Care home fees?

LOADSAMUSIC

I have my Mothers property on the market at the moment to finance her stay at a care home...I have taken independant advice on the best way to invest the money from the sale...However,I am wondering about the amount of money that can be given annually as gifts..?? The reason is , yes it would make the money disappear quicker....but it would also mean in the long run that the Local Authority would have to fund her at an earlier stage and the money given in ''gifts'' would still be safe... Am I right to assume that she would be able to give away £3,000 per annum and that if she has not used last years allowance then that would be £3000 x 2 =£6000 that I would be able to ''give away '' on her behalf when the property sells...I expect to have Power of Attorney in place on the 10th October,2008..A ny advice would be welcomed''' Thanks

dunstonh

However,I am wondering about the amount of money that can be given annually as gifts..??

As much as you like providing that she is not in receipt of benefits either now or in the forseeable future.

yes it would make the money disappear quicker....but it would also mean in the long run that the Local Authority would have to fund her at an earlier stage and the money given in ''gifts'' would still be safe...

This is called deprivation of assets and you can be taken to court over it.

Am I right to assume that she would be able to give away £3,000 per annum

That is for inheritance tax exemption not means testing.

LOADSAMUSIC

dunstonh wrote: »

As much as you like providing that she is not in receipt of benefits either now or in the forseeable future.


The 12 week period before the property came into the equation was reached on the 27th August 2008... I have now applied to have her Disability Living Allowance and Attendence Allowance reinstated....as she is self-funding. Ahave a deferred payment arrangement with the local council , and my solicitor is dealing with them to stop ''a charge'' being levied on the property..From your reply..does that mean she can give no gifts.?? What happens for family birthdays etc....surely she should not be expected to give this out of her ''personal allowance'' of £21 per week ?????

dunstonh

does that mean she can give no gifts.??
What happens for family birthdays etc

Within reason she can spend her money how she likes. However, gifts of money in the thousands are going to stand out like a sore thumb.

You may want to look up "deprivation of assets" as that covers what is and isnt allowed in more detail.

margaretclare

LOADSAMUSIC wrote: »

dunstonh wrote: »

As much as you like providing that she is not in receipt of benefits either now or in the forseeable future.


The 12 week period before the property came into the equation was reached on the 27th August 2008... I have now applied to have her Disability Living Allowance and Attendence Allowance reinstated....as she is self-funding. Ahave a deferred payment arrangement with the local council , and my solicitor is dealing with them to stop ''a charge'' being levied on the property..From your reply..does that mean she can give no gifts.?? What happens for family birthdays etc....surely she should not be expected to give this out of her ''personal allowance'' of £21 per week ?????

Hello

A person can't have both Disability Living Allowance AND Attendance Allowance. DLA is for people under 65, but if it is being paid before 65 then it can carry on. AA is for people over 65, there are different criteria - no mobility allowance because you're not thought to be still driving, and no criteria for cooking yourself a meal, you're not thought to be still wanting to live independently, it's all about 'care', help you need to do basic things. However, both DLA and AA are very useful benefits because they are not taxable and not means-testable.

I am afraid I take a fairly hard line about 'family birthdays etc'. When one of them chooses to remember MY birthday, Christmas etc, even with such a small thing as a card or a bunch of flowers, then I may reciprocate. Up until then they can whistle. My birthday last month was remembered only by some good friends, by my DH and my brother but - with the honourable exception of my stepdaughter-in-law - none of the younger family members chose to commemorate it. Not even with a text!

LOADSAMUSIC

My information is slightly differant.My Mother is now 85 and has been recieving benefits since before her 65th birthday. The feedback I have got from various Departments indicate that BOTH the benefits she was previously recieving will be re-instated...My understanding is that the mobility allowance has nothing to do with driving...... I quote '' To qualify for the mobility component you must not be able to walk at all or you can only walk short distances before having to stop, for example, due to pain, breathlessness. It is also for people with a severe learning disability who are very unpredictable or for those who need someone with them outdoors.'''
I will post the outcome of the claims here for other peoples reference.

LOADSAMUSIC

Just a quick update. I have heard from the DWP and they have confirmed that they will pay Attendence Allowance at the higher rate.Her mobility allowance has never stopped being paid since she went into the care home.......so she will be recieving BOTH BENEFITS....

bryanb

LOADSAMUSIC wrote: »

Just a quick update. I have heard from the DWP and they have confirmed that they will pay Attendence Allowance at the higher rate.Her mobility allowance has never stopped being paid since she went into the care home.......so she will be recieving BOTH BENEFITS....

My mother is receiving both these benefits, she is LA funded, these benefits were ignored for the purposes of assessing her contributions for care. She therefore retains £20 approx personal allowance plus AA & DLA. Not sure if the rules have been applied correctly, but I am absolutely sure that the benefits were properly declared ( I declared them in writing on the financial assessment forms) On this basis I do not intend to rock the boat!

LOADSAMUSIC

During the 12 week period before my Mothers property entered the equation her contribution was higher because of the 2 benefits.....When 1 stopped after 28 days her payment to the LA decreased.....You are lucky at the moment......but you may have to pay it back when they realize their mistake, perhaps....

LOADSAMUSIC

Found this page which maybe of help to you...
Residential Care

This information is correct as of April 2008.

Moving into a registered care or nursing home will affect many of your benefits. This guide looks at a range of factors that may affect your finances.
Those benefits that are most commonly affected are:

• Disability Living Allowance Care Component/Attendance Allowance
• Pension Credit/Income Support/Income-based Jobseeker’s Allowance
• Housing Benefit/Council Tax Benefit
• Constant Attendance Allowance/Exceptionally Severe Disablement Allowance
• Special Help for War Pensioners

It is worth remembering that where the Local Authority funds an element of your package, you will be left with a Personal Expenses Allowance of £21.15, all other income (including benefits) being taken as a contribution to your fees. Only if you are funding the accommodation and care from your own resources will you be able to retain your benefits in full. NHS Funded If your accommodation and maintenance is wholly NHS funded as part of an aftercare package (sometimes known as ‘continuing care’) then you will be treated as a hospital in-patient and the special rules for payment of benefits in hospital apply. Although you will not be expected to pay any fees, benefits reduce substantially.

Attendance Allowance and Disability Living Allowance are removed after 28 days, which immediately affects entitlement to Income Support or Pension Credit Severe Disability Premiums. Disability and Enhanced Disability Premiums are only removed after 52 weeks. If you are a carer in receipt of Carers Allowance, the benefit will stop after the person you care for has been in care for 28 days. Any Carer’s Premium paid as part your means-tested benefits will run-on for 8 weeks after Carers Allowance is removed.