Best way to release money form the house for parents' care?(12 Posts)
My parents are both elderly and frail. One has an Alzheimers diagnosis, the other had a stroke a few years ago, they both have memory problems and various physical issues.
At the moment they live together in their house , with private agency carers paid for out of Attendance Allowance, just in the morning to help with dressing / showering. One has continence issues - getting to the loo in time.
We are weighing up finding a care home or looking for live-in care. the house has a nice en suite guest room.
How have people approached releasing equity or other ways of borrowing against the house? To be as economically efficient as possible?
Any specific recommendations for banks or finance schemes?
Live in care is cheaper. They get to stay in their own homes and be together as well. Care homes are extremely expensive and you do not get your monies worth! I know because I work in one. Do not bother.
Would they be entitled to any more help? DFil had a stroke and has carers four times a day. This is means tested out of his savings. I think he is allowed up to £23k.
He lives with us now, but the package could have been put in place if he was in his own home.
Could be worth speaking to social services about available care. If you are living in your home it’s value is not counted for care purposes, just your savings.
They do not have £23k savings, so could probably get care.
I do think they are better in their own home at present. A care home for both would be very expensive. And I am not sure they are suited to care home living. Though we haven't actually looked at any, tbf.
How can we source live in care?
Are you sure they need live in care rather than, say, 4 visits a day from a care worker.
With less than £23,250 (each) they will qualify for help from the local authority but they will only cover 'necessary' care and it's never usually someone living in.
Ask Adult Social Care for care needs assessments for both and they will then have to put in help for the necessary care. If that care then costs more than a a care home per week they will usually only find up to however much that is.
Try this before releasing money because that won't be easy. If it does come to it that they both have to go into a home only then will the home value be taken into account.
Does the 23.5k savings have to be in addition to the value of the house?
Value of house not taken into account for care agency, it's capital savings. Will also take income into account
I recently arranged live in care for a couple with dementia as it was cheaper than paying for 2 care home places...it depends on the local authority. A live in care package can be around £900 per week here.
Ask for a Care Act assessment.
Councils can take a ‘charge’ on the house title to recover fees. Worth exploring with social worker and finance team.
Please don't do an equity release thing on your parents home... And please never do this to pay for care as you are v v v likely to lose far more than you gain.
Please ring you local adult services dept and ask for a Care Act assessment. Really best leave what level of support they'll need to discussions/exploring options of with the visiting social worker who'll far better work that out with you and may even arrange funding for most of it.
Can't help with the finances, but when we looked at local care homes , we discovered that there were no vacancies. Places which do become available are allocated to those with greatest need first.
We are currently using https://www.country-cousins.co.uk to introduce live in carers, we have three who come for fifteen days at a time, two weeks with one day overlap
So far, it's working well, not ideal to have strangers in the house but we know our mother is safe, warm, well fed and in her own home. It could be a lot worse.
We were in a similar position to you a couple of years ago with my PIL’s. We rented out their house (we had Power of Attorney and PIL’s didn’t have capacity anymore) and this helped cover the cost of their care. It was a lovely house and we didn’t have any problems renting it and were lucky enough to have two very good tenants during the 2.5 years that we did this. We did find we had to use a tax accountant to help us with their tax return each year as with their pensions and “income” from the house there was obviously tax to be paid but apart from that it was relatively easy.
This might be worth considering?
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