What can i spend my mum's money on?

imsi

My mother is now in a nursing home and we are in the process of selling her home to pay for it when her savings run out. Then the proceeds of her house sale will be used to pay for her care.
When her assets are down to £21000, I believe her care will be paid for but any spending she does in the meantime must not be to deliberately to reduce the assets.

I have power of attorney, insuring for her care is too expensive, but she is understandably upset that it looks like she will have little left to leave to her children.

What can she do to reduce her assets that is legal(ish)? I've heard a prepaid funeral is acceptable but gifts to relatives must be in line with what had previously been given.
Can she buy large amounts of lottery tickets etc.?

Any advice welcome or should I go to moneyspendingexpert.com

Rob

monkeyspanner

As a guide, when the council assist with care home funding the first £20 approximately of weekly income is not assessed. This weekly allowance can presumeably be spent on anything the resident desires. No doubt you are already spending in excess of this.

Is your Mum claiming Attendance allowance? AA is non means tested and payable whilst the care home resident is self funding. Have you considered claiming NHS funded continuing healthcare (CHC) this is payable if the residents needs are primarily medical and if granted would fund the fees?

Have you considered asking the council for a deferred fees arrangement if you would prefer to keep the house or are having difficulty selling?

pollypenny

Taking out a pre-paid funeral plan , with her agreement sounds good.

Claim attendance allowance, but otherwise be grateful that you have control over where your mum stays and pay her way.

Please don't expect the rest of us to pay, through our taxed pensions, so that you can inherit.

McKneff

What can she do to reduce her assets that is legal(ish)?

It has to be legal, ish doesnt come into it.

You are asking the very people who would be funding her care for help as to how defraud them selves.

Oldernotwiser

McKneff wrote: »

What can she do to reduce her assets that is legal(ish)?

It has to be legal, ish doesnt come into it.

You are asking the very people who would be funding her care for help as to how defraud them selves.

I've been wanting to say this myself on several threads and you've worded it really well.

It's a bit like a burglar asking where you hide your keys!

Errata

Pre-paid funeral plan is sensible, usual amount of money spent on gifts is reasonable, an Attorney gambling with the appointee's money is not to be recommended.

liam8282

imsi wrote: »

My mother is now in a nursing home and we are in the process of selling her home to pay for it when her savings run out. Then the proceeds of her house sale will be used to pay for her care.
When her assets are down to £21000, I believe her care will be paid for but any spending she does in the meantime must not be to deliberately to reduce the assets.

So your selling her home and want to get her assets down to £21k without it looking like your reducing her assets. :rotfl:

imsi wrote: »

I have power of attorney, insuring for her care is too expensive, but she is understandably upset that it looks like she will have little left to leave to her children.

Disgusting, insuring for your mothers care is too expensive! (even though you are selling her house and trying to reduce her assets!)

Looks like you are the one who is upset about what will be left, rather than your mother.

If you want her cash and don't want to pay for her care, take her out of the home and care for her yourself!

imsi wrote: »

What can she do to reduce her assets that is legal(ish)? I've heard a prepaid funeral is acceptable but gifts to relatives must be in line with what had previously been given.
Can she buy large amounts of lottery tickets etc.?

Any advice welcome or should I go to moneyspendingexpert.com

Rob

That is going to be one big funeral if you are going to get the assets reduced from the sale of a house down to £21k!

Biggles

There is a better way, Rob. Er, and it's legal....

While you are selling the house, look into buying an Immediate Care Needs Annuity from the proceeds. Start with www.nhfa.co.uk for information.

An IFA will get a price from one of the firms in this market (I think there are just three) and you pay a lump sum, the amount of which will depend, mincing no words, on how long they think your Mum will live. They then pay the care home (the proceeds are tax-free if they go direct to the home) for the rest of her life and you, as attorney, invest the proceeds (in order that you will be able to cover any shortfall as prices increase over the years). When she pops her clogs, her executors will distribute the remainder.

birkee

Only one sensible suggestion...... take her out of the care home.
Otherwise the assets are going anyway, what difference will the 'how' make?

monkeyspanner

I think some posters should remember that if the OP's mum has a house that is because she has used her "taxed" income to buy it. If she had chosen to spend her earnings and not save or buy a property we (the taxpayer) would be funding her care right now. The OP has a legal responsibility as her POA to look after her finances and before you jump on me that does not mean I believe acting the wrong side of the law or squandering assets on the lottery is right or agood idea.

Errata

monkeyspanner wrote: »

I think some posters should remember that if the OP's mum has a house that is because she has used her "taxed" income to buy it.

That's a fair point. It's also worth remembering that people in their late '60s onwards could well have bought their house for just a few thousand quid and watched it increase in value beyond their wildest dreams or expectations.
For example: a house in West London in 1967 for £4k now worth £200k. It belongs to my relative.