Protecting property if parents go into care

[Abwettar]

Hi, I'm wondering if anyone can give me some insight regarding protecting my parent's home from care home fees?

The current situation is that I am an only child, there is no other family. Aside from the house, there are no other assets. My parents have joint ownership of their house, worth around 100k, and are both currently living there. They are both in poor health, my dad has been diagnosed with terminal cancer and my mam has been diagnosed with dementia - however they both have capacity to understand the situation at the moment. They have always been adamant on me getting the house after they pass.

There are no plans for either of them to go into a care home, I would like for them to stay in the house as long as it's safe to do so, with care from myself and carers going in throughout the day.

I was looking into putting the home into a trust, but I have read some conflicting information on if this would be considered deprivation of assets due to their poor health.

My question is, if both my parents were to make a will and each leave their 50% share of the house to me, would this protect at least part of the house? For instance, if one of my parents passed away, would their half of the house be protected from care home fees, even in the situation that the other parent had to go into a care home?

Any advice on this situation would be greatly appreciated

Thank you

Speak to a reputable solicitor, there are things that can be done as long as both your parents have capacity.

Blaming/bashing people on benefits doesn't really help your cause.

How is expecting the taxpayer to pick up the bill for your parents' care when they have assets that could pay it any different from people claiming benefits, many of whom have also previously paid taxes.

The point remains.

I wouldn’t take the risk of going ahead with something advised by a solicitor. Not when OP’s mum has a diagnosis of dementia. Like I said, the local authority will go through all aspects of that person’s affairs and can go back years. They are wise to all the stuff people do to get rid of or hide assets.

A reputable solicitor will know what can and cannot be done and can advise on capacity as people with early stage dementia can still have capacity. There are things that can legitimately be done but they need to take proper legal advice.

Lots of scaremongering. Of course leaving a will setting out what you want to your half of the estate isn't deprivation of assets. You cant dodge your own liability but you cant be forced to pay for someone elses either. Keep them at home for as long as possible op - the house isnt included in the assessment for home care and sounds like you step in anyhow.

Do you live with them? Is that a possibility? If you live there... you might be able to avoid having to sell the house...

I’m sorry but I think it’s too late and Trusts work better for those that have more money. I do think it’s worth getting advice on the tenants in common option.
I would forget about your inheritance as nothing is guaranteed and no one can say how things will work out. Care homes are not all equal and you may want to spend money on a better one.

If one parent dies and they leave their half of the house to you as joint tenants that is not deprivation of assets and cannot be considered as such by Social services,
That is your inheritance from the deceased parent.

If you put it in a trust at this stage with them both in failing health that would be considered deprivation of assets as it’s now reasonable to assume they put it in trust once knowing they were not fit and well. It’s just too late for a trust.

As such a will would be the best thing to do

Only if OP is under 18 or a dependent of her parents

No it wouldn’t. This is making a will. When the person has passed away there is nothing SS can do about it.
Nothing stopping them trying of course but you can’t question someone’s intent if they are not around to answer.

If some can’t pay why should others have to.
That’s before we even start looking at how much self funders have to pay to heavily subsidise councils underpaying
The whole system is a disgrace

There was another thread on this very recently OP, perhaps there’s more advice on that.

This is wrong. It would be deliberate deprivation of assets in the view of the LA. Your parents may need that money for their care and unfortunately it won’t go very far. It’s too late to do anything now I’m sorry.

The thing is
person a could have 150k burn through it and piss it away they would get free care

person b have 150k live a frugal life buy a house and have to pay for care

It isn’t deprivation of assets. They are entitled to own half of the house each.

If your parents scrimped and saved all their lives to afford a house worth 100k, it’s unlikely that they were ever net contributors. That means they’ve already taken out more than they put in. Just taken less than those who’ve never worked. The reality therefore is that they should contribute to their care as there isn’t enough money left to pay for them. That money is coming from the likes of my dh, who is a net contributor and we now know that despite his having paid up all his NI years and still having to contribute to NI, he may now not even get a state pension when the time comes.

💯
Sick to the back teeth of those who feel entitled to take take take
Society only works if we all contribute properly

The situation does indeed suck.

If the property is only worth £100k, this is quite insignificant in terms of potential care home costs but likely of huge significance to the OP.

My MIL recently passed away in a nursing home with Parkinson’s and dementia. Her care cost £1800 PER WEEK. So £50,000 (half of the OPs parents property asset) would last a grand total of less than 7 months. MIL went on to live for nearly 5 years: her total care bill was in the region of £468,000. its a joke, expecting personal assets to cover that kind of cost, and just hoovering up everything that parents have scrimped and saved to pass on to their children.

And it’s a totally random lottery: OPs parent with cancer will have their care paid for up to the end. Her less fortunate parent with a different illness, dementia, will not.

OP the best you can do is make sure you have POA for both your parents, and they can change the ownership of their property to tenants in common and their wills to leave 50% each directly to you. As long as your mum has capacity at the time of signing, she can agree to this. If you do this, and your dad dies first then you will inherit his 50% directly. If your mum needs to go into care and your dad is still at home, he can continue to live in the house but they might put a charge on your mums half. If your mum dies first, without going into care, you will inherit her half and only your dads half can be put towards care of he requires it.

You mention that providers in your area are poor, have you tried finding private carers? I recently found a good carer privately online. She charges a fraction of the price of agencies and is extremely experienced. I don't know how you can ring fence your parents house though. I do agree that the longer you can keep them in their own home the better. This must be putting such a strain on you.

This is the real issue, the unfairness of it all. Those who think that buying care is somehow going to be superior are mistaken. It just means they will be subsidising the person sitting next to them who will be paying less as councils have a maximum they will fund.

is there a power of attorney in place? If so then the house can be changed to tenants in common via the attorney

Oh boohoo OP, sell the house like we all have to do.

Can guarantee that my dad didn’t work any less than yours and the house had to get sold. Taxed to the hilt all his working life too if you’re still using that argument. None of us even felt bothered about it, it’s life. Glad we were able to afford somewhere super nice without scrounging off the country.

I'm sorry you are going through this op, this must be very difficult. Some of the replies here are cruel. I have a friend in a similar situation (only child too). When her mum got dementia she was moved to a care home. My friend rented her mum's house out - the money was used to pay part of the care home fee and the remaining costs built up as a debt (or loan from council) that would be paid once the house was sold. My friend's mum now has 'medical care' in the care home and this, as far as I understand though might be wrong, is funded. Hope you find a way forward.

The system is wrong, why should people who have saved to leave their children assets have to pay for care when ppl who have smoked drank and gambled and holidayed same money be paid for by state. Basically the UK system is if you earn and save not spend then you are penalised........
I have experienced this first hand and there is nothing you can do OP but ensure they buy all comfort and spend while they can but ensure it is not at deprivation of assets threshold.

Yes, all self funded places subsidise state funded places in private homes and care is exactly the same..... it is the financial model they survive on.