Can a Local Authority Retrospectively Claim for Care Costs After Sale of Property.

TroubleWithTribbles

My father-in-law is due to go into nursing care and while the level of finance has not as yet been determined, it is usual for the local authority to use the proceeds of the sale of their property to part fund their care.  

However, he joint owns the property (tenants in common) with his estranged wife who he has not seen for 5 years.  He is not in good health and his wife will probably out-live him.  In his will, his half of the property has been left to his 3 children (from a previous marriage) and his estranged wife, we assume will leave her half to her daughter.

Naturally, the property cannot be sold until after both joint-owners have passed.  My question is, can the local authority make a retrospective claim on the property to cover his costs while he was in care.

elsien

Yes, they can make a deferred payment agreement - this could include a charge on the property to make sure that the money is repaid when the property is finally sold.

https://www.moneyhelper.org.uk/en/family-and-care/long-term-care/deferred-payment-agreements-for-long-term-care

I’m not sure why you’re saying naturally the property won’t be sold until both people have passed on because if his ex-wife isn’t living there then there’s no reason for her not to agree to sell. 

TroubleWithTribbles

elsien said:

Yes, they can make a deferred payment agreement - this could include a charge on the property to make sure that the money is repaid when the property is finally sold.

https://www.moneyhelper.org.uk/en/family-and-care/long-term-care/deferred-payment-agreements-for-long-term-care

I’m not sure why you’re saying naturally the property won’t be sold until both people have passed on because if his ex-wife isn’t living there then there’s no reason for her not to agree to sell. 

Thanks for your quick reply and for proving the link.  I have read this paragraph in there which I understand that this will not apply to him as someone is still living in the property.  Do you think that would be the case and that the council would not include the property and make a retrospective claim?

"If your partner, a dependent child, a relative aged over 60, or someone who is sick or disabled still lives in your home, it won’t be counted as part of your assets. So you won’t have to use the wealth tied up in your home to pay for care, and you don’t need a deferred payment agreement."

elsien

Who else currently lives there who you think meets the disregard eligibility criteria,  because it’s not clear from your post? 

TroubleWithTribbles

elsien said:

Who else currently lives there who you think meets the disregard eligibility criteria,  because it’s not clear from your post? 

His estranged wife still lives in the property and she is 50% owner, so the property cannot be sold until she eventually passes away.

elsien

So it’s not his main home and he hasn’t lived there for five years? In that case, it may not be disregarded. I’m not sure though, so you’d probably have to get proper advice on that one. 

TroubleWithTribbles

elsien said:

So it’s not his main home and he hasn’t lived there for five years? In that case, it may not be disregarded. I’m not sure though, so you’d probably have to get proper advice on that one. 

He has been living in residential care for the last 5 years, and his wife still lives in the property that they jointly own.

elsien

Okay, it might help if you gave all the relevant information in one go. 

How is his current residential place being funded because he should already have had a financial assessment for that, which will have determined the status of the property. A move to nursing care shouldn’t change anything, unless he will be fully health funded, in which case his care would be free anyway.

TroubleWithTribbles

As he is in a Mason's run residential home, it is funded part by himself, the Masons, and the local authority.  However, it is likely that he will have to go into a non-Masons facility and will therefore lose their contribution and the additional financial burden will fall on him and/or local authority.

elsien

But the local authority funding that he currently has will have included a financial assessment. They wouldn’t be funding him otherwise. So what does that assessment say about the property?

TroubleWithTribbles

elsien said:

But the local authority funding that he currently has will have included a financial assessment. They wouldn’t be funding him otherwise. So what does that assessment say about the property?

That is something that we don't know and will have to find out before we can move on.  Thanks for your help, it is much appreciated.