Paying for care at home

dan.date66

Hi, this is a cross between a paying for care question and IHT advice, so hope it makes sense.

Basic synopsis is this.

Elderly father with severe dementia and associated health problems.
Elderly mother who was caring for him but has herself just had a stroke so needs care herself (how long unknown at this juncture).

They own their own house (approx 400k, owned as joint tenants), but other savings now below £40k as they are spending it on care. Myself and my brother sole beneficiaries.


Presently we are paying privately for care at home through two full time nurses - it allows them to stay together as a couple, and so we see this as the best solution (certainly short term). The money is coming from the parents' own funds managed by POA.

Their savings are diminishing at such a rate (£1,000 per week - they now have just 20k each) it is time for us to contribute personally. Fortunately we are in a position to contribute to their care, so that is not really the issue, it is just how best to go about it and what are the implications.

a) if we pay on an ongoing basis, should this be classed as a loan to the parents to be recouped on eventual sale of the property? Otherwise any payments we make will be a gift for IHT purposes.
b) if we buy their house, does this make things easier or more complicated?
c) For IHT purposes, I have assumed it is better that they leave everything to each other so both exemptions will apply on second death, but is this so if one has to go into a care home?
d) If father would qualify for NHS care (I am looking at other threads as to how difficult this is), would it alter how we should go about the financial provision outlined above.

As I say, we are happy to pay until the estate is exhausted, but just not sure as to what is the best way to go.

McKneff

Just my opinion, but I would have thought it would have been better exhausting the estate money first.

You paying it could be just looked on as that, a gift, if there is no contract formed for you to be paid back.

We do have more informed people on the boards and hopefully some of them wiil be along later to help.

moremore

have a look at age UK website there is very advice on there about care homes.

http://www.ageuk.org.uk/home-and-care/care-homes/

dan.date66

for your answer. Of course, problem is that the "estate" money is tied up in the equity of the house so would mean either dreaded equity release (don't see the point when we have the cash) or us purchasing the house and I'm not sure if that is sensible. As you say, we'll see if any of the brains are out there.....

slopemaster

I'm not any sort of expert, but I would have thought that if the estate would be over the IHT limit, the best would be for you to pay from your own money, but set it up as a formal loan - perhaps secured on the house - to be repaid from the estate.
But you would need expert advice I think.

slopemaster

PS Maybe try asking on the tax board; they're pretty knowledgable over there.

Savvy_Sue

slopemaster wrote: »

PS Maybe try asking on the tax board; they're pretty knowledgable over there.

New thread now here, with some good answers already, I'll close this one.