Dad has Dementia. Best course of action to protect assets?

Sailtheworld

Start discussions with your mother about what she wants to do when dad has gone. It's easy to not see the wood for the trees when you're deep in dementia - if your dad has deteriorated badly over the last 12 months there's a really good chance he won't be around this time next year.

stancrom

macman said:

You say that they have 'hardly any savings', then that he has received 'a £75K lump sum'?
How long has the mortgage left to run? As you say, the priority must be to repay the capital due at end of term, without which your parents will not have a roof over their heads.
I'm also unclear who currently owns the property, or to whom it is registered at the LR?

• I said they have HAD hardly any savings - meaning over the last 20years - past tense. They've scraped by month by month in that time and have only just received the pension my dad was actually entitled to for the last 13
• The mortgage which is interest only, has some years left on the term - I think 10. 
• My dad was sole beneficiary of his father's estate and the loan my grandfather had on the property was basically carried over to my dad as 'Representatives of (his father)'. The Deeds of Assent are with a solicitor (although said firm is now dissolved) and are not currently in my dads name - specifically. This is a particular issue of concern (and not fully clear) which can only be understood and resolved through a solicitor (and settlement of mortgage) and my mum is taking action on that front.    

stancrom

eskbanker said:

stancrom said:
The question - with all the above in mind - is basically what might be their best approach to protecting their assets (property and the remaining lump sum) should my dad require care at some stage, I am unclear what means-test qualifying 'assets' may be considered in that instance? I would love my parents to be able to spend their newly-acquired cash enjoying themselves in later life rather than having it taken away, after having had a tough time over the last 25 years or so, but think the time for that has probably passed (at least for my dad)

Who would 'take it away'?  If your father has capital then the expectation is that he'd use it to fund his care rather than relying on the state to do so (beyond some basic provisions), and if he tried to conceal it or dispose of it in some way then that would typically be regarded as deprivation of assets.  The marital home wouldn't be considered when assessing care funding if either of them is still living there:

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/do-i-have-to-sell-my-home-to-pay-for-care/

• Thanks for the reply. I wasn't suggesting for a second that my dad's pension lump sum might be surreptitiously squirreled away illegally (or even immorally), more that this is all 'new' and unforeseen for my family and we are trying to find out what the best course of action should be. If my dad has 75k in the bank which (morally and legally) should be used to fund any future care costs, no-one has an issue with that.  Regards.

stancrom

elsien said:

You are in England? 

Does he still have capacity to complete a power of attorney or are you looking at deputyship? 

Who is being named as the deputy - at their age it should not just be your mother. Is she setting up a power of attorney for herself as well - she would be wise to do so. 

If dad has care needs, have you looked at attendance allowance? Has he had a care needs assessment?

Any care he needs would be subject to a financial assessment but that doesn’t mean they can’t do holidays and all the usual things that people spend their money on. And the aim would be to keep him at home rather than having to go into care. Mum can have a carers assessment of her own needs as well, and it may be that things can carry on ticking along with support coming in. 

• Hi, thanks for your comment. Yes, in England. He does (just about) still have capacity. Myself and my sister are also named. The LPA application went in about 3 weeks ago and sure my mum will get a reply on this soon.
•  My mum has also just applied for and now receives attendance allowance. I don't know if he has had a specific care needs assessment (the attendance allowance was granted on the basis of his diagnosis as far as I am aware)
• Fully agree the aim would be to keep him at home for as long as possible and ensure my mum gets the support she needs (from her family too of course)
• Thank you  

stancrom

sparkiemalarkie said:

Apply for reduced council tax 
https://www.moneysavingexpert.com/reclaim/severe-mental-impairment-dementia-council-tax-rebate/

This is something she only learned about recently too and now she is getting the reduction. Thank you 

stancrom

Keep_pedalling said:

As his attorney anything you do with that money has to be for his his benefit alone, it does not give you the right to protect a future inheritance. Paying off the mortgage would be a perfectly legitimate use of the money as it seems they have no other way of paying it off so would risk losing their home at some point in the future.

While your mum lives there the house will be disregarded as far as care costs are concerned.

You should investigate whether your father can claim attendance allowance, which is not means tested which will help pay for care.

Does your father have a recent will in place?

• Fully understand your first point and, to be clear, I have zero interest in 'inheritance'. I want them to use the money in the best possible way they can for themselves. 
• "While your mum lives there the house will be disregarded as far as care costs are concerned": is this the case in the current state of affairs with the mortgage/names on Deeds? I am not clear....Perhaps this is the main driver for getting the mortgage paid off and the process re. Deeds completing
• Attendance allowance was applied for very recently, successfully, yes.
• Thank you for the reply.  

csgohan4

just curious is the 75k back payment for the deferred pension? if it is, would it be taxed?

stancrom

csgohan4 said:

just curious is the 75k back payment for the deferred pension? if it is, would it be taxed?

It is indeed. And it wasn't taxed, since my parents' income didn't meet the threshold to make it so (as I understand)
"The deferred state pension lump sum is not included in your total income when calculating your tax. As described above, you work out the highest main tax rate that applies to your other income and then that is used to tax the lump sum"

LHW99

When the LPA is received, it could be worth you / your mum (with any other named attorneys) getting advice from an independent financial adviser. Those who are members of SOLLA have specific expertise in issues in later life, although that is not to say that another IFA may not be equally competant in the field

https://societyoflaterlifeadvisers.co.uk/

stancrom

LHW99 said:

When the LPA is received, it could be worth you / your mum (with any other named attorneys) getting advice from an independent financial adviser. Those who are members of SOLLA have specific expertise in issues in later life, although that is not to say that another IFA may not be equally competant in the field

https://societyoflaterlifeadvisers.co.uk/

Thank you