Care Home fees - protecting parent's savings

Mojisola

Keep_pedalling wrote: »

None of the homes in my neck of the woods are LA run, they were all farmed out to private companies a few years back, although there are quite a few homes run by not for profit set ups.

My Dad was in a not for profit home - it was the one that felt 'right' for him and he settled in better than we could have hoped.

One thing that made it right was the internal organisation which wasn't something I'd thought about until I saw it in action. Most of the homes we checked out had several different social areas but they were open to all the residents and we felt Dad would struggle to feel at home with being one of a large crowd and initially finding his way around the large buildings.

The home he settled in arranged the residents in smaller groups so there about ten residents with their bedrooms together and a lounge/kitchen area just for them. The small group was like a family and Dad settled in very quickly.

It took more awareness from the staff because they had to fit personalities together and keep an eye on social interactions but it created a much more homely atmosphere.

Elijah_Bailey

I have read this thread with interest and while there is a lot of strong feelings being displayed regarding social responsibility vs protecting assets, maybe we should basically answer the OP's post and try to put aside the issues of morality and inheritance and just discuss money.

The OP thinks the threshold for assets is £14,000. I am pretty sure the figure is currently £23,500 so she is well above this threshold. Her savings and her home are eligible assets.

The question regarding the limit rising to £100,000 can be answered by the general election result. There was no social care bill mentioned in the Queen' Speech and with no landslide majority this manifesto promise is totally dead. Any changes to social care financing are now years away.

Regarding gifts, I am sure the total of inheritance tax free gifts is £3,000 per year. These will be questioned during a care assessment so unless the OP has a rock solid reason for the gift (wedding present possibly) this may be a dead end.

The withdrawing of money and filling a current account in her children's name will be seen as blatant deprivation of assets by any local authority. This will also apply to any large withdrawal of money that cannot be explained as a legitimate use for the mother's own benefit (new boiler, holidays etc.)

The truth is there is no genuine, legal or easy way to protect her savings because it is not allowed by the government. It would be a mistake to assume the LA or HMRC will not see through a clever ruse to hide assets and the fine you receive will not be worth the risk.

I do not claim to be any kind of expert but I am only speaking through my own experience with my father. The LA person I saw when I admitted my father for self funded care told me horrifying stories of the extent people will go to in order to save their inheritance thinking they are cleverer than HMRC.

We all have to accept it is not the 1970's and we can no longer expect a free ride in care homes at the end of our lives. Some will think this is unfair but reality bites.

To be unpleasantly blunt, people worried about leaving (or receiving) their inheritance need to be aware that care home residence is not usually a long stay. The average stay is about 1 to 2 years in nursing homes and 2 to 3 years in residential homes.