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Deprivation of assets

edited 30 November -1 at 12:00AM in Marriage, Relationships & Families
85 replies 4.8K views
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  • bouicca21bouicca21 Forumite
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    In my somewhat limited experience the cost of care is such that that final 26k would be eaten up very quickly, even just as top up. I pin my own hopes on a. keeping my marbles b. Suicide and if that fails c. Hoping that the stats are right - they say residential care average is only 2 years, so with luck there will be enough money for somewhere nice.
  • onwards&upwardsonwards&upwards Forumite
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    lisyloo wrote: »
    Sorry I want totally clear.
    You are not denied it by the council.
    You will be denied it by private businesses who won’t take you on.

    You need a source if funds that will last the rest of your life
    E.g. a family member acts as guarantor.

    A private pension lasts the rest of your life but apparently you aren’t allowed to use it to pay to stay in your chosen care home!
  • lisyloolisyloo Forumite
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    If you have a house worth, say, £300,000 (which is not that unusual with the way house prices have gone crazy) and you pick a care home with fees of even £1500 a week, which is quite high I think, then your house capital alone will pay for 200 weeks, nearly 4 years, without even taking into consideration any other savings or private pensions.

    If it was me or someone else I cared about I wouldn’t compromise based on the chances of living longer than the cash would last!

    In your situation I’d consider an annuity.
    Pay a lump sum in return for an insurance that pays the fees until you die.
  • lisyloolisyloo Forumite
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    I’m not talking about leaving your house/flat though i’m talking about having to move from the care home you chose (and can still afford to pay for) to one you didn’t choose.

    If you are expecting tax payer help, then you’ll have to move somewhere the taxpayer is prepared to fund

    OR

    Provide a top up from someone who agrees to pay it for as long as necessary.

    Your £23.5k (or whatever the threshold is) is not enough to pay for your care as long as necessary, so the care home will not agree to it.

    If you are already in the home when this occurs I do not know at what point they kick you out.
    But if you were at the point of entry they will not accept £23.5k as a sufficient lump sum and will not take you on. The private home doesn’t want the liability, the local authority doesn’t want the liability.

    Clearly being there already is different to entering and I’ll be honest and say I don’t know at what point they kick you out if you are already there but for entry it’s an insufficient level of funds.
  • edited 19 May 2019 at 11:51AM
    lisyloolisyloo Forumite
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    edited 19 May 2019 at 11:51AM
    A private pension lasts the rest of your life but apparently you aren’t allowed to use it to pay to stay in your chosen care home!

    If you have a private pension that allows you to stay in a home of your choice then you can do so.

    But if you have say £200 per week private income you can NOT use that £200 per week for a luxury upgrade.

    If the basic care home is £500, then you pay £200 and the local authority pays £300.

    You can NOT use it to top up to a £700 luxury care home and expect the tax payer to pay £500.

    The tax payer will not pay for luxury.
    LA are really hard pushed with increasing levels of elderly and austerity imposed upon them.

    Are YOU prepared to pay higher tax levels?

    So no you cannot get luxury and choice if you want tax payer funding.

    If you don’t require tax payer funding you can have exactly what you want.
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  • MojisolaMojisola Forumite
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    But you are denied the right to pay top up fees from your own funds. I presume this is the case even with a private pension income that could cover it?

    Once the council starts funding your place in a care home, you won't have access to that private pension - you have to pay all your income to the council apart from the set pocket money.

    The council is obliged to recoup as much of the money as they can that they are spending on your care home.
  • onwards&upwardsonwards&upwards Forumite
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    lisyloo wrote: »
    If you have a private pension that allows you to stay in a home of your choice then you can do so.

    But if you have say £200 per week private income you can NOT use that £200 per week for a luxury upgrade.

    If the basic care home is £500, then you pay £200 and the local authority pays £300.

    You can NOT use it to top up to a £700 luxury care home and expect the tax payer to pay £500.

    The tax payer will not pay for luxury.
    LA are really hard pushed with increasing levels of elderly and austerity imposed upon them.

    Are YOU prepared to pay higher tax levels?

    So no you cannot get luxury and choice if you want tax payer funding.

    If you don’t require tax payer funding you can have exactly what you want.

    But you could take £500 from the taxpayer and have a family member pay your top up of £200?
  • onwards&upwardsonwards&upwards Forumite
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    Mojisola wrote: »
    Once the council starts funding your place in a care home, you won't have access to that private pension - you have to pay all your income to the council apart from the set pocket money.

    The council is obliged to recoup as much of the money as they can that they are spending on your care home.

    So where does thing of ‘you can’t pay your own top up fees’ come in?

    I just don’t get it!
  • MojisolaMojisola Forumite
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    But you could take £500 from the taxpayer and have a family member pay your top up of £200?

    Only if you didn't have any other income.
  • AnotherJoeAnotherJoe Forumite
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    maman wrote: »
    Surely, if the owners of the home were agreeing that facility (to raise the money) they knew she had sufficient assets so that was a form of assessment in itself.


    I guess so, but they just said "you dont have to pay straightaway we wont send a bill until 6 weeks have passed." They also had no idea what the value of the house was. And even if they did, for all they knew it had been equity released or had a mortgage on it with very little equity.
    "For every problem,  there is a solution that is clear, simple and wrong"  HL Mencken. 
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