Mum moving into care home - how to manage her payments?

elljay

Morning all. I wasn't sure where to post this but thought some of you might have gone through this.  Following an illness my mother has gone into a care home (self funded) for a months trial period - which is likely turn into long term.  She is still making payments (£1.4k a month) on her old place for now and the care home will be about £4k a month.  She usually runs with about £4k in her current account.  So I will need to ensure there's enough in her current account for both payments for now and for the care home alone going forward.   She has various savings, isas etc accounts which I will need to raid - I'd like to load 3 months worth of payments into her current account but that means there'd be rather a lot in there at times.  Alternatively I'll have to remember to load it each month before the payments become due.

 I wondered how other people manage this?  I have PoA and use her online banking for her regularly.

Thank you - EJ

Savvy_Sue

I can't see that even with three months worth of payments that you'd be over the limit for what's protected if a bank goes down the tubes. So if you can't move money around with standing orders, then what you propose seems sensible enough to me. 

My only caution would be if anyone else might be able to access her funds, or if she might still be doing so and therefore vulnerable to fraud. 

jonesMUFCforever

Her own place? Is there insurance on there?
If the property is left unoccupied they might restrict cover, insist on at least weekly visits and possibly remove all insurable valuables.
(Sorry if you were already aware of this).

Socajam

Why not set up the payments to reach her account at a certain time each month.
For example, I use my CC to pay my council tax in 3 months installments and get 7 weeks free credit before the bill is due.
Once the payment shows up on my council tax acct, I log into my bank and set up my payments to the CC for 3 days before it's due.
I may have several payments to both cards ready to leave my account in 6 weeks time  - there is no chance of me forgetting.

missile

I would transfer enough to cover period to cover the trial period. Review and transfer sufficient to meet her new commitments every three months thereafter.  Be careful to keep records of transfers and payments made on your mum's behalf.

You could set e mail / telephone reminders to prompt you to make transfers & payments. Should you forget, most care homes will be helpful when you explain why payment is late.

elljay

Thank you for all your replies.  Yes it was the vulnerability of having that amount in her current account that I was concerned about. I think even £4k is too much, I only keep a few hundred in mine, enough to cover bills that are coming in, spends etc. And yes 'her place' is in a sheltered housing complex in a big house so covered by insurance/door locks/staff and so on.  I don't have a credit card so don't want to complicate it too much, I think I'll take a chance and do it 3 months at a time.

Many thanks for your help.  I hate the responsibility of dealing with someone else's money but needs must!
EJ

JGB1955

Having £4k in her current account is perfectly fine, particularly with low interest savings rates at the moment.  My father would never let his current account go below £30K ... I thought he was absolutely mad but after a couple of years of looking after his finances with POA  I found myself thinking that £10K was the minimum I would want him to keep in it.  Turns out I was right - he died last weekend and I now know that the money in his current account will more than pay for his funeral and other costs before probate can be granted.  Hopefully you won't have that problem to deal with until a long time in the future.

elljay

Thank you JGB1955.  I am so sorry to hear about your father's death - very sad.  My mother is 94 and since being in the care home has put on weight and gained in strength hugely.  But she absolutely hates it!!  I managed to persuade her to reduce the amount in her current account to £4k after a friend of hers had a large amount stolen and a nightmare of a time to get the bank to refund it.  That's my main fear.  However it's not exactly a common occurrence so I'll do the 3 month thing.

So sorry again, I hope you manage to sort everything out. 

EJ