Question about 'assets' and eligibility for paid-for care services...

[Cornflakemum]

I'm wondering if anyone can advise me, as I have recently taken over Power of Attorney for my 80+ year old father who is developing dementia etc.

He has the flat he lives in (worth about £200K) and about £30,000 in savings as well as getting a few hundred pounds a month from state/occupational pension.

He also has another small property (a 'holiday home' in the UK worth about £95K) which he bought many years ago with the proceeds of his own mother's estate.
This property is 'empty' most of the year. Neither my father or I have been there in the last 8 years however my brother spends a few weeks a year there, and keeps lots of stuff there, as he only has a small flat elsewhere.
I think my Dad should have sold the 2nd home years ago, but there has always been a bit of a family argument about it - my brother always claiming that it is his 'home' (he lived there for a couple of years many years ago) and that my (late) mum supposedly said he 'could have it' (weird - since it wasn't 'hers' to give?)
I get very angry that my Dad is still forking out for the bills, and it is a) hardly ever used, and b) not in a fit state to rent out (due to my brother's stuff)

Anyway, it's clear that Dad is going to need more care in the coming years, and that his savings won't go very far. However because he has this property he won't be eligible for any state-funded care.

My brother is being very difficult, and refuses to discuss selling the 2nd house and since it's full of all his stuff and is 350 miles away I really need him on board. It is also likely to take ages to sell in the current environment.

I don't know what to do, really, I am so worried that Dad will not be able to pay for the care he needs. Should I be trying to transfer ownership of the other property - to whom, and how?
I know that my brother is only allocated a quarter share of my Dad's estate in his will.

The correct thing to do is probably to contact a solicitor for professional advice. If it were me in your position however, I'd be thinking along the lines of going to the property, emptying it out and having a locksmith change all the locks before putting it on the market. I'd write a few warning letters to the brother asking him formally to vacate before I did that - then ignore the inevitable backlash if he doesn't cooperate. He may have an entitlement to 1/4 of your Dad's estate but, as your Dad is very much alive, the deeds are in his name, and he needs the cash now, that's rather immaterial.

I would also consider speaking to an IFA that specialises in long-term care. There are a few ways of funding your father's care and discussing the options with someone that is familiar with this area of planning may be useful.

Thanks for the replies

Cogito - I'd dearly love to just 'deal with it' how you describe, but I really don't want to upset Dad, and there is a risk that my brother will start harrassing him if I start getting tough. He recently started giving my Dad grief about an item of his which was still in the family home when my Dad moved out to a retirement flat. My brother was given the opportunity to clear out anything of his , but claimed he was too busy. Now, 7 years later he started hassling my Dad, accusing him of 'stealing' this item .

It's all very difficult. Because he never sees my Dad, he is in complete denial about how ill he is, and the care he will need.

I've got no advice on the legalities etc, but just wanted to offer some emotional support. I work in dementia care, and it is so hard seeing families struggling to deal with things or even realising that it is for the good of the sufferer and putting aside their own needs and wants.

Perhaps you could engcourage your brother to spend more time with your Dad, to see just how the dementia is affecting him. If he refuses to co-operate, then getting tough is the only option unfortunately. If he starts to hassle your Dad, you could get a restraining order against him if that's what it takes. Ultimately, helping your Dad through what will be a very confusing time for him and making his life as comfortable as possible, is your 1st priority and tough though it sounds, your brother will just have to accept it.

hugs

Is there no way your brother could buy the property if it's so important to him? I'm not sure of the exact loopholes, but isn't there a way he can buy it at slightly under market rate and class that as his inheritance? If he refuses, at least then if he tries to cause problems you can point out that you offered him the house!

Unfortunately, I don't think your brother is going to have much choice here, as even if he was given the house now, it would almost inevitably be regarded as part of your dad's assets, as there are various procedures in place to ensure that someone can't dispose of their assets just to avoid paying for their care. I don't know the mechanics of how that works, but when we looked into my parents' situation, it was clear that assets needed to be disposed of before it was reasonable to believe that the individual might need care. As it is reasonable to believe that your dad does now need care, then I can't see how you could dispose of any of his assets without them falling foul of that particular rule. And as your dad is paying the bills, it would be very hard to argue that the house has already been given to your brother. It seems to me that your brother needs to face reality, however difficult that may be. Good luck.