Cash savings and bennefits claims?

dementia

Hello. My mother has Alzheimer's disease, and has recenltly broken her hip, and is as we speak in hospital. To get her back into her own house we are going to have to put a care package in place, care workers calling 4 times a day, etc. Cost is going to be £300.00 ish a week.

I have recently become her right of attorney, and have found she has around £50,000 in savings ISA's , etc, which I believe means she will have to self fund her care. I have been told that the cut of point is £20,000 savings.

Is there a way I can move money from her accounts to get below the £20,000 level? Can I put into trust for Grandchildren, give her children a share, etc, etc.

She is very upset that her savings which she wanted to leave to her "family" is going to be "frittered" away. Especially seeing as; if she had saved nothing over the years, the care would be provided free.

And advise will be apreciated.

welshmoneylover

But the money isn't going to be frittered away is it?

It's going to pay for her care

healy

dementia wrote: »

Hello. My mother has Alzheimer's disease, and has recenltly broken her hip, and is as we speak in hospital. To get her back into her own house we are going to have to put a care package in place, care workers calling 4 times a day, etc. Cost is going to be £300.00 ish a week.

I have recently become her right of attorney, and have found she has around £50,000 in savings ISA's , etc, which I believe means she will have to self fund her care. I have been told that the cut of point is £20,000 savings.

Is there a way I can move money from her accounts to get below the £20,000 level? Can I put into trust for Grandchildren, give her children a share, etc, etc.

She is very upset that her savings which she wanted to leave to her "family" is going to be "frittered" away. Especially seeing as; if she had saved nothing over the years, the care would be provided free.

And advise will be apreciated.

No there is nothing you can do. If you do pass on the the money it will be classed as deprivation of capital.

She will still have the £20,000 at the end.

seven-day-weekend

It's hard for some people to have to spend their hard-earned cash in this way I know, but there is not a lot you can do as moving money now will be seen as deliberate deprivation of capital and she will be treated as if she still had the money.

The money will be going towards her care, surely this is what everyone would want, she can have an element of choice which she wouldn't have if she had to rely on the state.

And she will still have £20k, which she would not have if she had not bothered saving

dementia

" The money will be going towards her care, surely this is what everyone would want, "

It is certainly what I want, But not what she wants. She wants the money to go to her "family" And sees this as just another case of her being penalised for working all of her life, buying a home and saving her money.

What if she spent the money on her house, say built a conservatory?

fairydiamond

They can't stop her spending her money to get it below £20,000. She could buy a conservatory if she wants. As long as the money is spoken for with receipts, then its fine. £30,000 can't just disappear if you get what I mean.

There is a set amount she can give to you and any grandchildren as a gift, not sure of the amount. I think it is £1,000 a year for grandchildren. I think. Not sure.

seven-day-weekend

If it is looked upon as 'normal' expenditure, it may not be classed as deleiberate deprivation. For example, buying a specially-adapted car, making necessary adaptations and repairs to her house, (which might include an extension so that she has facilities downstairs) even taking a modest holiday could come into this category.

If however it is deemed that she has reduced her capital solely in order to gain State Benefits or aid, then it will be classed as deliberate deprivation and she will still not get the Benenfits or aid.

However, no-one can say for certain, it depends upon the decision-makers at the time.

I agree, it is a shame when people see their life savings not go where they wanted them to, but on the other hand I suppose we can't really expect the state to pay when we have the money.

It might be worthwhile seeking the help of the CAB to clarify.

chopperharris

Sod the inheritance good on you , if you already have some bricks in the pot then use the savings to supplement the care.If you dont have any bricks what does it matter , if shes planning on leaving which is a very small amount to grandkids to spend rather than save as she did then convince her otherwise , parents should leave inheritence to children not childrens children imo.I dont think any of my grandparents , my parents grandparents or thiers left anything to grandchildren.

Its hard with family as the loved one starts to go ever so slowly , care being supplied by the state is base only.Supplementing care helps the loved ones and thier children lives now rather than give a small financial benefit later.

It may not be equally dispersed between the persons children , if divided though grandchildren one side of the family may actually fair better than another for having more children or penalised economically for not having any perhaps for no fault of their own.

Our will is set for our kids , its up to them to divide their "share" as they see fit or leave their future kids an inheritance or not.If there is No living kids of ours to split equally between then it goes to a dementia charity....works for us.

Snakeeyes21

it wouldnt matter if she spends it on her house, if she owns it she may be forced to sell it to pay for her care.
its not nice but if theres the funds avaliable to fund her care it has to be used

dementia

At what point is her House at risk?

Surely once she has used up any funds over the £2,000 limit her care becomes the responcibility of the state.

Teahfc

I am so sorry to hear of Mother's Alzheimer's disease. A 'friend' of mine her Mother also was in the same situation as your Mother and had what she had though was a little nest egg to assist her family in years to come turned out she was considered too wealthy for help (less than £50k) and she spent some of the money on her house ..new kitchen, new bathroom, new conservatory, the most comfortable bed etc in order to get to the threshhold where she could claim some help.
There are many who argue why should someone with money not support themselves but there are those that say what is the point of saving if you get sick surely you should recieve some assistance from the state.
The advice that my friend got to increase the value of heir house came from their solicitor so it was advice that was lawful.
I wish your Mother and your family all the best and hope that your Mother does not get too worried over this.