What can i spend my mum's money on?

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WGG1848 wrote: »

All the money was in her name. Trusts were discussed in the past, but not affected as being 'too complicated' as we remember her saying.
We are at present applying to the court of protection for P. of A.
The solicitor explained that we can administer her affairs 'just as she would do'. This clearly does not apply to spending her money for her sons benefit as this would be classed as avoidance and the authority could claw it back.
Her son gets most benefits but we are having his situation checked.
Social services are in touch and are aware of the situation.
MIL's health is at present OK but is very clearly confused. She recognises us but we cannot hold any conversation with her. The Care home is excellent, a real home from home and she appears very content.
One other thought comes to mind regarding the £23,500 that gets left. What can we do with it? If we invest it will any interest earned have to be paid to the local authority? or can we buy premium bonds and put them in trust for her son?

For care home financial assessments savings between the lower savings limit of £23250 and £14250 are assessed as having a notional tariff income. Every £250 in savings between these two figures is assumed to have a "tariff income" of £1 per week and this reduces the amount the council will contribute. So the maximum tariff income would be £36 per week.

Where exactly the government thinks you can earn £52 per year on £250 I don't know. I am unsure how the financial assessment takes into account the ongoing reduction in savings due to the tariff income. Assuming no interest on the savings, every 7 weeks the tariff income will reduce savings by a £250 band so the tariff income should reduce by £1. Over the course of a year this could reduce the appropriate tariff income by £7 per week.