Which way now?

k66

Hi Mother in law is a frail 92 year old who can no longer live at home so whilst in respite together we applied for a social housing trust extra care home, she has visited one and we are hoping to sign a tenancy agreement soon. She will have the care and support that she currently needs.

This is the point at which I ask for help - she has savings below £16,000 and her house is worth about £70,000. She has the lower rate attendance allowance, pension credit and up until she was admitted into hospital a couple of weeks age made a weekly contribution of about £45 towards her care fees.
We are expecting the rent to be around £500 pm, personal care to be about £120 pm and monthly charges about £200.
We could, with a little work, prepare her house to rent out and this should bring in around £500 pm, this would obviously increase her income but her outgoings would also increase.
Should we consider self funding? If her condition deteriorates her next stage of care would be a nursing home.
Thanks in advance.

mad_spaniel

I doubt very much that with a capital asset of £70,000 she would be entitled to any help towards care costs. The most she could hope for is is a charge on the property, so any subsidy is reclaimed once her house is sold. I doubt she would be entitled to any means tested benefits because of capital/ income from tenants. That leaves Attendance allowance. If she can show she needs help in connection with bodily functions, 2 or more times per night or for 20 minutes at night or another person to be awake at night to avoid substantial danger to herself or others , she might get the higher rate Attendance Allowance. Write in detailing how her care needs have increased since her initial claim. In what way is she vulnerable at night/ unable to cope/ at risk.

k66

Am I correct in thinking that she would continue to receive her benefits inc state pension, attendance allowance and we could agree to pay the extra costs and retain the home?

Newly_retired

If she is self-funding she keeps her AA, but loses it if council funded.