Care fees - what can the government take?

devonian20

Hello
I am hoping for some very general advice (hoping to put my mums mind at ease).  She is 65 and Dad 70 - and Dad has A-Typical Dementia which was diagnosed around 18 months ago and has progressed what feels like fairly quickly.

She is concerned about what could be taken from them financially if he has to go into care - their situation financially which I guess will make a difference is approx:

Own house outright - value about 500k
Savings of about £100k I think plus private pension for dad and state pension.

They have done a tenants in common which I think is to do with if Dad goes into care it protects half of the house value. 

Can anyone give me the basics please?
Thank you

xylophone

SEE https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs10_paying_for_permanent_residential_care_fcs.pdf

elsien

As his spouse while she is still living in the property, it will be disregarded for any care financial assessments. 

I think they’re starting point would be that he would be assumed to earn 50% of the savings if they are in joint names so initially he would be likely to be fully self funding, in which case he could keep his attendance allowance as well. 

But  consideration would also need to be given to making sure that your mum could continue to maintain herself. It does vary slightly between councils The above link is a good starting point.

Also worth bearing in mind that if he was fully health funded, he would not contribute at all however a diagnosis of dementia in and of itself does not qualify and full health is very hard to get. 

There is a similar fact sheet around paying for care at home because that would also be financially assessed.

Keep_pedalling

The house will not be included in any financial assessment while your mother lives there. His savings (or 50% of joint saving) plus his income will be taken into account, although so will your mother’s expenses that may offset how much he would need to contribute.

Severing the tenancy does not protect the home from care costs in this case as the house is excluded but it would protect 50% of if if your mother went into care after your father’s death or in the event you mother remarried and failed to make a new will in favour of her children. 

Stubod

If it is deemed that he cannot get fully funded, (unlikely if dementia without any physical problems), they can take pretty much everything he has in his name, (or half if in joint account, savings and pensions), down to about £24k of savings, tapering down to around £14k. However property is excluded if spouse living there. 

(This was the case with both my father and father in law....)

Linton

devonian20 said:

Hello
I am hoping for some very general advice (hoping to put my mums mind at ease).  She is 65 and Dad 70 - and Dad has A-Typical Dementia which was diagnosed around 18 months ago and has progressed what feels like fairly quickly.

She is concerned about what could be taken from them financially if he has to go into care - their situation financially which I guess will make a difference is approx:

Own house outright - value about 500k
Savings of about £100k I think plus private pension for dad and state pension.

They have done a tenants in common which I think is to do with if Dad goes into care it protects half of the house value. 

Can anyone give me the basics please?
Thank you

The Government cannot take anything except through the courts (eg if elder financial abuse is suspected, debts not paidetc).  Using such language spreads unjustified fear.  In any case it is the Local Authority who are involved, not the Government.

Just as with any other part of the benefits system, claimants for assistance with permanent care fees are assessed (ie means tested) to check whether their circumstances justify the benefit.  If you can afford the costs yourself you dont get the benefit.

It is then up to the individual concerned to make their own arrangements, if necessary with the assistance of whoever has taken responsibity for their general welfare and finances.

In assessing care home affordability only the assets and income owned by the claimant are taken into consideration.  Assets owned by a spouse for example are not part of the assessment. Certain other assets are disregarded, in particular the value of your home if also occupied by your spouse/partner, your children under 18, a relative  who is disabled or over 60 etc.

Private pension pots are disregarded if you are under State Pension Age.  If older you are assumed to be taking an income from it, eg an annuity, and assessed accordingly.

The benefit of changing house ownership to tenancy in common is that should Dad die first his half can be bequeathed to someone other than Mum who is given the right to live in the whoile house for the rest of her life.  Should Mum subsequently need to go into care only Mum's half is assessed for care home fees.

Albermarle

Even if they have to pay themselves, it is still worth at first to get the LA social services to do a proper assessment of your Dad.
It is better to be 'on their books' and they may be able to offer you advice on the best way forward ( even if for now they will not pay for anything). 

Linton

Albermarle said:

Even if they have to pay themselves, it is still worth at first to get the LA social services to do a proper assessment of your Dad.
It is better to be 'on their books' and they may be able to offer you advice on the best way forward ( even if for now they will not pay for anything). 

Possibly.  I found that when it was obvious that no council contribution was justified social services lost interest, it was my problem as PoA to sort out.. 

Albermarle

Linton said:

Albermarle said:

Even if they have to pay themselves, it is still worth at first to get the LA social services to do a proper assessment of your Dad.
It is better to be 'on their books' and they may be able to offer you advice on the best way forward ( even if for now they will not pay for anything). 

Possibly.  I found that when it was obvious that no council contribution was justified social services lost interest, it was my problem as PoA to sort out.. 

The issue is that if a self funder is likely to become council funded at some point ( as money available starts to run out). It can be better to be on their books for a smoother transition.
Also in theory at least you should be able to request a statutory assessment, before any financial issues are considered.

elsien

Local authority also has an obligation to signpost to any possible sources of information and support. So even though they are not providing the care, the assessment should theoretically enable them to point you/the person/the carer to any support systems or agencies they may not be aware of.
If there are still any of those left anywhere.