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Original poster

Financial assistance for pensioner parent

53 replies

PervyMuskrat · 06/10/2023 20:05

My Mum recently died and so we’ve been getting my Dad’s budget sorted now that there’s just his state pension coming in. He could manage on that (just about) if he didn’t have a mortgage still to pay (he is early 70s and has another 3.5 years left on the mortgage) so he is short about £500 per month.

I’ve tried applying for pension credit for him but at £244 income per week, he is over the minimum. There’s no possibility of downsizing (it’s a small house, he’s lived there 50 years, there’s family on the doorstep and the house needs a lot of work). He was also my mum’s carer for a long while and is grieving so the house is also very important symbolically to him.

I am lucky enough to earn enough to pay his mortgage as well as mine at present but it does put additional financial pressure on me and if I lose my job (might be a possibility in the next 12 months), he’s screwed.

Are there any other benefits he could get? He’s physically capable of looking after himself in spite of limited mobility so attendance allowance isn’t applicable.

TIA

OP posts:
Original poster
PervyMuskrat · 11/10/2023 23:40

Ionapussy · 10/10/2023 17:35

Equity release seems to be the obvious solution. What will your dad do in the future if he can only just manage on his state pension when he has a house that needs a lot of work?? What if the roof has a leak/window breaks, how will he afford to repair it? New appliances? New car?

He could release a larger proportion than what he owes on the mortgage and make improvements to the house to make his life more comfortable.

State pension is fine if you're in social housing and the local authority make repairs but it isn't ideal when someone is a home owner.

(I don't work for an equity release company BTW!)

Honestly, then I’ll pay for it if he needs it. I have much greater borrowing power (I have a decent amount of equity in my own house and also access to readily available credit). I can’t emphasise enough how psychologically important it is for him (and me tbh, it’s my childhood home) to be finally mortgage free and for no one else to have a vested interest in the house. If the house becomes too much for him to manage, then we’ll look at downsizing or moving closer to me but hopefully we can get a couple of years where he can enjoy his garden and having other family members nearby.

OP posts:
Original poster
PervyMuskrat · 11/10/2023 23:42

LadyLapsang · 09/10/2023 23:29

Hi @PervyMuskrat perhaps get a formal loan agreement drawn up for the money you are giving your dad so that if he deteriorates and has to move into a nursing home, you will get back your money before the house has to be sold for care. Also, the debts will be taken from his estate before probate which may be important for inheritance tax.

Thank you, that is a very good idea

The house is way below the level of inheritance tax and will probably need to be sold for care fees in the future but making a formal loan agreement sounds logical.

OP posts:
DaphneduM · 16/10/2023 10:20

You sound a lovely daughter. Your Dad is very lucky to have you looking after his interests in such an active and caring manner. So sorry about your Mum.

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