How can I fund a home for Nanna?

Biggles

Rhian100 wrote: »

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!

Yes, I thought that way to begin with. But then, she's not going back to live there and you basically need to think of it as an asset that can make the rest of her life more comfortable.

She doesn't need the house; she does need the money. Saving all her life is going to pay off for her. And (depending on the value of the house and the cost of care and the cost of an annuity) she will have plenty of funds to exist on and, in case it's and issue with any of her children, to leave after she's gone.

Errata

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?

HTH - For anyone with POA it should be relatively straightforward to open an internet savings account with the same bank the 'cared for' person banks with, eg Natwest etc. These savings accounts pay a good rate of interest and it's easy to swop money around between an e account and a current acount.
If the 'cared for' person has held a current account with a bank for donkey's years and they live in a care home, the banks are very understanding about the documentation they would normally require because of money laundering, and realise the 'cared for' person will not have utility bills, TV license, council tax bill, driving license etc etc. as proof of identity.

Biggles

I must admit I read Sloughflint's post re banks as relating to taking control of a Donor's existing current at a High Street bank, which is an area where I know some people have had problems.

But, since becoming Attorney, I have opened half a dozen savings accounts and encountered very little problem.

A couple of exceptions:-

NS&I wouldn't open an ISA unless the Donor signed the form (thus missing the whole point of a PoA!). Though I have taken out a couple of Index-Linked Savings Certificates with them with no problem.

ICICI just couldn't do accounts under a PoA.

Biggles

sloughflint wrote: »

May I be cheeky and ask which?

OK, go on then.

Biggles

But seriously:-

Kent Reliance BS (Direct Cash ISA & Direct Tracker Rollover Bond)
Nottingham BS
Whiteaway Laidlaw Bank
Anglo Irish Bank
Northern Rock
As well as some shares held in a nominee a/c with Selftrade.

Penry

Hi, in my area (scotland), property can be disregarded for up to a year if the stay is considered to be temporary. This is unusual and would be dependent on the social workers agreement that there was a possibility that the person might be able to return home. I have to agree that returning home is unlikely once someone has become dependent on residential care. Has your Nanna had a social work assessemnt yet? She is entitled to this even if she is going to be self funding. In my experience it is unusual for someone to go straight from living at home with no support to 24 hour residential care, unless there are major risks to them living alone, or it is what the individual really wants and they are able to fund it themselves. Good luck

Biggles

sloughflint wrote: »

Whilst researching options today, it is interesting that some places don't accept applications once the court of protection is involved. All the more important to get finances sorted whilst it is at the EPA stage.

The Court of Protection is a whole different issue though, surely? That only comes into play if the person loses mental capacity before you have been able to get him/her to sign a Power of Attorney.

Once you have an EPA (or LPA) signed, it only has to be registered with the OPG and banks etc will accept it as easily after registration as before (only after registration, of course, in the case of the LPA).

Biggles

The Office of the Public Guardian deals with registrations of EPAs (and LPAs) with the Court of Protection. But the Attorneys will still make all the decisions for the Donor, the Court of Protection is not involved in any way with the person's affairs, and banks will(should!) continue to deal with the Attorney(s), registration does not affect that.

When you said "some places don't accept applications once the Court of Protection is involved", I took that to mean 'where the CoP is administering the person's affairs', ie where they had not signed a PoA before losing mental capacity and the CoP had, effectively, become their guardian. I could understand that you, as a relative, would not be able to deal with the banks under those circumstances, I assume they would only take directions from the CoP then. But that's quite different from using a registered PoA.

This is why you have to be very clear of your rights when you go to a bank, as the staff will usually know less than you do about PoAs.

margaretclare

I completely agree with sloughflint and Biggles in posts #16 and #18 above. 'She has spent her whole life saving for....' a house. It's a pile of bricks and mortar in which she has made her home these many years, but at the end of the day it's just - a pile of bricks and mortar. A house is also a big responsibility, it doesn't stand still, it needs repairs, renovations, redecorations, all the things which will now have become difficult - no, impossible - for her. With any luck this major asset which she has spent so long saving for is now worth more than her wildest dreams. Time to use it as an asset to give her the greatest possible comfort for what remains of her life.

As has been said, she also has a fair whack of savings which means that there's not such a lot of urgency. I would agree, finding a nice place to live which is closer to you would seem to be a good option.

I do totally agree with you and many times people in both camps have spats at each other on this forum.....
But I have to say with my extreme fear of care home standards, my viewpoint is if someone is fortunate enough to have assets, I'd rather they spent every last penny on the nicest place possible and not have to rely on authorities' cheap choices

The 'spats' that arise tend to be when the words 'how can I save my inheritance from being swallowed up in care fees' appear on the horizon. The OP has not mentioned any such, and good for her. She is genuinely and wholeheartedly concerned for her Nanna's wellbeing. Would that there were more with this outlook.

Margaret

Rhian100

Thanks to all of you for your advice....it has been really helpful!

Rhian100!