MIL gave is some money but is possibly going into a care home.

[JumpingDizzy]

Mil gave dh and I a large sum of money when she sold her house. She moved into rented to be nearer family.
I was dubious at time as she's in her late 80s. For all we would love to see her end her days at home this is rarely the case. My dm more or less did but died in hospital. But she had support at home. Dh and I and mil's other close family all still work.
Mil has been having respite in a local care home. She was reluctant at first but is now settling in. It's fantastic. Staff are great which is the main thing. There's lots of activities and mil has made friends.
I've said to dh I think she'd be better off living there if she's up for it. It's much safer,she's eating regular, she's enjoying the activities and entertainment.
We know we'll have to give the money back she's given us. She still has over 100k in the bank. But once it gets to a certain amount they'll be looking for this. It's a shame as she'd be gutted if she knew we'll lose the money. We'd never tell her though. It was towards a house move to a better area which we're in the process of doing. We'll probably have to stop now though.
Has anyone experienced this? We're not sure what happens tbh.

Edited for spelling

Actually better article here with what’s in labour manifesto
https://www.communitycare.co.uk/2023/11/13/cap-on-care-costs-significant-risks-around-plan-to-deliver-delayed-reform-by-2025-says-watchdog/

I work in this area and our local authority are getting really hot on this now. 10-20 years ago they let it go, now they can't afford to.

Have you looked at what sort of annuity you could get for her £100k? Presumably she has a pension, she should be entitled to Attendance Allowance if she is self funding. In her late 80s the return on a care annuity might be enough? Take financial advice.

So it is a timing thing with the money? As in you could treat the £50k as a loan, do what you need to with the house, and then pay it back?

Given your MIL has around 2 years of fees in the bank to see her through initially and not yet full time in a home, if you will be in a position to pay up in a year or two if needed, I'd be tempted to crack on, on the assumption it's will likely end up being a loan not a gift.

A lot of people have no choice

Yes that's a good point. We'd definitely have the 50k by then. Plus she won't be upset at us not moving. As long as she's happy we're happy. She really is so wonderful. We take her away still at the moment. It's getting more difficult though but she loves it.

Thanks.

I have experience of caring for a wonderful MIL, she had no assets but another family member has been in a slightly more similar position to your financial situation.

I think, in your position (as I understand it) if it was affordable I would look for a home like one of my relatives which is a 4 bed converted bungalow and has a bathroom and one bedroom downstairs. This would mean MIL could stay with me for short periods but also, if needed, for longer.

This might mean your MILs current pattern of time in her rented home and periods of respite could continue for longer. She would be happy you had moved, she wouldn't go into full time care home immediately, you might even go through a stage of giving up rented home and moving between you and care home.

Only you know if this sounds ridiculous. If your home had been used or intended to be used to support MIL if needed I believe there are slightly different rules about pushing you to sell plus, as you say, you'd have savings available.

One reason I'm suggesting thinking about it this way is because my MIL, having been given 2 years prognosis, survived for nearly 10. Most of that time she remained in her rented home with us or residential carers alternating. HCPs were sometimes bemused that we wanted to do it but she was wonderful and I don't regret it at all.

just reading the article above re self funding limits, if the limit goes up from 23000 to 100000 in 2025 you would be fine. So they might count the 50k but it would be part of the 100k allowed.
Even if it didn’t go up it would be 27000 you’d have to find towards care not 50000 as everyone is entitled to keep 23k of their money. Obviously this would be after her other money was exhausted

I realise that. But the OP does have a choice.

You're deluded if you think someone with £100k is getting free care.

Is that to me? I never said that.

Mil is on CHC but I don't think that'll make any difference?

I think we'll probably go ahead with the move. Ours should sell quickly. We'll keep the 50k after this aside.

Your MIL is getting continuing health care funding?

Yes

That changes absolutely everything OP! Did they not tell you that CHC is not means tested ie it means all her health and social care is free

www.nhs.uk/conditions/social-care-and-support-guide/money-work-and-benefits/nhs-continuing-healthcare/

It’s a gift - legally and in intent. Do NOT give back. Your only issue will be having to pay tax on that if she dies within 7 years of gifting

She has money in the bank which will cover care home. After that the state will cover costs. And as lifelong tax payers I suggest you do that rather than feel any moral burden.

No we did wonder.

The average length of stay in a care home is only about 18 months. Given that there is a possibility she will die before the cash she has runs out I would make the move and make her happy. Then you claim whatever financial support you can for her and also put aside whatever money you can to support her care if her money runs out. Even if she didnt get CHC she'd be entitled to some sort of benefit that would make her money go further.

CHC is completely funded , regardless of your financial situation.

Thank you

Just to be aware that CHC is not guaranteed forever. It's supposed to be reviewed yearly (but doesn't always happen that quick) but sometimes a care home will let us know if they think someone may not be eligible anymore to trigger a review (especially if they think they'll get more money if the person is self funding).

Thanks. She's worse now than when first assessed.

@Mumofteenandtween

£100k is enough for nearly 2 years of fees on average.

Elderly relative is paying £1400 a week, add to that the cost of toiletries, clothes, haircuts, podiatry etc it doesn't stretch too far

Exactly. There is no limit on the length of time the local authority can go back to see where money has gone. When you run out of money to pay for your own care and have to fill out a financial assessment form it specifically asks on that form whether you have owned a house, so they will know in this case that she has and can look at where that money went. I guess the issue is whether she could have reasonably forseen that she might need to pay for care at that point.

The 7 year rule that several people have mentioned is for inheritance tax purposes. There is no cut off for deprivation of assets to avoid care home fees.