-Apr-16 11:57:50

Hi there,
Thanks for reading this first of all....
Summary:
My mother is ill and now in care (home) with Alzheimers. She is self-funding her care home fees but the money owed is being run up on her property (about 14K currently). I have Power of Attorney over her finances and she is not in the position to make any decisions now, so I make all these. She has her house which I am currently selling for her (120K). Some of the proceeds will go to pay off the debt. We will be left with about 100K capital in mum's account. Mum will continue to self fund her care (about 700£ per week) until her saving are down to about 20K. Mum wanted to protect her savings (as much as the 100K) and obviously didn't want it all to go to her care. Does anybody know how I can/what I can do to protect this to ensure it is passed onto family?

Scootering Thu 21-Apr-16 12:00:59

I'm sorry about your mum; it must be very hard for you.

I suspect you are too late. This sort of planning needs to be done years before, and can't be 'snatched back' just because she needs to pay for care.

You need to speak to a financial advisor but your mum NEEDS the money now to pay for care.

Sparklycat Thu 21-Apr-16 12:02:21

I'm not sure there is anything you can do now as she is already in the home and her finances have already been assessed. It's a sad fact that if you need care then your assets that you've saved for all your life will be used up. Maybe someone will have found another way, and I think it's different if there is a husband/wife still alive and in the property, but from my experience there's nothing to be done.

lincolnpaul1 Thu 21-Apr-16 12:08:51

Thanks. Mum will be provided for whatever (either through her own funds or from state). She worked all her life really hard to pay off the house and now this money will be lost from those she wanted it to go to.
I know it is impossible to save the lump sum of capital, but does anyone know of what ways/rules I can give gifts and to what sum or funds to set up for her grandchildren?

LC01 Thu 21-Apr-16 12:15:41

I believe the others are right. This is what's really annoying about the system. You do the right thing and buy your house, save for your retirement, and then you end up having to give you money away, but if you were in a council property and had no savings, you'll be given a home. I would check that you're not expected to use the equity in your mothers house to pay for her care after her savings have been used up on her care.

Either way, you should contact a FA or maybe Citizens Advise to be sure of where you stand.

VertigoNun Thu 21-Apr-16 12:22:58

I understand you want to protect hard earned resources. The care your parent receives has to be funded from somewhere and if you were a cash strapped LA would you fund care when someone has a six figure assett?

Viviennemary Thu 21-Apr-16 12:23:24

I agree you need to see a financial advisor. But the information as regards sums allowed to be given away will be online. It's around or used to be around £7K per year. And under the current laws there really isn't much to be done apart from planning and putting your house in your children's name which is a bit fraught with difficulty IMHO. And would have had to have been done long before now.

VertigoNun Thu 21-Apr-16 12:24:19

I think you can gift £3,000 per year.

cozietoesie Thu 21-Apr-16 12:31:27

'Deprivation of assets' is a complex area. I'd seek the advice of a good financial adviser right away. (But I wouldn't be too optimistic if I were you. )

WipsGlitter Thu 21-Apr-16 12:32:07

However, I am not sure if even with POA you could make gifts on your mums behalf.

A pp was right, this needed to be sorted years ago, but even then it isn't that simple.

lincolnpaul1 Thu 21-Apr-16 12:40:00

I am realistic about it I think, but I do know you can gift a certain amount but I do not know exact figures....does anyone know a link on the web?

Would you recommend seeing a lawyer of financial advisor?

lincolnpaul1 Thu 21-Apr-16 12:41:29

I am allowed to make gifts as a POA. the rule is it has to be in keeping with what she would do...

VertigoNun Thu 21-Apr-16 12:41:30

Solicitor.

DorynownotFloundering Thu 21-Apr-16 12:46:20

If your mum is in a nice care home & is comfortable then the money she has earned over her life is going just where it should do & you are lucky it is not you having to provide it.

