Investing money from sale of mum's house to pay for her care?

JohnRo

Just out of interest would the LA be held responsible for any damage caused to the property by 'their' tenant?

Linda-la

Just out of interest would the LA be held responsible for any damage caused to the property by 'their' tenant?

I believe the contract states that they are obliged to return it in a similar state to how they received it. So if a tenant managed to punch a hole in a door, or break a window, I think they have to fix it back to how it was before the damage. It's a good point to check before agreeing to sign any deal though!

Squoozy

Hello Linda la,

I'm sorry to read about your mum. I have some experience of this that might be helpful. My mum has Alzheimers and has been in a care home since 2011. She was sectioned under the mental health act after she was found outside in the snow in her nightdress in the middle of the night. I had dropped her off at 4pm after she stayed with me for Christmas and had also called her at about 8pm. She was in hospital for two months, and we were more or less forced into the decision because she kept running away when we tried to look after her.

We decided to rent out her house to pay for her care. We were not able to get any funding for her, although we did apply for, and still receive, attendance allowance for her, which also helps to pay for her care. The arrangement has worked well for us. We found some long term tenants and the income more or less covers the costs, although we do sometimes worry about whether the care costs will increase. There is absolutely no spare money, and we have on occasions not had enough to cover costs, so we have a slight deficit logged againt the house with the council, usually from when we have maintenance costs associated with the house. In my view whatever decision you come to there will be some stress and worry about financial arrangements. It does feel better to me that Mums house is still there whilst she is alive, but its a very personal thing.
My mum had worked so hard for her house and it didn't feel right to sell it.

Regarding assessment for care costs, we have never been successful with this. Despite a number of assessments for various reasons (Mum is subject to Deprivation of Liberty safeguards) apparently she is not unwell enough to warrent having her care paid for, which is amazing given that she cannot do anything for herself, she doesn't know who we are, can't hold conversations, can't wash herself, can barely walk, is covered in sores and ulcers, and is incontinent. She is clearly ill, and didn't choose to go into a home, but is being forced, via us, to pay for every aspect of her care.

My advice is do do what feel right for you and your family, and be prepared to fight for your mother's rights. Don't be railroaded into doing anything too quickly.

justme111

Squoozy , I think the matter with funding is that there are no funds for it. So while on paper it says your entitled to it if she is ill enough on pracrice they will not assess as being such bexause there is simply no money. My frustration would be with people who lie keeping pretences on paper instead of admitting the truth ie politicians. Your mum worked hard and it paid off as she lived in that house and it now provides funds for her care and will continue to do so if it needs to be sold. If she does not know who you are she will not be upset about house being sold. It is sad that people at the end of their lives change to such an extent , it must be very emotional for you to see your mum like that. Hugs and best wishes.

Chickereeeee

We are in a similer situation, but MIL is 90. We have rented the house out, and taken the deferred payment option. The charges look to be a bit lower where we are located.

Warning: it has taken months and months to get land registry, details of ownership and final deferred payment approval set up. (Seven so far!)

C

steampowered

The suggestion of buying an annuity sounds like a good idea.

jdw2000

Linda-la wrote: »

... invest most of the proceeds into a fixed high interest savings account or bond, so that the interest earned on the capital would pay a hefty chunk of the care home fees.

And then you wake up from your lovely dream...

High interest savings accounts do not exist. And the highest interest ones will not be paying off a "hefty chunk" of anything much.




As an aside, it is a shame (in my view) how ppl who have collateral are forced to sell whereas ppl who have nothing get the same treatment for free.

AnotherJoe

jdw2000 wrote: »

As an aside, it is a shame (in my view) how ppl who have collateral are forced to sell whereas ppl who have nothing get the same treatment for free.

Not necessarily true, you should be able to afford a better care home (define better however you want, might just be location or ability to move if you don't like it) if you have collateral than if you Just take whatever the council gives you.

AnotherJoe

steampowered wrote: »

The suggestion of buying an annuity sounds like a good idea.

An annuity will wipe out all the collateral in the house, whereas letting go the council is likely to leave something at the end. It is a gamble though, and depends exactly on the sums involved.

Letting out the house, to an extent, should also help keep pace with inflation, and finally if its not working out the OP can then sell and buy an annuity, whereas doing that first removes all choice for the future.

Being somewhat cold about it, with OPs mothers symptoms, odds are it will not be a long stay. I think my dad lasted about 3 years at most from the point OPs mother seems to be at. So immediately buying an annuity and losing all the money in the house straight away is on the grounds of probability a poorer choice.

jdw2000

AnotherJoe wrote: »

Not necessarily true, you should be able to afford a better care home (define better however you want, might just be location or ability to move if you don't like it) if you have collateral than if you Just take whatever the council gives you.

You'll still be sitting next to ppl who aren't paying a penny for it.