Care home fees

geoffken

I know and understand all the arguments re taxpayers etc but need advice for neighbour and maybe us in 10 years.
Couple live in bungalow worth £300,000.
Husband has been in care for 2 years (dementia so may live for a long time) and I understand charge on house for his share.
Wife now needs to move to flat approx £120,000 as bungalow and gardens too big.
What will she be able to keep /use i.e. will council take the £150,000 share leaving her with 150,000 or will she be able to take all £300,000 with charge on his £150,000.
If bungalow in joint names in case she dies first what happens.
I realise may need legal advice bur wondered if anybody else has had same problem

Cheeky_Monkey

I imagine the Council will take the husband's share as soon as the house is sold.

If the wife plans on buying a flat for £120k, she will still have a tidy sum left over so there shouldn't be a problem.

Mojisola

geoffken wrote: »

I know and understand all the arguments re taxpayers etc but need advice for neighbour and maybe us in 10 years.
Couple live in bungalow worth £300,000.
Husband has been in care for 2 years (dementia so may live for a long time) and I understand charge on house for his share.
Wife now needs to move to flat approx £120,000 as bungalow and gardens too big.
What will she be able to keep /use i.e. will council take the £150,000 share leaving her with 150,000 or will she be able to take all £300,000 with charge on his £150,000.
If bungalow in joint names in case she dies first what happens.
I realise may need legal advice bur wondered if anybody else has had same problem

There shouldn't be a charge on the house.

If one of a couple needs residential care, the value of the couple's home is ignored in the financial assessment.

marliepanda

Mojisola wrote: »

There shouldn't be a charge on the house.

If one of a couple needs residential care, the value of the couple's home is ignored in the financial assessment.

That's not what I've seen or experienced. There may not be a 'charge' as such, but the £150k will be considered if they're joint owners minus 10% so it may as well be a charge. It won't be the wife's to spend as she pleases.

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

Jointly owned property is disregarded from the financial assessment for as long as your partner remains living in it after you have moved into residential care.

Mojisola

marliepanda wrote: »

That's not what I've seen or experienced. There may not be a 'charge' as such, but the £150k will be considered if they're joint owners minus 10% so it may as well be a charge. It won't be the wife's to spend as she pleases.

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

Jointly owned property is disregarded from the financial assessment for as long as your partner remains living in it after you have moved into residential care.

I'm not sure what happens if the couple's home is sold but the value of the house should not have been taken into account for the financial assessment while the spouse is still living there so there shouldn't be a charge on the property now.

NYM

If the spouse, relative or carer decides to leave the property then the disregard will cease from this date and the property will be taken into account for care costs. Also, only one dwelling can benefit from any of the above property disregards.

This is from FirstStop Care Advice site...

pmlindyloo

Since the OP is asking about a neighbour it may well be that he/she is not in possession of the full facts.

This is a very complex issue and without full details it is very difficult to advise.

The most sensible option for the neighbour is to speak to AgeUK giving them the full facts.

As for the OP he/she needs some 'estate planning' as regards his/her own circumstances.

xylophone

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS38_Treatment_of_property_in_the_means-test_for_permanent_care_home_provision_fcs.pdf?dtrk=true

See page 10

"4.5 Moving from a disregarded property"

geoffken

Thanks for help in this.
It looks like disregard will apply but it is not clear if the "residual "profit" from downsizing can be taken for fees or if second house is also in joint names what happens.
Neighbour will have to seek professional advice.
Thanks again for help

Mojisola

geoffken wrote: »

Neighbour will have to seek professional advice.

That would be best. It does need someone who has understands the way the system works and who has all the financial information from the couple to give accurate advice.

teddysmum

geoffken wrote: »

Thanks for help in this.
It looks like disregard will apply but it is not clear if the "residual "profit" from downsizing can be taken for fees or if second house is also in joint names what happens.
Neighbour will have to seek professional advice.
Thanks again for help

Would actually it be possible for the new home to be in joint names, as the man lacks the mental capacity to make an agreement ?