Deprivation of Capital/Care Home Fees

anmarj

littlemissbossy wrote: »

I have spoken to the DWP and the LA about this and they have both confirmed that it stops. I assume that it stops because they are getting the financial assistance from the LA rather than the DWP.

you are half right, it has stopped because they are getting asstance from the Local Authority towards the care home fees rather than her paying the full fees herself.

If she had been in Scotland she would of lost it anyway as they get free care.

Torry_Quine

anmarj wrote: »

If she had been in Scotland she would of lost it anyway as they get free care.

The amount is not nearly enough though at £145 for social care and £65. People here are still selling homes and using up savings like everywhere else. Costs of an extra £500 - £700 are not unusual so Free care is somewhat of a misnomer. More info here
http://www.seniorsnetwork.co.uk/freecare/

Bellabee

Sloughflint - I've been reading up on annuities, as I'd been unaware of them until I saw your post. They seem to be the only way of ensuring that the money for fees doesn't run out. Unfortunately I haven't been able to get any idea as to how much an annuity might pay, so I'll have to find an Independent Financial Advisor to get some quotes. The care home that I would like Mum to go to has fees of £700 per week and she has income of about £200 per week, so we would be looking for an annuity paying aroung £25,000 pa.

Torry_Quine

I really get confused by the whole concept of having to pay more than is given by the local authority. My relative's money fell to the level of funding by the local authority some time ago now but she has never (or indeed anyone else) been required to pay extra. I spoke to the home manager who has said that they never ask for extra funds or ask anyone to leave other than for health reasons. Is this that strange a situation?

RAS

bellabee

Given your other thread on an EPA, I think you need to be very very careful about any further gifts from your mother's accounts. The EPA, registered or unregistered only allows you to act in your mother's interest. Any transfers of money that benefit someone other than your mother are not allowed.

It specifically allows the attorney to make small gifts, for instance Christmas and birthday presents of a value that she would have made prior to your becoming an attorney. If you have been authorising these gifts, you need to seek legal advice.

Whilst waiting for an EPA to be registered, I was advised by the Court of Protection that they could not even authorise my spending a few hundred pounds on fees which could or could not have allowed me to obtain a higher price for the house.

Bess09

My mother is in a similar situation and she still gets Attendance Allowance, at the higher rate. Check this out, it is not a means tested benefit. Also I think your mother is allowed to give away £ 3,000 in total each year, not £3,000 twice - worth checking perhaps.

Bess09

I have just bought an annuity for my Mum who is nearly 88, has dementia and is is a lovely small residential home near me. It cost £90,000 and provides £14,000 tax free income each year for the rest of her life. It will cover (along with her pension and attendance allowance) all her home fees completely for 6 years, after that we will have to make up a small amount each year - a very small amount - a £129 shortfall in year 7 and so on.
The gamble that both you and the annuity company are taking is 'How long will she live?' -But from opposite points of view. If she lives longer than 6 years, they pay, if less, then her estate has lost the money. But the comfort I have from knowing she is safe and will be well cared for for the rest of her life is huge and the money she has is what she and my Father saved all their lives. It isn't what she wanted to happen, she often said how much she wanted my sister and I to inherit all she had, but this is how things are now and I think I have done the best I can for her.
It has been very difficult trying to decide what to do but now it's done I am glad.

Good luck, Bess.

pollypenny

What a good solution, Bess. I hope your mum is happy.

Again, thanks for not bleating about having to pay and wanting the rest us to pay.

I hope my two will organise things like that for me if necessary.

Bellabee

Bess, it is good to know that you have managed to make arrangements which provide you with peace of mind and give your mother security. I think you're in a very similar situation to ourselves. The amount we have to invest is just slightly higher than yours. Did you shop around for your annuity? I'm going away on Monday, but am making an appointment with an IFO for when I get back. It has taken us nearly 2 years to sell the house, during which time the capital has been ever decreasing. If we'd had the house sale money earlier, (and if I'd known about annuities), we would have had more money with which to buy an annuity. But we are where we are and need to make the best of it.