Disabled mother in law with a house in a care home

paul6316

My mother in law has been living in an extra care residental flat for the last 3 1/2 years and is now coming to the end of her savings. Her care costs approx £2000 a month and her rent is approx £500 a month. She has a house that has been lived in by her son whilst she has been in the flat. If she sells the house (which she wants to do) she will have in excess of £200,000 and will not be eligible for benefits until that capital drops below £23000 or £15000 (approx figures). She would like to give her son and daughter a lump sum each but I believe the council would class that as deprivation of assets. Am I correct?

Would she be able to buy a flat outright with the proceeds of the house sale in the care place she is living and in doing so protect that capital so the son and daughter inherit the flat or will the council still take into account the value of the flat when working out any benefits?

Thanks in advance