"disposing of assets" (in order to reduce care home charges....)

fiscalfreckles

Briefly, my in laws situation is that MIL is in full time residential care, and FIL is living at home with home carer visits.

They are both self funding as their savings are beyond the Local Authority threshold.

We were advised to divide their assets, before MIL went into the home, to protect FIL's share of their savings.

He is resentful of his savings being used to pay for care and is looking for legal ways to spend some of his hard earned cash, without getting into trouble for deprivation of assets.

For example, he would like to give some money to his grandchildren, but one of the examples of things he must not do is "making large gifts to relatives"!

How large do you think they mean? Anyone know what level of sum he could reasonably and legally give?

Or any other useful advice on practical ways to use his savings?

margaretclare

FIL 'is resentful of his assets being used to pay for care' - does he mean his care, or MIL's?

If he's getting home carer visits, I don't understand why he resents this (if in fact this is what he resents). Someone has to pay the home carer's wages, and he's the person getting the care. If I ask someone to come into my home to do work for me I expect that there'll be a bill to be met. And yes, that would come out of my 'hard-earned' money too! We ALL earned our money the hard way!

dzug1

fiscalfreckles wrote: »

For example, he would like to give some money to his grandchildren, but one of the examples of things he must not do is "making large gifts to relatives"!

How large do you think they mean? Anyone know what level of sum he could reasonably and legally give?

Anything more than he has been in the habit of giving already could be viewed with suspicion.

Errata

He is resentful of his savings being used to pay for care and is looking for legal ways to spend some of his hard earned cash, without getting into trouble for deprivation of assets

Some suggestions - he could employ a cleaner and a gardener, he could pay someone to take him shopping and use a taxi to get there and back. He could also use a taxi when visiting his wife. If he needs a new bed or more comfortable furniture or bigger freezer or a tumble dryer, all these would be acceptable purchases as they would help him to stay in his own home with a degree of comfort. Does his house need decorating ? Could he spend a bit more on groceries to ensure good health ? Does he need new clothes ?
HTH

margaretclare

Errata wrote: »

Some suggestions - he could employ a cleaner and a gardener, he could pay someone to take him shopping and use a taxi to get there and back. He could also use a taxi when visiting his wife. If he needs a new bed or more comfortable furniture or bigger freezer or a tumble dryer, all these would be acceptable purchases as they would help him to stay in his own home with a degree of comfort. Does his house need decorating ? Could he spend a bit more on groceries to ensure good health ? Does he need new clothes ?
HTH

These are all very good suggestions.

I find there is never any shortage of 'ways to spend your hard-earned cash!'

Jake'sGran

Is he fit enough to go on holiday? I am not in care but would like to use up some savings and am in poor health and don't think fancy holidays would do anything for me and I cannot get insurance anyway. Some of my friends do most of the things Errata has suggested and if anything happened to my OH I would have to spend on cleaners, gardeners etc. All aspects of any journey I undertook would need assistance e.g. I could not carry a suitcase so would be tipping everyone although I would not mind that. Your Dad could use up a decent slice of his money if he could go somewhere nice by air or take a cruise.

fiscalfreckles

margaretclare wrote: »

FIL 'is resentful of his assets being used to pay for care' - does he mean his care, or MIL's?

If he's getting home carer visits, I don't understand why he resents this (if in fact this is what he resents). Someone has to pay the home carer's wages, and he's the person getting the care. If I ask someone to come into my home to do work for me I expect that there'll be a bill to be met. And yes, that would come out of my 'hard-earned' money too! We ALL earned our money the hard way!

Its more the principle of having to pay (for both himself and his wife) because he has been financially prudent all his life, while people who have not been and have no savings would get their care paid for. But I didn't start this thread to get into that old debate, I'm merely trying to help out someone with one viewpoint.

I think he is upset that he won't have as much left to leave in his will as he had planned.

Errata

FF - I can understand why your FIL feels the way he does. The previous generation to him would have had a free home help and free residential care in the back ward of a general hospital or large psychiatric hospital.
He's been able to be prudent, but many people of his generation were on such low wages they lived in council or private rented accommodation and the only savings they could made were for a couple of weeks holiday each year.
Could he move in with a family member, bearing in mind the minimum care he recieves from his home carer ? Has he, or the family, made sure that his wife's care absolutely cannot be funded through Continuing Care Needs ?
He is to be applauded for his unselfish attitude in wanting to leave his cash to his family, rather than spending it at the betting shop and the pub, but perhaps it would be helpful to point out to him that his parents were perhaps only able to bequeath a few hundreds rather than thousands, so he will be leaving his family better off than perhaps he was when his parents died.

Oldernotwiser

Jake'sGran wrote: »

Your Dad could use up a decent slice of his money if he could go somewhere nice by air or take a cruise.

Expensive exotic holidays may well fall foul of the regulations, fortunately.

Willman_Rodders

If not already purchased, both MIL and FIL should purchase prepaid funeral plans. These are legitimate purchases (I understand from the assessor who is assessing my father presently).

Choose the company carefully and read the small print of the contract though. But these purchases will reduce cash savings.

fiscalfreckles

Willman_Rodders wrote: »

If not already purchased, both MIL and FIL should purchase prepaid funeral plans. These are legitimate purchases (I understand from the assessor who is assessing my father presently).

Choose the company carefully and read the small print of the contract though. But these purchases will reduce cash savings.

Yes, I had thought of this and its a good idea, but I daren't mention it for fear of upsetting him! I'm hoping he will think of that one himself one day...