Resources or websites for care home funding finance facts

[ShetlandTony]

Hi all

I provide some support to my Dad who has advanced Alzheimer's. My Mum does most of it though.

We were talking about long term plans for when my Dad may need round the clock residential care. This won't be for a little while and at the moment he has helpers who come and take him out which works quite well.

My Mum and Dad have always had separate finances as they have both always worked full time and they have different attitudes to money. My dad was a saver and a bit of a skinflint whereas my mum always says "spend it then they can't take it away from you"! Anyhow, because of this difference, my Dad has loads in savings and my mum only a little.

In the conversation about care home fees my mum seemed to think that they would run down all of Dad's savings (bar the small amount they leave you with) to pay for it before state funding kicked in leaving my mum with only her small savings. I said I doubted it worked like that and I thought their assets would be treated together as they are married and therefore only half of their joint assets would be taken to pay care home fees (and the house could not be sold while my Mum was living in it).

Anyhow.... I have promised to research the situation for my Mum.

So to my question (finally!). Does anyone know of good resources that explain the finance situation clearly?

Thanks in advance!
XXX

AgeUK website, factsheets and helpline for further questions.

There are lots of As he UK fact sheets on the subject on their website, e.g. factsheet 39
Paying for care in a care home if
you have a partner

We were advised it's best to have separate savings accounts as only accounts in your name and half of joint accounts will be taken into account. If savings are in joint it's half at the time of each assessment so £200k could be run down to 2 x the limit. Whereas £100k each would end up as £100k for the spouse not needing care and the limit for the one needing care. We have separate savings account but keep them fairly equal each.

This is my understanding:

Assets are assessed separately. He will be self funding from his assets until they drop to £23,250. Then it is a sliding scale until they drop to £14,250. His share of their home will also be taken into consideration. Anything in a joint account will be deemed to be 50% unless you can demonstrate otherwise.

When no longer self funding, 50% of his income from pensions, remaining investments etc will go towards his care costs, the other 50% goes to the spouse.

You need to contact the Local Authority roughly three months before the £23,250 level is reached, so when the money drops to about £60k. You need to be careful when choosing a home that the LA will take over payments, if it is not on their list, he could be expected to move when his money runs out.

Also, be aware that self funders pay more than council funded people as their fees subsidise the non payers. It's another form of taxation that no-one talks about.

Hi - my mum decided herself that she wanted to go into a care home some years ago. Neither of us knew anything about the financial issues surrounding how her place would actually be paid for.
And she was a widow, whereas your dad is very much married to your mum and they live together. My mum owned her house outright.
I actually found the process of dealing with mum's Local Authority Social Services finance people far more distressing and challenging than seeing my mum go into residential care.
I needed to apply for some, not all, funding for her place until her house was sold, and she would then self-fund. I was interrogated as to why I had to do things like maintain her house insurance policy, have the heating come on for a whole hour per day, (it was winter and I didn't want frozen, then burst, water pipes).
I was treated as if I was trying to exaggerate my mum's ongoing household expenses in order to get more money out of them.
I got so stressed that I went to Age Concern, (as it was then - it's now Age UK), and spoke to a guy who was employed there as an expert in this field.
What eventually happened was that the Local Authority did part-fund my mum's place as her income didn't cover it all, put a Legal Charge on her home, meaning they got that money back when the house eventually sold.
Sorry to tell this somewhat rambling story, but it is a complicated issue if you're new to it all. You are correct in believing that your mum can't be forced to sell the house as, I assume, she is over 60?
I wish I'd consulted Age UK at the very beginning, and I would point you in that direction for proper, professional advice.They have helpful leaflets on this very subject.
Whilst I've been typing, I see 4 people have posted in the meantime, who may be more knowledgeable than me in your parents' situation.

Hi all. Thanks for all the info.

I'm thinking it would be in my mum's best interests if we moved some of my dad's savings into joint names and therefore she would be left with 50% for her needs in old age. I could probably do this as I have power of attorney. However would we get in trouble for this?

It should really be viewed as my mum's money too as they are married. If my dad hadn't been such a awkward person she would not now be penalised! Also my mum has to have money from my dad's account transferred each week so she can pay for stuff on behalf of my dad. It would be so much easier if they had a joint account.

Any thoughts?

Xxx

I guess the other thing is my mum is providing so much care for my dad. Could my dad essentially pay her for that care - this seems fair to me?

This would likely be seen as deprivation of assets sadly and your Dad would effectively be treated as he still had the money.

It's fine to use POA to spend some of your Dad's money on things he needs, including care but paying your Mum to care for him would likely be dodgy ground.

Age UK are good for general information and if you want specific financial advice I would look at a financial advisor from SOLLA.

In general, money in his name would be treated as his and he would have to self fund until he reached the capital limit. The house wouldn't be considered as part of his assets as long as your Mum was alive and living in the house. If he is in permanent residential care, it is possible that your Mum would be able to retain half of any of his private pension even if his care became council funded. It's also worth looking at if the house is owned as joint or tenants in common as this can impact on how it can be left in wills.

Have your parents applied for/ got attendance allowance? Not means tested. If not, seek help from cab/ age uk in applying.

Also- discount on council tax? Age uk can advise on all they are entitled to.

Attendance allowances ceases if you go into a care home and are not self funding. But while you’re still self funding it’s a very welcome addition.

Thanks @thesandwich and @MereDintofPandiculation - they have got attendance allowance and council tax discount so that's all done. Good shouts though!

Have you got LPAs for both money and welfare?

@RosieMilkJug - sadly not. It was enough of a battle trying to get him to do the financial one. He never would have signed the health one. Too late now as he doesn't have capacity.

Oh dear, sorry to hear that.