Lending Mum money rather than equity release?

Malthusian

AnotherJoe wrote: »

Then you'd be a fool because possibly unlike Slovakia, when Mum goes into a home in the UK the state will take the house

You mean when Mum goes into a home, she will pay money to whoever owns it (sometimes the state), which will come from the proceeds of her old house, like everyone else who moves out of a house they own and doesn't have the resources to maintain two homes.

Unless of course there are no proceeds because the OP or an equity release firm has a charge against it, in which case she is in the same position as someone who rented their previous home.

Slovakia is a developed country and without knowing anything about it, I suspect they have a welfare system in place for people who can't look after themselves and don't have the resources to pay for their own care as well.

maman

AnotherJoe wrote: »

Then you'd be a fool because possibly unlike Slovakia, when Mum goes into a home in the UK the state will take the house*, which means that if the OP doesn't "loan" mum the money, the OP is effectively giving the money to the state.

You said you'd "give your last penny" to your mum, but would you give it to Andrej Kiska ?

So, yes its very clear you "dont understand questions like these" because you are clueless as to how the system works here and have launched into an unwarranted ignorant and rude attack on the OP.

* effectively, without getting into too much detail

Or put another way, OP's mum is paying for care which in other countries (possibly Slovakia even) wouldn't be available so OP would look after her mum herself.


That's not meant as any sort of value judgement on OP it's just the way things are. Why would you expect to get care for free whether it's state or privately provided?


I know there are rules about deprivation of assets but I do get cross when people spend, spend, spend their disposable income throughout their lives and expect the state to pick up the tab. To me, that's an abuse of the welfare system.


OP has chosen not to tell us why her mum is worrying about money and just how short she is each month so any solutions, while in general useful to air, are purely speculation.

kiwi77

Very sensible point here - if you give her a lump sum that brings her assets to more than £23,250 ie the threshold above which the state won't fund care costs - much better to arrange a series of payments as 'gifts' to her so you maintain some control over the money ... having said that being careful that then would not be deemed to be a regular source of income which also could be included in any care cost calculations. ie if there is a record of your provision of money as income the Local Authority would require that regular payment towards care costs to continue. I strongly recommend getting legal advice on this - you can't know at this point if your mother will need residential nursing care - if she ever does, the way you set up any payments now could have a negative impact on any future financial assessment of her by the Local Authority to ascertain the share she has to pay towards her costs.

[Deleted User]

I agree with some of the other posts, I wonder if the problem is not actually finances, but is lack of social outlets and company? Of course, we don't know so please don't assume any judgements. Perhaps, if you don't already, taking your mum out for a treat would help as well so she doesn't have to worry about the cost (you don't have to be extravagant).

Would your mum accept you going over her finances with her to see if she really does need to have any worries?