Granny flat - deprivation?

ella_minnow

We live in a converted barn with another semi-derelict barn attached. We had plans to convert the derelict barn to self-catering or rental accommodation, possibly with available tourism funding in our area, or with a loan.

However my father-in-law has recently died unexpectedly, leaving my 76 year old mother-in-law - who is in good physical health, but emotionally fragile - alone.

She owns her house, worth around 120K, but does not like the thought of living alone. We could obviously convert the barn to a granny flat instead of our original plan and she would be close to us but still have her own space. Without funding, we would need to use a loan, which she would then either repay to us when she sells her house; or, she would have to pay us enough rent to cover the loan repayments.

I'm concerned that down the line this could be considered deprivation of assets, as she would be using the sale of her house to add value to ours.

It would be a good solution care-wise, but clearly we wouldn't be able to follow through with the original plan, and I don't want to find we are on sticky wickets down the line.

Any advice much appreciated.

Savvy_Sue

I can't comment on the DofA thing, but do think carefully about this. Granny flats can be tricky to get planning consent for on a 'what to do when Granny no longer needs it' basis - sometimes there are restrictions which mean said flat can only be inhabited by Granny or a.n.other relation.

The other thing to bear in mind is that mil's physical or mental health may change, leaving the pair of you facing the question of what now? Do you (attempt to) do all the caring yourselves, or get carers in? Don't have any illusions about how hard it is to do the caring yourselves.

I think what I would do is look at what sheltered housing there is locally, especially if you can find somewhere which is future proofed. There are a couple of places near us where you can live independently, get care in when needed, move on to more supported living, and finally there are options for full nursing and dementia care all on one site.

another suggestion, if her current home is suitable (and future proofed or future proofable) and she would like to stay in that area, would she consider Homeshare?

securityguy

ella_minnow wrote: »

We live in a converted barn with another semi-derelict barn attached. We had plans to convert the derelict barn to self-catering or rental accommodation, possibly with available tourism funding in our area, or with a loan.

However my father-in-law has recently died unexpectedly, leaving my 76 year old mother-in-law - who is in good physical health, but emotionally fragile - alone.

(...)

I'm concerned that down the line this could be considered deprivation of assets

Deprivation of assets only arises when the need to fund care is in immediate prospect or reasonably foreseeable, and the transaction entered into has as its sole or main purpose the avoidance of payment for that care and no legitimate purpose otherwise (ETA: or insufficient legitimate purpose to outweigh the effect on funding). Someone of 76 in good physical health moving into more suitable accommodation (or, indeed, spending the money on a cruise and good wine) is not subject to any such problem.

DoA does not mean that people need to sit on piles of cash on the offchance they might need care. It means they can't, when the need to fund care is imminent, enter into transactions whose main purpose is to move money out of their assessed capital.

Person_one

Don't make any big decisions in the immediate aftermath of a bereavement. Wait 12 months and see how everybody feels then.

Tammykitty

No Deprovation of assets should not apply in the case.


DoA (In terms of social care) only applies if you give away assets, with the intention of avoiding paying for care.


In this case, the MIL is selling the asset to fund somewhere for her to live and with no forseeable need for care at the minute, so no reason to assume DoA