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

CarolWHerts

I posted this originally on the Retirement and Pensions board and it was suggested I could get further help by posting it here too, so here goes.

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 (I gather now that this is actually every 4 weeks) 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?

calcotti

Her pension at £300/4 weeks = £75/week which looks low. I would have expected in most cases she would be getting at least minimum £85/week (£340/4weeks).

You mention getting AA. From what you said they will be funding the care home costs themselves. (If they are not funding themselves in a care home they would not be paid AA after being in a care home for 28 days).

if they will be receiving AA they could claim for Pension Credit which would include two Severe Disability Premiums which would top up their joint income to £414.50/week. There will be a deduction of £1/week for every £500, or part thereof, over £10,000 so there be nothing payable due to the savings.

if he dies she may inherit some of his state pension
https://www.gov.uk/state-pension/inheritance-spouse-civil-partner 
However, if she has no other income the amount of pension she inherits may be irrelevant because she would be entitled to Pension Credit (with the SDP) which will top her income up to £252.00/week (with a reduction if there are capital/savings over £10,000 as described above).

When calculating PC the income from AA is ignored.