care Home fees, can I retain the family bungalow

Pilsthedoeboy wrote: »

My Mum owns 50% of her Bungalow, the other half is owned by my son as trustees (following the death of my father a few years ago) and the trust allows my mum to live in the property while she can and wishes to. I used to live with my mum, moved in with her when I became a Widower 3 years ago, the set up helped both of us, I have a troublesome hip replacement (in receipt of PIP) so living in a bungalow with no stairs was a real help. However, I met a new partner a couple of years ago and moved out of Mums bungalow to share my new partners home, a house - we married 3 months ago. Unfortunately mum had a nasty fall at the start of 2018 and it looks like she will have to go into a care home. The question I have is as follows: my wife and I would very much like to take over residing in Mums bungalow, a lot of my things are still there and in place and this will help my failing hip replacement which at 58 I’m not keen to have revised just yet, the outcome of hip revision surgery might not be very good at all. I notice in the rules that a disabled relative can still live in the family home and it is thereby disregarded in any means test for care Home fees. I’ve also read somewhere that where the relative is not currently living in the property there has to be intent demonstrated for this to happen. Anyone who can give any guideance regarding this, it will be very welcome - thank you.

The disregard you refer to is aimed at protecting family members who share the same home as the person requiring residential care. As this link states:
"The value of your home must not be taken into consideration if any of the following people lived there as their main or only home before your move to a care home, and continue to live there:
your spouse, civil partner or partner
a close relative who has a disability or is over 60. This is known as a mandatory property disregard."

As you have not lived in the property for some time, and it is not your main home, the disregard will not apply in your circumstances. The 50% of the property owned by your mother will be included in the means test.

As the trust owns the other 50% it will not form part of mum's assets. I am no trust expert but from the little info you provide it seems likely that a trust wind-up event will be catalysed when your mother no longer lives in the house and the trust will be terminated. If this is the case, and unless you are able to buy the house at 100% of market value, the house will need to be sold in order that your son can receive his 50% beneficial interest in the property, and in order that your mother's share is available to fund her care.

The difference between care home options available for self-funders and those funded by the state is now stark and becoming starker, I'm sure you wish to act in mum's best interests and her interest will be best served by ensuring that her money is available to fund the best possible care.

I don't mean to sound rude but the way your post is phrased it appears that you wish to deprive your mother of her cash (and therefore the best care) and your son of his inheritance, and impose the cost of her care on the taxpayer, in order that you can live in a house in which you have zero beneficial or financial interest. Surely that isn't your intention, is it?

Do you have a POA? If not & she still can (has capacity) then it can be done on line for £82 otherwise the LA may take over her affairs & charge her for it.

The trouble is that a long stay in hospital after a certain age can make even the remotest signs of dementia escalate. It seems to be caused by a combination of dehydration & lack of stimulus (basically boredom) & not doing anything for yourself. If she needs a care home then she should be able to get the higher level of attendance allowance.

Look at local care homes NOW before she is discharged from hospital. The most expensive are not necessarily the best and neither are the cheapest necessarily the worst. Look out for the odour as you walk in the door & if they take LA paid residents then check how much more you have to pay to make up the LA contibution short fall. The carers working there have no idea who is self funded & who is LA funded (other than guesswork from the number of visitors) so any rubbish by a manager that says otherwise should be ignored.

The most expensive home we visited (by appt) had my sister heaving & it wasn't from any smell of bleach! When you think you have chosen a home visit again without an appt. Check the CQC report on the home.

The whole thing is a massive learning experience!

Along with several years of visiting it did teach us both one thing & that is that we are not going in one! My sister already has the drugs which will prevent that from happening.

Pilsthedoeboy wrote: »

Many thanks for your reply, its actually my son and I who are joint trustees and I am the sole beneficiary of the trust when my Mum passes, Im also the sole beneficiary of Mums will. No way do I want to deprive mum of the best care possible, but nor do I wish to just hand over half of the familys main asset which has been in the family for very many years. Ultimately, I will do whatever is best for my mum, irrespective of the financial consequences.

So, you will become a trust and will beneficiary after your mum dies. But your mum hasn't died. If you are currently a trustee, but not a beneficiary, then you will be aware that the law regarding trustees is explicit. You must act only in the interests of the trust beneficiaries, and according to the trust rules, and any attempt to reap personal benefit from the trust will be viewed as a serious breach.

I realise that many people take the view that it's unfair that a much-loved family home should be sacrificed in these circumstances, but the bottom line is that the property is 50% mum's asset.

Whether any one person will require residential care is a lottery and, inevitably, many homeowners who do so must use their property to fund their care. Why should taxpayers (many of whom have foregone their inheritance under similar circumstances as you) fund your mother's care in order to protect your inheritance? Do you consider that reasonable?

It's my view that it's high time that people gave-up this sense of entitlement to their parents' home. It's your mother's asset and if she needs it to ensure that she has the best possible quality of life in her last years then so be it. if you focus more on your mother's needs and less on your own then I believe that you will reconcile to the loss of your family home. That has been my experience and also the experience of many others on this site.