Do we have to sell the house?

Crater

Seeking advice on if there is any (legal!) way of preserving our Mum's house as she gets older and needs care.

She will be self-funding as she has some savings and a reasonably good pension.

I have heard that there are circumstances where someone in her position can get funding, at least until end of life, and that these may vary from local authority to local authority.

A legal executive friend mentioned "gifting" some years ago, but looking into that (not very far), it seems that someone living in a house they have given to someone else, must pay a market rent, and she could not in fact afford a market rent on the house she owns, so we did not go further along that route.

I understand that the only other usual way of keeping a house and getting funding is if a partner (she is a widow) or other dependent family member lives there. She lives by herself now.

If she is to move anywhere else, self funded, she will have to sell the house anyway, and whatever capital she has over after moving will become her savings which she will have to live off. (She lives comfortably off her pension but it won't stretch by itself if she needs care, or has to pay ground rent on a flat, for example.)

Does anyone have any information on this subject?

Savvy_Sue

Just a question, but if she cannot live in her house because she needs care, why does she need to keep it?

mountainofdebt

Savvy_Sue wrote: »

Just a question, but if she cannot live in her house because she needs care, why does she need to keep it?

I'll give you 2 guesses but you'll only need one

sulphate

In a word no, otherwise many other people would be doing the same thing. At the moment many many people have to sell their homes to pay for care.

Another option would be to rent the house out, if that would bring in some funds?

troubleinparadise

This Age UK information outlines what happens should someone need care, but happens to own their own house:

http://www.ageuk.org.uk/home-and-care/care-homes/the-means-test-and-your-property/

This section explains how you might get your care fully paid for by the NHS if you meet the criteria:

http://www.ageuk.org.uk/health-wellbeing/doctors-hospitals/nhs-continuing-healthcare-and-nhs-funded-nursing-care/

Section 7 of the CRAG (Charging for Residential Accomodation Guide) lists the Treatment of Property guidelines:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301250/CRAG_34_April_2014.pdf

Have a read through that lot and see if any of it applies to your Mum. Bear in mind that not everyone needs residential care; it may be perfectly possible for her to stay in her own home and receive care there, or for family to organise and provide care themselves thus avoiding residential care for her should the need arise.

PasturesNew

Care is worth every penny .....

By the time you've got the house money and put it in the bank, then getting interest on it. Add in the pensions etc .... and then deduct the amount for bills etc she'd have to pay on her own house (including a gardener, meals on wheels, socialisation/day care centres, house maintenance) .... the difference in a lot of instances is negligible. Certainly worth paying it just for the additional benefits of having 24/7 eyes watching over her and the wall to wall friends to sit and stare out of the window with, instead of being home, alone, in the dark, in a storm ... or with strangers knocking on the door, or phoning up.

Priceless.

hardpressed

If the family can pay her care home fees then you won't have to sell the house.

74jax

From the other side of the coin. My mum had a stroke 5 years into her retirement, my dad has terminal cancer at 80. They own there home and have savings, which they saved to be able to spend traveling in their retirement together.

They now both need care, they refuse to move to be with me, and won't go in a home. Dad is independent but mum can't look after herself. Their money allows them to choose their care package, not just be given the basics.

Dad was in hospital for many months and mum had no choice but to go in to respite. The difference between self funded and not was astonishing.

If your mum is asking this question I was would encourage her to use her savings wisely, build memories for the whole family, days out weekend away, and to be thankful she has savings to pay for a good level of care.

Dad used to say he worked hard all his life and didn't want to give it to the government, but he has changed, he now has a much easier retirement with many helpers, after we spoke to him and told him we would be very disappointed if he left an inheritance when he could have used it to make his last year's on earth so much easier, he understood.

Crater

Thank you for the constructive suggestions, particularly troubleinparadise At present she doesn't need a care home and doesn't want one - she wants to be able to organise her own timetable etc, as she has been used to doing all her life. We really don't know how long she will be able to, but she is now talking seriously about moving somewhere where there is company "on site", which means a sheltered flat. We are looking at this - to the point where she says she will ask an estate agent to come and value her house, which is a step forward. I am trying to inform myself about other alternatives simply as a "personal duty of care" towards the family. Once her house is sold, her remaining capital will go into savings, which probably won't hold their value as well as the house would - but that is life. I know that is the way that most families have to go. I'm over 60 now and I find all this jolly intimidating, but it must be done. (She always used to talk about the long term, but as soon as her memory started becoming a bit shaky, she hates looking at the long term - I can't say I blame her! But we have to do it now.) Other questions I need to find out about: Is the "part exchange" arrangement offered by many Sheltered Flat companies actually a good and helpful thing? Or something to be avoided? And are the "care home cost annuities" offered by companies, a good thing, or just as dodgy as pension annuities are said to be now? So much to learn about ...

getmore4less

Is there any chance you could find somewhere for multigenerational living that would suit you into your latter years as well.

Crater

74jax wrote: »

Dad used to say he worked hard all his life and didn't want to give it to the government, but he has changed, he now has a much easier retirement with many helpers, after we spoke to him and told him we would be very disappointed if he left an inheritance when he could have used it to make his last year's on earth so much easier, he understood.

I think this is the course we are going to have to take. She always wanted to leave something to my husband, who has (mild but persistent) lifelong health issues and she thinks he will get worse as he gets older (this may not in fact be the case) BUT she needs quality of life now, end of story. I just feel that we need to know what we are doing before she commits to a course of action (and she is dithering a bit - she won't be impressed if we encourage her to make what she later thinks is a bad decision! But friends tell me this just goes with the territory.)