Diminishing my Mothers savings.

Lincs_poacher_2

My Mother (who lives with us) has Dementia and will need to live full time in a care home in the next year or two. She has reasonable savings and as we all know this with be quickly eaten up in fees.
I have thought of purchasing a static caravan (with part of her savings) to enable us all to have weekends with a change of scenery. This would benefit all of us and as a side effect will diminish her savings also.
Would a static caravan need to be sold in order to help pay for her care home fees in the future?
Many thanks.

Mojisola

Lincs_poacher wrote: »

My Mother (who lives with us) has Dementia and will need to live full time in a care home in the next year or two. She has reasonable savings and as we all know this with be quickly eaten up in fees.
I have thought of purchasing a static caravan (with part of her savings) to enable us all to have weekends with a change of scenery. This would benefit all of us and as a side effect will diminish her savings also.
Would a static caravan need to be sold in order to help pay for her care home fees in the future?

Why would you want to take away the option of choosing which home your mother spends her last year's in?

Lincs_poacher_2

It wouldn't remove any options, it would still leave Her with around £80,000 but we could all enjoy the benefits in the meantime.

Mojisola

Why would you want to spend your mother's money on the caravan? Half shares I could understand if you're all going to benefit from it.

While your mother is self-funding, no-one will be interested in what else she owns. If she reaches the level where she's entitled to means tested benefits, the value of the caravan would be included in her capital assessment.

As she has dementia, read up on the regulations around paying for care. If she does eventually need care, she may be able to get NHS funding but be prepared for a fight - it isn't given easily.

Lincs_poacher_2

Thanks for the reply.
As you probably know, caring for a dementia sufferer is extremely stressful and we need a break now and again, as apart from anything else, it causes tremendous fluctuations in with my Wifes sugar levels being a diabetic.

I gave up work 31/2 years ago at tremendous cost to our income to become a carer @ £50+ a week. This carers allowance I lose in a few months when I reach 65 therefore if I'd dumped her into a care home straight away, and carried on working, I wouldn't be asking the question.

The idea is to diminish her savings, (with Her approval) so that both She and both my Wife and I could benefit. Fortunately a caravan is a diminishing asset and by the time My Mother reaches the capital assessment stage it would probably be worthless.

I don't hold out much hope regarding NHS funding, but will try, when the time arrives.

azzabazza

My mother was means tested before her care home accepted her. We had to declare all her savings plus an approximate value for her house. Also because 3 members of the family have Power of Attorney we have to be able to account for any of Mum's money we spend. I would be very cautious about spending your Mum's capital.

Have just seen your post above. If your mother has Alzheimer's (as mine does) then you have to be very careful should it be deemed your mother does not have the mental capacity to make financial decisions.

Mojisola

Lincs_poacher wrote: »

Thanks for the reply.
As you probably know, caring for a dementia sufferer is extremely stressful and we need a break now and again, as apart from anything else, it causes tremendous fluctuations in with my Wifes sugar levels being a diabetic.

I gave up work 31/2 years ago at tremendous cost to our income to become a carer @ £50+ a week. This carers allowance I lose in a few months when I reach 65 therefore if I'd dumped her into a care home straight away, and carried on working, I wouldn't be asking the question.

It's very hard for anyone who hasn't done the "job" of caring for a family member to really understand how hard it is - and what a toll it takes as the years add up. It's really important for your own health to get regular breaks. Does your mother go into respite care so that you get time away from her?

Depending on your income after retirement age, you might be entitled to the underlying entitlement to CA. You don't get the full amount but it's still worth claiming.

Lincs_poacher_2

azzabazza wrote: »

Have just seen your post above. If your mother has Alzheimer's (as mine does) then you have to be very careful should it be deemed your mother does not have the mental capacity to make financial decisions.

Thanks for your input.
My Mothers mental capacity (probably like your Mothers) varies from day to day and from morning to evening. Some mornings She is very lucid, but by the evening, can be really argumentative & violent. We would do nothing without Her approval, whilst She is in her best state of mind.

Lincs_poacher_2

Mojisola wrote: »

It's very hard for anyone who hasn't done the "job" of caring for a family member to really understand how hard it is - and what a toll it takes as the years add up. It's really important for your own health to get regular breaks. Does your mother go into respite care so that you get time away from her?

Depending on your income after retirement age, you might be entitled to the underlying entitlement to CA. You don't get the full amount but it's still worth claiming.

This year we have increased respite breaks and it has helped a little. I wasn't being callous when considering using some of my Mothers money to purchase a static caravan, it was just that, I've made a huge financial sacrifices over the last 3 or 4 years and I didn't think it would be asking much for Her to contribute some unwanted savings for the benefit of all.
I can't really see any real reason why we can't go ahead, as I mentioned, unlike a house, it would be a diminishing asset, which would have no value in a few years, but should give some enjoyment to all of us.
My income after retirement age will be limited to a State pension, unlike my Mother who has all sorts of incomes (me jealous, you bet)

troubleinparadise

I see you have Attorneyship for your mother's financial affairs. It is normally the way that any spending from the assets of a Donor that it should be deemed to be "in the Donor's best interests".

As your mother already has a diagnosis of dementia, and you yourself have said that she will need residential care, you will have to be very careful about spending any of her money that will look like deprivation of assets - and I'm afraid that deliberately diminishing her savings will look just like that.

That is, once your mother's money is used up on care home fees, and she is assessed for LA funding, if it is found that a large sum was spent on something that wasn't totally "in her best interests" then it might be seen as depriving her of assets that should be available for funding her care; and I think you might be on shaky ground here by buying a caravan for a person who lives with and relies upon family members for her care full time. And one of the key points is spending her money on a diminishing asset, which will have no value shortly, unlike a house which might be rented out to bring in income, or at least keep its value to be sold to realise those funds and put towards her care fees.

No, it isn't fair, and you yourself, and your entire family, have sacrificed a great deal to care for your mother, and saved the state a good bit of money at the same time.

It may never come to an assessment, residential care may not be necessary, as the future is of course unknown to us and the story could be very different in a year's time. But you might be putting yourself at risk of an accusation of deprivation of assets here - tread carefully.

Mojisola

Lincs_poacher wrote: »

My Mother (who lives with us) has Dementia and will need to live full time in a care home in the next year or two. She has reasonable savings and as we all know this with be quickly eaten up in fees.
I have thought of purchasing a static caravan (with part of her savings) to enable us all to have weekends with a change of scenery. This would benefit all of us and as a side effect will diminish her savings also.
Would a static caravan need to be sold in order to help pay for her care home fees in the future?

Lincs_poacher wrote: »

I wasn't being callous when considering using some of my Mothers money to purchase a static caravan, it was just that, I've made a huge financial sacrifices over the last 3 or 4 years and I didn't think it would be asking much for Her to contribute some unwanted savings for the benefit of all.

I can't really see any real reason why we can't go ahead, as I mentioned, unlike a house, it would be a diminishing asset, which would have no value in a few years, but should give some enjoyment to all of us.

My income after retirement age will be limited to a State pension, unlike my Mother who has all sorts of incomes (me jealous, you bet)

Maybe it's the way you phrased it but I don't understand why you're so keen to reduce her savings.

If she will also use the caravan, she could buy one. If you already have a registered POA, take note of troubleinparadise's comments.

You said your mother lives with you - does she pay her share of the household costs? If not, that's something that should be happening.