I need a little advice on forward planning

maman

Apologies in advance if this is wrong board but I know there are many experts on here on age-related finances.

OH and I have had a big wake up call lately as SIL had a massive stroke and will probably need to go into a nursing home. Now I don't want to do anything illegal but it set us wondering about the best way to organise personal finances in case anything like that happens to either of us in the future.

Currently we have various savings/investments/spending money in accounts in our individual names and if I'm honest probably a bit more in mine:p. This is a historical thing because we both had our own accounts before getting together. What I wanted to know was when paying nursing home fees does this matter? Is everything considered 'ours' or what?

Any advice/push towards website or agency gratefully appreciated. TIA

lucyinthesky

Hi Maman

Very sorry to hear about your circumstances.
I can't give you advice but these guys definitely can. A friend of mine used them recently. They offer independent care home advice and also financial advice.
http://www.grace-care.co.uk/
Good luck and hope it helps.

tocsin

Importantly, other than sorting out investments, have you got a Power of Attorney sorted? Give someone (you trust!) the legal power to manage your affairs if/when you are not able to.

Savvy_Sue

Ideally give that power to two people you trust, rather than just your spouse, then when something happens to one of you, the other doesn't have to panic (and neither does anyone else) about getting a new power set up.

Example: my mum and dad each had one of the 'old' PofAs set up with Eldest Child and Spouse as joint attorneys. Dad has now died, but the Eldest Child can still act on Mum's behalf.

maman

Thanks for the PoA advice, we'll definitely be doing that.

Anyone know about whether all assets are considered shared assets (when deciding nursing home fees for example) regardless of whose name on account? I handle lots of our financial stuff so currently most in my name and I'm not sure whether this is sensible in longer term.

margaretclare

maman wrote: »

Thanks for the PoA advice, we'll definitely be doing that.

Anyone know about whether all assets are considered shared assets (when deciding nursing home fees for example) regardless of whose name on account? I handle lots of our financial stuff so currently most in my name and I'm not sure whether this is sensible in longer term.

No, this is not the case.

A person who goes permanently into a nursing home will have his/her savings/assets assessed with a view to paying the fees. If those assets (excluding the house) are above a certain level then he/she will be expected to pay. The other person won't. If a spouse or partner over 60 or disabled is living in the house then the house value is disregarded.

It makes more sense to keep your savings separate, at least that is my understanding.

maggiem

margaretclare wrote: »

A person who goes permanently into a nursing home will have his/her savings/assets assessed with a view to paying the fees. If those assets (excluding the house) are above a certain level then he/she will be expected to pay. The other person won't. If a spouse or partner over 60 or disabled is living in the house then the house value is disregarded.

Not sure about this but I thought although the house is not taken into consideration if a spouse lives in the house a lien is taken against the property so the debt is eventually repaid. Not sure how this works if tenants in common?

Wish I knew more but sure someone will have the answer,

Maggiem

maman

margaretclare wrote: »

It makes more sense to keep your savings separate, at least that is my understanding.

Thanks margaretclare so, to hedge bets, it would make most sense to have savings/investments about 50:50? That seems logical to me but when has our tax/benefit system ever proved logical:p

I think you're right about the house maggiem. And while it might have a long term effect on inheritance it doesn't bother me (us) as long as we have a roof over our heads.

Anyone with any ideas about where to ask for confirmation of this?

margaretclare

maman wrote: »

Thanks margaretclare so, to hedge bets, it would make most sense to have savings/investments about 50:50? That seems logical to me but when has our tax/benefit system ever proved logical.

Well, for tax purposes is certainly does make sense to keep them separate. Everyone has their own personal tax allowance and everyone has an ISA allowance where savings/investments are free of tax up to a certain level.

The benefits system tends to lump a couple's income together, but in terms of paying for residential care, the person receiving the care and not the spouse is the person expected to pay. This was highlighted to me recently by what happened to the parents of a friend of mine. Mum went into a home, Dad stayed in the matrimonial home. Only when he died and left his whole estate to his wife, still in the home, was any mention made of his savings and the house. Up to then she had paid very little.

maman

margaretclare wrote: »

Well, for tax purposes is certainly does make sense to keep them separate. Everyone has their own personal tax allowance and everyone has an ISA allowance where savings/investments are free of tax up to a certain level.

The benefits system tends to lump a couple's income together, but in terms of paying for residential care, the person receiving the care and not the spouse is the person expected to pay. This was highlighted to me recently by what happened to the parents of a friend of mine. Mum went into a home, Dad stayed in the matrimonial home. Only when he died and left his whole estate to his wife, still in the home, was any mention made of his savings and the house. Up to then she had paid very little.

.
Thanks (again) margaretclare. Fortunately, we're not involved in the benefits system (hence wanting to optimise savings/investments).

In time, I'm sure I'll learn from my BIL how the rules work on residential care. I knew the house was protected for the spouse but wasn't sure about any other assets. Currently SIL is in hospital but sooner or later she'll be in care I'm certain. For them, this has come as a complete shock with finances unequally split for all sorts of historical reasons. Where do you think I might get chapter and verse for my forward planning? Age Concern? CAB?

margaretclare

maman wrote: »

.
Thanks (again) margaretclare. Fortunately, we're not involved in the benefits system (hence wanting to optimise savings/investments).

In time, I'm sure I'll learn from my BIL how the rules work on residential care. I knew the house was protected for the spouse but wasn't sure about any other assets. Currently SIL is in hospital but sooner or later she'll be in care I'm certain. For them, this has come as a complete shock with finances unequally split for all sorts of historical reasons. Where do you think I might get chapter and verse for my forward planning? Age Concern? CAB?

No! These bodies may be good at advising about benefits/rights, those kind of things, but for advanced financial planning you need an Independent Financial Adviser with some background and expertise in this kind of area.

Regarding your SIL, her assets, excluding the house, will be assessed with a view to paying for her care. Not your brother's. Of course, it may be that she actually needs proper nursing and not just care, and there have been thousands if not millions of words written in other threads here on just that topic.