Pension credits and Care Home

mckee214

My mum, who's 93, is in a Care Home, but because she has no property or savings,  it is paid for with her pension credits.   The Care home don't take all of it and so she's been saving the rest (as elderly people do).  She takes comfort in thinking that she can give it to her children.   However,  I've since heard that either the govt or the Care Home will take (invoice?) whatever is left when she passes away.  Is this accurate?  Also,  as I have Power of Attorney, can I move the funds to a savings account in my name to stop this?
Thanks in advance

p00hsticks

mckee214 said:

My mum, who's 93, is in a Care Home, but because she has no property or savings,  it is paid for with her pension credits.   The Care home don't take all of it and so she's been saving the rest (as elderly people do).

How much exactly is she being left with ? I'm not sure if the rules are standard across all local authorities and countries of the UK, but when my late mother-in-law was in a similar position, they took all of her state and small private pensions except for £25 a week, which they allow the person to keep for personal expenses. However, given that this had to pay for things like toiletries, night clothes, hairdresser and chiropody visits etc there really wasn't much, if anything, left. 

mckee214 said:

However,  I've since heard that either the govt or the Care Home will take (invoice?) whatever is left when she passes away.  Is this accurate?

It depends exacty how the funding has been arranged. There are cases (e.g.where there is a property involved that would need to be sold) where the local authority will effectively 'run up a tab', building up a debt that is only paid later when the person dies or the property is sold. I'd be surprised if, as  you say there is no property involved, this is the case here, but then I;m also surprised that she is being left with what you hint is a reasonable amount of money each week, as it doesn't match with my personal experience as described above. If by 'pension credits' you are referring to the Pension Credit benefit this would suggest that she is in receipt of less than £200 a week and I find it almost impossible to believe that that would cover a weeks care home fees.       

mckee214 said:

Also,  as I have Power of Attorney, can I move the funds to a savings account in my name to stop this?

Absolutely not. Your PoA role is to always act in the best interests of your mother, and taking money away from her account and giving it to yourself cannot be justified.

mckee214

Oh no!!  I didn't mean that!!  I meant to put it in a savings account to keep it safe!!  I have brothers and sisters who would know about it.   Its only £6k anyway - but that's a lot to mum. 

Froglet

No,neither the care home nor the government can take what is left in her savings account.My Mum was in a similar position last year when in a care home and it being paid in part by the local authority.Her pension and pension credit was used to pay,bar about £25,and the family paid a top up fee also.
When she died all the payments stopped,and what was left in her bank account stayed there till I sorted out with the bank,being the executor,an account to pay it into as part.of her estate.So you've no need to.worry.
I wouldn't touch her account while she is alive,as there will be checks on her finances periodically.

mckee214

Also, you are right,  she is being left with only about £25 a week but doesn't spend it.   Its got to about £6 k or £7k, so I imagine they'll leave that alone going by what you have said.  

Pennylane

Not quite understanding this. So the LA pay her care home fees from her benefits and leave her with a small amount (which is usual.) 

msb1234

I’m assuming she has had a financial assessment done by the Council? If she was in receipt of pension credits she won’t be a self funder. She should get an (novice from the Council, not the care home. The Council then pay the care home plus any top up they are paying.

Savvy_Sue

mckee214 said:

Oh no!!  I didn't mean that!!  I meant to put it in a savings account to keep it safe!!  I have brothers and sisters who would know about it.   Its only £6k anyway - but that's a lot to mum. 

I just want to check that you've now understood that you can only act in your mum's best interests, and that does not include keeping any of her money 'safe' in your own account, even if your siblings know it's there. You could move it to a savings account where it would earn interest, using your powers as attorney, but it would have to remain clearly 'labelled' as your mum's money. 

JJWSJS8700

mckee214 said:

My mum, who's 93, is in a Care Home, but because she has no property or savings,  it is paid for with her pension credits.   The Care home don't take all of it and so she's been saving the rest (as elderly people do).  She takes comfort in thinking that she can give it to her children.   However,  I've since heard that either the govt or the Care Home will take (invoice?) whatever is left when she passes away.  Is this accurate?  Also,  as I have Power of Attorney, can I move the funds to a savings account in my name to stop this?
Thanks in advance

Which benefits are they letting her keep?

I think you mean the £25 toiletries money per week, which she is allowed to keep.

She is allowed £10,000 in her bank account before if affects her benefits/care home fee payments.

Who pays for her ‘toiletries’, has she got a funeral plan?

Pennylane

Pennylane said:

Not quite understanding this. So the LA pay her care home fees from her benefits and leave her with a small amount (which is usual.) 

Are you confusing State Pension with Pension Credit?

Malthusian

mckee214 said:

Oh no!!  I didn't mean that!!  I meant to put it in a savings account to keep it safe!!  I have brothers and sisters who would know about it.   Its only £6k anyway - but that's a lot to mum. 

As you have Power of Attorney there is nothing to stop you putting it in a savings account in her name, but not yours.
If I was your mother's attorney I would encourage her to spend it. As p00hsticks says, there are plenty of things 93-year-olds in care homes could need that money for.