How can I fund a home for Nanna?

Rhian100

Hi all...I would appreciate any advice. My nanna is 85 yrs old, had a fall, broke her hip, is losing her memory and has a blood clot in her leg. The doctors have adviced me that, for her own safety, she goes in to a home. She is reliant on me as there is no other family, however she lives 4 hours drive away from me. She has just above the threshold savings (ie if she had a couple of thousand less she wouldn't have to pay for nursing home). However, she also owns her house (which is in need of lots of work) meaning that her house would be expected to be sold to fund her place. However, she really doesn't want me to sell her house to fund the placement (also, the concern is, that if she does become well enough to move home and I sell her house, she will have no money and no where to go). I am in the process of getting Power of Attourney. Where do I stand in terms of putting the house in my name or tranferring the extra few thousand over to myself in order to lower her assets. Is this a possibility? It seems extremely difficult to get any information about this so I would really appreciate any advice you can offer me! Thank you!

Biggles

First: don't waste any time in getting the Power of Attorney if your Nanna is losing her memory. If she loses the power to make decisions, you won't be able to get a PoA and will have to apply to the Court of Protection, a much more expensive and time-consuming affair.

Second: No, there's no chance of lowering her assets at this stage, it would be deliberate 'deprivation of assets' and she would still have to pay the full fees anyway.

How much is the house worth? You would probably do well to consider selling the house and buying an immediate care needs annuity (have a read of www.nhfa.co.uk), which should help pay her care home fees and leave her with a fair amount of capital from the house sale for you to invest for her. Don't worry about the house needing lots of work, the usual advice is that spending money on repairs won't be recouped in a higher house price - sell it as is.

You will find a few other threads on this subject here and in the 'Silver Savers' board.

bunty109

We had this with my grandmother. Fortunately she had signed an enduring power of attorney which kicked in when doctors said her memory was going.

All I would advise it to get her assessed. My Nan was older (95), but her memory went very quickly over a short period of time and by the time she was in a home her condition was classed as being so bad that the local authority said they would pay for her care (regardless of the fact she had a house that could be sold to fund this). Of course, this could vary according to the authority.

You can't do anything about "hiding" her assets now, I'm afraid, but the annuity idea was one we were looking into and it may reduce the amount you have to pay out in care home fees.

Rhian100

Thank you for your very informative advice. I will certainly look in to the immediate care needs annuity. The advice is definately a residential home and not a home-care package.

At the moment, her memory is not too bad, and she has been judged as capable of making her own decisions. So, luckily, Power of Attourney still possible. She has also made the choice re: going in to a home in her local area.

Thanks again.

smileykylie_2

Make sure you get a social work assessment. Doctors and Nurses nearly ALWAYS think older people should be in 24 hour care, however it is not always necessary (they do not know what else can be on offer). the house can be disregarded for up to 12 weeks, so that if she returns home in this time you will not have to sell it.
it is not an easy situation, but your Nanna has the right to an assessment by social services no matter what her funding situation.
Good luck

maisiegirl

Can I suggest getting in touch with Age Concern, I've found them very informative and supportive in these circunstances.

I know this sounds heartless but have you and your nanna thought about a pre-paid funeral plan to reduce her savings to below the limit?

Biggles

sloughflint wrote: »

I am not 100% on this so OP will need to check this out but I think if savings are above the threshold then the 12 week rule doesn't apply?

Yes, it just means the value of the house is disregarded. But it may be that she already has more than the threshold (currently £21,500?), in which case the value of the house isn't relevant at the moment.

Rhian100

Thanks!
A few further questions....

Slough flint - what's OP? also - you mentioned the local authoity placing a charge on her house - what does this entail?

Biggles - her savings are only a small amount above this threshold, so unfortunately it looks like the house will be taken in to consideration.

Would renting the house out be a possibility or do the local authority make you sell it?

Biggles

OP = Original Poster, ie You.

They can't 'make you sell it', all they can do (once her savings drop below the threshold, while they're above it she'll be liable for full fees anyway) is take the value of the house into account, so she will always be liable for full fees.

There's no reason why you can't rent; if the income from her pension, her other benefits and from her savings, plus the rent, come to more than the care home fees, she'll be self-supporting.

But renting's a lot of hassle and you implied the house would need money spending on it first. I'd be inclined to sell now and buy an immediate care needs annuity for peace of mind.

Rhian100

It seems so unfair to have to sell the house that she has spent her whole life saving for! there we go, they've got you over a barrel! Thanks for all the advice - it's much needed and much appreciated!

I'll look in to that immediate care annuity - I've never heard of that before this forum...haven't a clue what it is! but will find out. Thanks!

Biggles

sloughflint wrote: »

Can I add a post to this thread which is on a slight tangent but still relevant to OP when POA established?
I have had recent trouble with banks under POA. Some are better than others.
Could people with experience of this suggest good ones with good rates of interest that don't make lfe too difficult for the attorneys?

I think it's more a matter of bank staff, rather than bank policy. That is to say, some staff have hardly come across PoA before and struggle a bit when it comes to dealing with the Attorney. In theory, no bank should have a problem with allowing you access to the account.

The key is to have all the paperwork right, to know exactly what you want to do, and to explain it to the bank. And if they can't cope, ask to speak to the manager. If he can't cope, you may have to talk to a specialist at Head Office.

FWIW, I registered mine with LTSB with relatively little hassle.