Lose house when taken into care?

1404

I have a family member in their 70s who recently had a brain aneurysm. It looks like they will have to remain in care. I am told their house may now be taken from them to pay for the care.

However, their spouse still lives in the house. As does one of their two adult children. There are two rental properties too, but I'm not sure who's name they are in (could even be the adult kids names).

Is losing the house a foregone conclusion? What happens regarding the spouse still living there? Anyone have experience of this? 

Flugelhorn

If the spouse is living in the property and that is their only residence then it will be excluded from the financial assessment - however I suspect that the rental properties might be included if he owned them

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/do-i-have-to-sell-my-home-to-pay-for-care/

lisyloo

If it is the spouse's main home then it's a mandatory disregard.
This means the local authority have to disregard the property from the financial assessment.
(the adult children don't count unless they are 'incapacitated').

The two rental properties (if they are his) and any other assets e.g. saving of his (not hers) will be taken into account.
His income e.g. private pensions, state pension will also be taken into account.
If assets (properties or savings) are shared then it's only his share that is taken into account.

They should also look at CHC - continuing health care.
If his needs are primarily medical e.g. he need intravenous medication, medical supervision, then this is free under the NHS. Personal care in this situation is free as it would be in hospital. So whether he's in a care home or hospital is irrelevant  - it's still free under NHS.

If the primary driver is personal care e.g. washing, feeding, bathing, clothing, then it's not covered by NHS.

If this might apply then the spouse should be asking for a Continuing health care assessment.

1404

They are still married, although recently separated.

Good public sector pension/s. But not much wealth other than the three houses (main house where wife and one adult child live, plus two rentals - which may be in adult kids names, but I'm not sure).

Brie

The council will not make a spouse homeless.  Nor will they do that to any adult children with particular needs. 

They will look at any bank accounts in the individual's name plus any joint with anyone else taking 50% into account.  They will also look at any income the individual has but may discount a significant portion if the one at home is dependent on it. 

The one at home's bank accounts, assets, property will not be included. They will consider any asset or property that the one in care has but as with joint bank accounts will not take the whole amount into account.  Where there is rental property it may be that these will be discounted if that's the source of income for the family.

lisyloo

When you say "seperated" has she been living in the home?
Are they estranged?

This all matters as to whether the disregard applies or not. Also who actually owns the home.

They don't "take" people's homes as in come and frog march them out. 
What they do is a financial assessment as to how much he has to pay (if anything).

Worst case (if they are estranged) then the house might need to be sold.
In this case often a deferred payment agreement (DPA) is arranged (basically a  loan), whilst the property is being sold.

The answers are all in the detail.

Both the health and financial assessment could take a few months.

Property and paying for residential care

"5.1 Mandatory disregards If you enter a care home permanently, your interest in your existing ‘main or only’ home is usually taken into account as capital. However, the value should be disregarded from the financial assessment if you no longer occupy the home but it is still occupied, in part or whole, as their main or only home by:
 ⚫ your spouse, partner, former partner, or civil partner, except where you are estranged
⚫ a lone parent who is your estranged or divorced partner
⚫ a relative of yours, or member of your family, who is:
 ⚫ aged 60 or over, or
 ⚫ a child of yours aged under 18, or
 ⚫ ‘incapacitated’. They must have been occupying the property before you went into the care home. The disregard lasts until the situation changes, at which time it may be included in the financial assessment."

1404

lisyloo said:

When you say "seperated" has she been living in the home?
Are they estranged?

This all matters as to whether the disregard applies or not. Also who actually owns the home.

They don't "take" people's homes as in come and frog march them out. 
What they do is a financial assessment as to how much he has to pay (if anything).

Worst case (if they are estranged) then the house might need to be sold.
In this case often a deferred payment agreement (DPA) is arranged (basically a  loan), whilst the property is being sold.

The answers are all in the detail.

She lives in the family home with an adult child. He moved out when they separated and moved into one of the rental properties (which is also lived in by the other adult child).

Originally it was very much his house. He bought that house with a previous wife. 

I'm assuming they jointly own the house as they have been married for over 20 years (with the new wife).

lisyloo

My interpretation as a lay person is that they are estranged i.e. not together.
Given they've been living in separate houses and presumably paying council tax at different addresses that will be on record.
She might qualify as a "relative" if over 60.

If she doesn't qualify then his share of anything he owns will go into the financial assessment.
i.e. half of the main home (if in joint names), any share of rental properties, 50% of any joint accounts, 100% of any investments, savings in him name.
His private income, state pension will also be counted.

The property may need to be sold and she may need to move.

The adult children are irrelevant in this.

1404

Well, it sounds like the estranged wife is staying put in the family home. 

lisyloo

1404 said:

Well, it sounds like the estranged wife is staying put in the family home. 

why do you say that?
Does he have enough other assets?

1404

lisyloo said:

1404 said:

Well, it sounds like the estranged wife is staying put in the family home. 

why do you say that?
Does he have enough other assets?

I say that because of what people say above on this thread. That they won't kick her out.

His other assets are the two rentals and his pensions, but I imagine the estranged wife has dibs on those. I have not known her to work throughout the marriage, but I may be wrong on that. She has brought up two kids.