Sorry if this isn't the right place for this. I wasn't sure where to post.
DH has an elderly relative whose wife developed dementia many years ago. She has been in full time care for some years and her dementia is now so severe she has no comprehension at all of what is going on. Their daughter has power of attorney.
DH's relative is now struggling to cope and needs to sell his house (joint owned with his wife) and move to a more manageable property. Our understanding from Age UK guidance is that if he sells the property then technically the money would then come into the calculation of how much state support his wife gets for her care (she is currently part funded). However, if some of her 50% share is needed to buy the new property he moves into, she can give over some money to him to do that and that money would then not be taken into consideration in calculating the support she is eligible for. Age UK say the council wouldn't view this as an attempt to avoid paying care costs.
Our questions are whether there are any restrictions on this and where we could find out more in principle. DH's relative is sadly terrified of even asking the question of his own financial advisor as he is convinced he is going to "lose his home" and not be able to afford to buy another one as the money will be taken for care costs. Their daughter is also feeling overwhelmed, so we are trying to find out for them as much as we can in principle.
Would he have to "prove" to the council that he needed 'x' amount from his wife's share and how would he do this? Is there a limit on how much of the money can be used to buy another property?
I'm not suggesting he would, but, if, say, you wanted to sell a 4 bed house and buy a really expensive 2 bed flat for the same price in a posher area, could you do that? As I say, he's not wanting to do that but it would be really helpful to know what the limits are.
Does it make a difference if he buys a flat in a sheltered accommodation situation?
The Age UK guidance suggests there is no clear single process for what happens to the rest of the money. It looks like some councils will take it into account and others won't. Does anyone know where we could find out more about this in principle?
And does the power of attorney thing complicate matters?
Finally, presumably if he went into residential care himself, then the money simply would be split 50:50 and used for care costs for them both? If that does happen is there anything he can do to pass some of the money to his daughter? We're not trying to cheat the system at all but he worries about not leaving her any inheritance.
Are there other factors we should consider that we haven't thought of?
We'd be really grateful for any advice.