Paying for care - is Grandad entitled to help?

[DontLoseYourFightKid]

I really hope someone can advise me!

My very elderly Grandad is now in need of a carer, and as I understand it, he would only be entitled to help from the council if his savings were below £23,250.

He currently has £50k, however he has an equity release mortgage, and if he was to pay this off, his savings would be well below the £23,250 threshold.

Is he able to pay off this mortgage and then be entitled to council funded care? We really don’t want him getting into trouble and then owing money!

Any help or advice is greatly appreciated!

Would he not prefer to spent the money he has on a care home of his choosing?

I don't want to use the word 'better'.

I was recently involved in a situation where a lady was about to move into a lovely care home and then through a series of unfortunate events ended up in a council home that she hated instead. I think it's better to have a degree of control of your own destiny if you can.

@MuffinMcLayLikeABundleOfHay Thank you for responding!

We would prefer him to go into a care home but unfortunately Grandad is adamant he wants to stay in his own home and have a carer come to visit him. I’m not sure we have any power over this decision 😔

pay the equity release off and get state funding
People with money get penalised for being responsible
Live the state all your life contribute fuck all you get everything

work and save you get nothing

On the subject of care in the own home. Have a look at employing private carers and don't touch the social care system with a bargepole. As an example, a relative was receiving care via the council in their own home. The social services care provider was charging almost £30 per hour, the council were also taking a precept every single week. The person in question was in receipt of benefit with no savings due to severe disability but preferred to remain in their own rented home. The actual carers were paid a tiny amount.
Another relative has private carers and they charge only around £14 for 45 minutes.

On the subject of money, he could pay off the equity and "lose" the money but the council will want six months bank statements.

Shit isn't it? And so very wrong.

If he's aiming to get state funded carers, the 'state' (local authority) will have to assess him and agree that his needs can only be met by a carer. So get that assessment done first, then the financial assessment.

Surely when or if he pays off his mortgage, the house will need to be sold and
that money goes towards his care.
He can't have a house and not pay for his own care.

He will need a financial assessment from social services if he wants social funded care and the value of his house will be assessed as an asset, that will take him above the threshold so he may end up having to pay for his care. He could apply for attendance allowance which would help. He will also need a care needs assessment from social services before they offer any suggestions. Could he use the 50k savings to employ a private carer, do you know what help he might need.

If he stats at home that doesn't spy. Only if he goes into a care home. He needs somewhere to live.

The 23,250 includes property and savings

Thank you all so much for your replies!

I apologise as I’m completely clueless on this matter!

I didn’t realise that he would have to sell his house. He seemed to think he could stay living in his own house and pay for carers to come and visit him for a couple of hours a day there. And then once his money ran out it would be funded by the council. I’m glad I asked this! So would he then be forced into a care home?

@countrygirl99 Yes that’s what I thought!

but I didn’t realise this @BlanketsBanned thank you.

you can get up to 4 care visits a day funded means tested (23k)and they have to pay top up house doesn’t come into it
only if the go into full time care they steal your house off you

He can keep the house that he lives in without it being counted towards his assets.

www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-homecare/

I’m worried because his money really isn’t going to last very long paying privately for carers. So then he’d be forced out of his house? And forced to sell it?

Ok thank you everyone for clarifying!

Thanks for the link @BlanketsBanned so that confirms it doesn’t take into account the value of your house.

Gosh I find it all very confusing! Sorry everyone 🙈

So it would flag up if he was to pay off his mortgage now, if they’d require 6 months of bank statements..

No, his house isn't taken into account for care in the home. Only if he needs to go into a care home would his house value be taken into account. Call adult social care and request a needs assessment , that's the first step. They would do a financial assessment if he is assessed as needing care.

He could pay off the mortgage and pay privately for carers for 6 months, after which he could apply for state funded care.

They can look back further than 6 months if they want to.

I'm not sure if he can pay back the equity release though. On the surface it looks like he's paying off a debt but equity release is a bit tricky as it doesn't usually get paid back until the beneficiary dies.

If he stays at home they sont take his house into account, if he does move into a carehome the value of his house will be taken into account and he will need to sell his house and pay.

Carers in the home don't come cheap so your grandad could expect to pay between £28-35 per hour. He would probably need to self-fund until his savings dropped below the threshold and then the State would step in. Some local councils have their own carers and others sub-contract to a care agency.

My dad has carers twice a day and as his savings are below the threshold, it's mostly paid for by the State. He contributes £140 per month toward it. The care in his area is contracted out to an agency and they're pretty good. All his carers have been lovely and helpful. They help him get dressed, prepare lunch and some will give him a shave. He's very happy with the support he's received.

If he pays of the equity release you have to be careful this isn't considered deprivation of assets. It is deprivation if you are doing it to avoid care fees, which you are. The council will ask alot of questions about it.

Is he getting all the non means tested benefits? Isn't there a carers allowance which would help?

Definitely not what I'd advise round here (South East). You get what you pay for - council funded care is much less reliable and flexible than privately paid for care. Frankly I'd do more equity release so I could carry on paying for private care.

If you do decide to pay back the equity release get advice just to check it wouldn't count as Deprivation of Assets - morally I don't see how it could but definitely not something you'd want investigated after you'd done it.