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Care costs and the loss of your home and the bulk of your savings

This question is in relation to my 85 year old widowed mother who currently is in good health and lives in her own home, albeit with some equity release on the property.

If she had to go into care, I understand that “if your capital is under £23,250, you will pay what you can afford from your own income, and the local authority may contribute towards the fees”.

So basically, she can kiss goodbye to any savings above that figure and she will have to sell the house.

 She has a life insurance policy which would be worth about 9k on her death.

If she were to go into care and is there for a while, the money from the sale of house and her savings above 23K has all gone, would they then demand the 9k too?

 

TIA


Comments

  • Keep_pedalling
    Keep_pedalling Posts: 19,351 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 22 October 2024 pm31 1:39PM
    Well everyone kisses goodbye to their wealth when they die but in answer to your question, no life insurance policies are not taken into account in a financial assessment. 
  • henry24
    henry24 Posts: 409 Forumite
    Eighth Anniversary 100 Posts Combo Breaker
    If you are bothered about losing your inheritance maybe let her stay with you 
  • MEM62
    MEM62 Posts: 5,124 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    If she were to go into care and is there for a while, the money from the sale of house and her savings above 23K has all gone

    Has it?  That would depend on the level of cost and how long she remained in the home.  It is far from certain that she would need to use all of her assets to cover her care.  How much equity has she in the house?  
  • This question is in relation to my 85 year old widowed mother who currently is in good health and lives in her own home, albeit with some equity release on the property.



    Well you still have some time to avoid / mitigate care costs as your mother is still in good health.
  • Brie
    Brie Posts: 13,497 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    justwhat said:

    This question is in relation to my 85 year old widowed mother who currently is in good health and lives in her own home, albeit with some equity release on the property.

    Well you still have some time to avoid / mitigate care costs as your mother is still in good health.
    Care to expand on this?  

    As to the OP - mom has already sold a portion of her house to give her the savings she has currently.  To have to sell more of her house to allow her to live comfortably - at least for a couple of years isn't that bad a trade off is it?
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  • bunnygo
    bunnygo Posts: 159 Forumite
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    care has to be paid for somehow...
  • otb666
    otb666 Posts: 795 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 22 October 2024 pm31 5:27PM
    i often wonder about the escape to the county people who pool their money with elderly parents and have therefore big budget and then the annexe or bit or garage the elderly relatives are assigned are not as nice as the main house and what happens when they need care Do they have to sell and down size?
    35k savings no debt
  • Savvy_Sue
    Savvy_Sue Posts: 46,914 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Brie said:
    justwhat said:
    Well you still have some time to avoid / mitigate care costs as your mother is still in good health.
    Care to expand on this?  

    As to the OP - mom has already sold a portion of her house to give her the savings she has currently.  To have to sell more of her house to allow her to live comfortably - at least for a couple of years isn't that bad a trade off is it?
    I'd be thinking of future-proofing the house and garden, as well as doing everything possible to keep mum in good health so that she doesn't NEED a care home. It's not fool proof, but sometimes people stay in properties which are just 'hard work' and not really ideal, risk of falls etc. No idea if justwhat is thinking along the same lines. 
    Signature removed for peace of mind
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