Mum's finances if Dad goes into care

[Snowdrop2016]

My Dad is not well at the moment and it's looking increasingly likely that he will need some sort of care.

I'm trying to work out what this means for my mum financially. She has some money solely in her name and also a joint account with my dad. I assume (hope!) her money won't be taken into consideration?

Also my mum gave up work when we were born, I think she is entitled to a minuscule pension so they both live off my Dads. How does that work if he goes into care, or if he passes away before mum?

Any experience would be great, I'm new to all of this and finding myself trying to sort so many things out!

Are they married?

Yes, sorry should have said!

I think he may be able to get visiting carers paid for by the Council if he has less than £16000, I think they take his money and half of any joint accounts into consideration.
It will depend on what he needs and how he is assessed etc.

Thank you, he likely will need to pay, he may tip over.

I just didn't want mum to end up with nothing. She is in good health and needs her money for her future.

AgeUK are really good for advice and help in situations such as yours

Interested in this thread as I have in laws in a similar position, with the dad really needing residential care due to worsening dementia, the mother over 65 but fine to live on alone in the house at the moment. They have about £50K, I think, in a joint account. They are married. Who 'owns' their capital from the POV of the authority?

When did they reach State Pension Age ?
If they both reached SPA prior to the introduction of the new State Pension on 5/4/2016 then I think your mum would probably inherit part of your dad's state pension if he pre-deceased her.

It is a good idea to pay some extra money monthly for your mum from the joint account to her single one. My experience is that when assessing assets they did not look too closely at the transaction just the balance. Transferring regular money to a spouse won’t raise any eyebrows. Any money held jointly is halved for assessment consideration. My step dad got my mums private pension paid to him as well. Do you know how much they have in joint accounts .

Joint accounts will be split 50:50 . Your mum's individual accounts won't be taken into account.

Different experience to a pp - the assessor went through the bank statements with a fine tooth comb, and queried everything that was outside normal household scope. (Inc holidays, payments to children, car purchases etc)

Make sure that property is split as tenants in common rather than joint tenants.
Wills need to reflect changes as well. So it used to be that a common will would say that the spouse would get everything on the death of the other. And what you need to do going forward is to establish a split.

Make sure your mum/dad are claiming attendance and carers allowance.

My Dad is 80, mum is 75. I'm not certain what this means for state pension age but I'll definitely look into it. Thank you

Their property is a whole different problem I fear. It's not registered with land registry but we do have the deeds. Looks like it's in Dads name, they (he I guess) bought it just before they married in the 70's.

It's in a very bad state so is probably not worth an awful lot tbh. One to tackle another day, I had no idea there would be so much to sort out. It's given me a resolve to get my things in order so my son doesn't end up dealing with this!

Make sure your mum claims all that she can. Use a benefits calculator like entitledto or similar.

The cockroach cafe on the elderly board is useful - even if it's just to realise that there are others in same boat.

My biggest takeaway is to input your own oxygen mask on first - ie don't take on too much!

If you do take the advice to start making regular transfers to your mum the sooner you start the better. It is quite legitimate as she will be involved in more expenses as his position worsens. Not just her spending money but covering the bills. This also can be started now, Keep a note of where the money is going and what it is for. Transfer DDs and SOs to this account . Again it is a normal thing to do and will not be seen as hiding money, it is true that different LAs act differently.The young lady that came to see me was really lovely. She told me what he was entitled to and where to get help.

One of the best things I did was to make all of my stepdads accounts in to names joint with me. I was also added to all their joint accounts a full account holder. This meant I was really able to help him while my mum was incapacitated and later when he needed help himself.

my understanding is that if they own their own home the value will be ignored while your MIL is still living in it, and any capital in joint accounts will be taken to be half MILs and half PILs.

If your father has been unwell for 6+ months or is terminal, he will qualify for AA at whatever rate is applicable. Carer's Allowance is only payable to carers under SPA.

If your father has been diagnosed with a brain disorder (stroke/dementia etc), he will qualify for SMI Council Tax discount, which starts at 25% depending on Local Authority.

AgeUK is a great source of information regarding finances and care costs.

Do you have power of attorney for them? If not, try to get it set up as soon as possible, assuming they are both still mentally fit to sign the documentation. It makes life so much easier when one or both is not able to handle things.

It's probably a good idea to make sure that they are both listed on the deeds as joint tenants if she's in good health. This means that they cannot take the value into account if your mother is living there and on his death it will automatically become hers in full, not inheritance tax etc involved.

Re:- his pension - did he take out a “widow’s pension” when he took it out? You can choose whether to or not.

That’s entirely correct. The home is disregarded if still lived in by the spouse and in some either cases too

www.ageuk.org.uk/siteassets/documents/factsheets/fs38_property_and_paying_for_residential_care_fcs.pdf

If your mum's state pension will be low then she would get topped up with pension credit possibly but also depends on her share of joint savings.

People of state pension age cannot be paid carers allowance. They can get an underlying entitlement to carers allowance which can give premiums on means tested benefits like Pension credit.

Does your dad have a work or private pension as well as the state pension? If so, you should check that he has nominated your mum for a widow's pension and any death benefits. When my father died, my mother got a suprisingly large proportion of his work pension as a widow's pension, but I know they all vary.

@Snowdrop2016 I don't have anything practical to add OP as it looks like it's all been said but I just want to send you some huge hugs. Having been in this situation really recently I appreciate how soul destroyingly hard it can be, not least watching the effect that all the worry and fear had on my mum. I hope things work out well for you and your family.

As pp's have already said the home won't be taken into consideration whilst your mum lives in it. Joint accounts are generally treated as 50/50. If your dad goes into a home the council's welfare rights team or a charity such as Age Uk or citizens advice may help you with benefit claims for your mum if her sole income and capital is low. They wouldn't be treated as a married couple for benefit claims if one living in care and the other at home.