Moving into care home - what SP would my mother get if my father dies?

CarolWHerts

I am currently sorting out my parents' finances prior to them moving into a care home. They are in their late 80s/early 90s and have a mix of dementia and physical ailments. I have full powers of attorney. They have always been very independent and fiercely private about their finances and have only recently let me have access to their (once organised, now rather chaotic) filing system so I am now having to piece together what's going on. 

It appears that my father gets around £600 in state pension every month. In addition my father has a Phoenix annuity dating back to when he retired in the 1980s that pays £575  per month (there doesn't appear to be any index linking), but this will stop when he dies. He was self employed and my mother didn't work after having her children. She gets about £300 per month in state pension. They managed quite comfortably on this, own their home and have significant cash savings (that will exclude them, probably permanently, from any assistance with care fees). We expect to receive higher rate attendance allowance for them both. 

There are lots of decisions to be made, and I will be taking  professional (SOLLA) advice about care needs annuities etc. but it would appear that should my father die first, that would leave my mother with very little income as his state pension and annuity would die with him.

If this happened would she qualify for any additional pension top up or benefits? 

Is there anything else I should be thinking about?

molerat

State pension is paid 4 weekly so it looks like your mother could be receiving £85 pw which would be based on your father's contributions.

2 links which give information, the second is very good and you need to scroll down to section 11 for the relevant bits.  A lot of the information you need will be on their annual pension award letters as that is broken down into the relevant parts.

https://www.gov.uk/state-pension/inheritance-spouse-civil-partner

State Pension (ageuk.org.uk)

mark55man

Molerat's answer looks very helpful, but you may get more help on the benefits boards.  I suggest you cross post or I could ask for this to be moved for you @CarolWHerts

Andy_L

https://www.gov.uk/death-spouse-benefits-tax-pension/pensions

"

If you reached State Pension age before 6 April 2016

You’ll get any State Pension based on your husband, wife or civil partner’s National Insurance contribution when you claim your own pension.

You will not get it if you remarry or form a new civil partnership before you reach State Pension age."

Keep_pedalling

As self funders in residential care they should be able to obtain attendance allowance which is not means tested. On your father’s death your mother should also be entitled to pension credit.

xylophone

Your father and mother both receive their state pensions under the old state pension scheme.

When you say £600 a month for your father, do you actually mean every four weeks? 

And your mother? Is it £300 every four weeks? Is there any reason why she is not entitled to around £85 a week?

See (under  Old State Pension)
  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1036433/benefit-and-pension-rates-2022-2023.pdf

Their statements of increase (probably received March last year) will show how their pensions are made up.

On the figures given (and assuming £600 every four weeks), it would seem that your father is in receipt of  Basic State Pension (£141.85) plus some Additional State Pension (Grad/Serps).

On that basis, one would have expected that your mother would be entitled to the spouse rate based on your father's NI record.

If he should predecease her, one would expect that she would be able to claim a full basic on his contributions plus  a percentage of his ASP.


See Annex A p21 here 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf

With regard to Pension Credit see

xhttps://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

GrubbyGirl_2

Moving into a care home makes no difference if they are funding their own care so they will both get in the care home exactly what they would have got if they were living at home.  The only time it will change is if Social Services or the NHS start funding their care in which case they will get a significantly reduced State Pension and won't get any attendance allowance as this is used to offset other public sector funding contributions

Keep_pedalling

GrubbyGirl_2 said:

Moving into a care home makes no difference if they are funding their own care so they will both get in the care home exactly what they would have got if they were living at home.  The only time it will change is if Social Services or the NHS start funding their care in which case they will get a significantly reduced State Pension and won't get any attendance allowance as this is used to offset other public sector funding contributions

State pension would be unaffected, but most of it would go on their contribution for care costs. 

GrubbyGirl_2

Keep_pedalling said:

GrubbyGirl_2 said:

Moving into a care home makes no difference if they are funding their own care so they will both get in the care home exactly what they would have got if they were living at home.  The only time it will change is if Social Services or the NHS start funding their care in which case they will get a significantly reduced State Pension and won't get any attendance allowance as this is used to offset other public sector funding contributions

State pension would be unaffected, but most of it would go on their contribution for care costs. 

Isn't that what I said?  Just to give real numbers if care is being paid for by either the NHS or Social Services then the pension received reduces to £24.90 per week for personal expenses