Paying for Care Home Fees

WGG1848

Our mother has just gone into a care home following a stay in hospital following a stroke. She has now been diagnosed with severe dementia. The social worker advised she should go into a care home for her own personal welfware. We understand anything above £23,500 in savings is used to pay for this care. She does not have her own home.
However part of her saving is in a 'With Profits Bond' with the Prudential.
I have seen articles in the past which seem to indicate that this type of asset is not taken into account when her financial assessment is done, is this correct?

monkeyspanner

I'm not sure that this is still the case. I suggest you contact one of the charities operating in this area such as Age uk or www.counselandcare.org.uk to check the current situation. Counsel and care also have a very good fact sheet on paying for care which you can access online.

Mojisola

Contact the Alzheimer's Society - http://alzheimers.org.uk/

If your mother needs care because of dementia, it may be possible to get some of it paid for. It will be a battle but worth fighting.

bertha

There was an article in yesterday's Daily Mail about with-profits bonds. Under the heading 'should you cash in your bonds' it said 'are you likely to require long-tern care soon, such as moving into a nursing home? Money in a with-profits bond should not be taken into account in local authority means testing - as long as the bond wasn't taken out with this in mind.'

The whole article can be read here:
http://www.dailymail.co.uk/money/article-1361925/With-profits-bonds-sold-pensioners-paid-2pc-TEN-years.html

WGG1848

Thank you for your interest and help.
I looked up the article in the Daily Mail and it does seem to indicate that this type investment is disregarded. although the words 'should not' in there is of concern.
Yesterday we found out that via her very helpfull social worker she will being going through a financial check regarding the care home costs, so hopefully it will be sorted out.
The site counselandcare.org.uk was particularly interesting and helpful and we have ordered a booklet from them.
Many Thanks

monkeyspanner

The "should not" probably refers to the possibilty of the council deeming that the investment was a deliberate deprivation of assets. They would probably only think this was the case if it had been taken out fairly recently or at a time when there was a chance a residentially care placement would be required in the near future.

pineapple

Your mother may be entitled to continuing care funding with her care costs. Contact your local Alzheimers Society. But also there is a helpful independent body which gives free advice in these scenarios called CareAware. Sorry no link but google it. Good luck.

Cranny44

Usually the bonds that are part disregarded are with "life" assurance attached and we count the income not the bond in this case - but once it is cashed it is counted in full. However as more and more products are on the market it gets harder to know definitely what should be counted as capital and what should be counted as income, although i would say at least 80% are capital assets.