Inheritances are not a given right & personally I would rather every penny of my mums money was spent on keeping her as comfortable & well looked after then worry about who is going to get what when she dies.
The Home are not stealing the money it is just payment for services she needs.
Her care wil be covered hopefully until she no longer needs it & then if you & the grandkids are lucky a small residue will remain to test yourself to something to remember her by.

I think you have your priorities wrong here OP.

vvviola Thu 21-Apr-16 12:47:16

I don't know how the system works (not in the UK), but would there be the option of renting out the house and using the proceeds to fund her care? That way the house may still be available to be left to family members eventually, but there is also money available.

Bassetfeet Thu 21-Apr-16 12:51:49

The money from the sale of your mums house and her savings will be used sadly .
Get good financial advice re where to put investment for good return helps a little .
Also check your mum is getting all the. allowances she is entitled too. Like attendance allowance or mobility though I am not sure about mobility .

Be very careful about withdrawing large sums of money for the family . It is a minefield . Called ' Deprivation of Assets ' by social services if your mum reaches the cut off point when the council step in to pay . No one could tell me how much is seen as this ....but be assured the bank accounts will be scrutinised for evidence of this .

Having said this I probably draw about £ 500 a year for family birthdays and Christmas ( as my mother wishes ) and of course money for her needs which I certainly don't skimp on .
Keep immaculate records of any withdrawals

It is so sad to see how fast the money runs out on fees . My bugbear is that self funders pay more in fees than those paid for by the local authority .
Oh and self funders have to pay for chiropodist etc.

It is very difficult .

ArundelTomb Thu 21-Apr-16 12:54:37

Go and get some advice from a solicitor.

It's very upsetting to have been prudent all your life only to have to fork out for care home fees while others who were less prudent receive state funding.

lincolnpaul1 Thu 21-Apr-16 12:57:40

DorynownotFloundering thank you for your comment and I think you have mis-read me here. It is hard to write everything and just wrote the facts to keep it short rather than give you everything about my family life.
My mother is comfortable where she is and that has always been my priority. Rest-assured my priorities lie in the right place! I spent many a day/week trying to get the best for her. She will stay there now (regardless of who is paying). You are right that inheritance is not a given right but I know she worked 2 jobs (cleaning and manual labour) and grafted to pay for the house...I know she would have wanted something more to go to the family and this is why I ask and ask for help as to the rules on this. This is something I do not know alot about and that is why I ask....

lincolnpaul1 Thu 21-Apr-16 13:01:23

Yes I know, she has always put everything she earned into the house at the expense of her going on nice trips. I wish she had just rented and used the money to travel more and treat herself :-( It is very sad.

ThroughThickAndThin01 Thu 21-Apr-16 13:05:45

I agree that it's too late I think.

You can gift money, but have to survive 7 years after it has been gifted for it to escape inheritance tax I believe. She needed to have done that before it got to the stage of her needing to go into a home.

Mooey89 Thu 21-Apr-16 13:13:18

Adult social care social worker here.
The only way that a house is written off as an asset and not expected to be paid is if spouse or dependent is still living in it.

Gifting away money will be requested back and please be aware that of it is gifted to you that will also put your LPA in jeopardy.

Any gifting away of assets would have to have been done way way before the person became ill.

ArundelTomb Thu 21-Apr-16 13:21:13

There are some things you can still do. Definitely worth seeing a solicitor (preferably one with a STEP qualification).

WaitroseCoffeeCostaCup Thu 21-Apr-16 13:21:26

Some very strange views here that anyone who rents their house is not 'financially prudent'. Poverty is a real thing...even for those of us breaking our backs working multiple jobs.

NewLife4Me Thu 21-Apr-16 13:35:22

I didn't know they asked for gifted money back again. What happens if the person has spent it years ago. Surely you can't be asked to pay back what you haven't got.

AnneElliott Thu 21-Apr-16 13:36:47

I think you can buy something like a care home annuity which agreed to pay the fees until your mother's death. It obviously costs a hefty sum, but it's worth exploring as once purchased the care home feed are sorted and what ever is left can remain to be distributed after her death.

Sorry you're going through this. I'd advise you see a specialist financial adviser.

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