Money / Legal advice please

DanBoro4499

Well-known member
Bit of a grim topic but my dad passed away last year, and unfortunately my mam suffers from dementia, so her situation at home is slowly becoming unattainable.

She has quite a bit of savings and the mortgage is paid off on her house.

I think its fair to say that at some point (possibly sooner rather than later) - she may need to go into a home. Naturally, myself and other family members (brother/sister) don't want to lose all of that money to the government (especially this lot).

Has anybody been through this situation? I guess what im asking is....is there anything I can do with that money to ensure the goverment don't get their hands on it?

I'm a bit out of my depth with this - so thanks in advance.
 
You need to see a solicitor and get a power of attorney sorted.

Power of attorney is sorted star, but i'm not sure how that would help prevent the govermnment getting their hands on it?

I don't know if the solicitor we had was a bit of a jobsworth, but she said things like signing over/sharing ownership of her house, or moving large sums of money would be suspicious when the time came for her to go into a home.
 
You need to see a solicitor and get a power of attorney sorted.
This 100%.. it seems from your post your Mum sadly already appears very likely to need care due to existing symptoms. The problem you have now is that Anything you do with her savings/wealth would likely be seen as deprivation of assets to avoid care costs and would not be acceptable when care costs are calculated.. it’s a terrible situation to think a lifetime of savings can be eaten up in such a way but sadly think you may struggle to get round it. Further legal advice would be your best way forward I suggest.
 
Sorry I don't know much about this but I was under the impression that this social care levy we're all paying would put a cap on the cost payable in circumstances like this?
 
Sorry I don't know much about this but I was under the impression that this social care levy we're all paying would put a cap on the cost payable in circumstances like this?
My understanding is it puts a cap on the care element but not on the ‘accommodation/meals part.. and it’s that part which can rack up very quickly
 
Power of attorney is sorted star, but i'm not sure how that would help prevent the govermnment getting their hands on it?

I don't know if the solicitor we had was a bit of a jobsworth, but she said things like signing over/sharing ownership of her house, or moving large sums of money would be suspicious when the time came for her to go into a home.
As teesste has said it wont. Wife went through this with inlaws.
 
Not sure if it’s too late to put house in trust. Effectively giving you the house but you don’t get it until you mam passed away.

Know the rules have changed around this but not sure on what length. Legal advice to see if that is an option

Probably falls under depravation of assets
 
If you try and remove funds and hide them away, gift to the grandkids etc it will be classed as deprivation of assets as previously mentioned. You will have to pay for her care until I believe £20k remains, the council will then pick up the bill. The council have the ability to check all accounts held in your Mum's name and can go back to follow the money.
The way I look at is to get her in to a 'good' home with the right care and where she is comfortable. Then the system will cover the costs once the money has gone.
I saw a change for the better in my elderly Aunts demeanor once she excepted her situation in a care home, she had dementia too. She was settled and comfortable in her final days. I couldn't put a value on that.
 
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The way I look at is to get her in to a 'good' home with the right care and where she is comfortable. Then the system will cover the costs once the money has gone.
I saw a change for the better in my elderly Aunts demeanor once she excepted her situation in a care home, she had dementia too. She was settled and comfortable in her final days. I couldn't put a value on that.
Nice words mate 👍🏻
 
I don't know if the solicitor we had was a bit of a jobsworth, but she said things like signing over/sharing ownership of her house, or moving large sums of money would be suspicious when the time came for her to go into a home.
I'm afraid your solicitor is right. We as a family went through this when my father unexpectedly died before my mother who was i the early stages of dementia. Fortunately we'd read up a little about the potential losses re care homes and dad managed to gradually give us all little 'gifts' for birthdays, Christmas etc. It may or may not have been strictly legal as the rules are complicated involving time limits and limits on the amount of such gifts that only an expert can advise you on. I think at the time there was a limit of something like £21,000 capital after which you would be expected to pay most of the costs.

If your mother is not likely to go into a home for a few years you should be able to come up with a plan with the help of an expert. If you want free advice on where to find such an expert and get a rough idea of what your options are then have a word with the Citizens Advice Bureau.

Good luck.
 
Pay for a funeral in advance (about £4,250) I believe is allowed.

Possibly spend some money on improving the house for your Mum while she lives there including specialist adaptions.

Take her on a nice holiday using her savings.
 
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I believe that from setting up a trust the wait is 7 years before it is seen as not trying to hide away assets and the person setting up the trust must be of sound mind and body when the trust is set up.

Along with Redwurzel's idea about the funeral in advance (great shout btw), I would also add that you can legally gift money to family members up to a total of £3000 per tax year (3k total and not each). There are a few other cash gifts such as Christmas, wedding etc which can legally be done each year also.
 
I believe that from setting up a trust the wait is 7 years before it is seen as not trying to hide away assets and the person setting up the trust must be of sound mind and body when the trust is set up.

Along with Redwurzel's idea about the funeral in advance (great shout btw), I would also add that you can legally gift money to family members up to a total of £3000 per tax year (3k total and not each). There are a few other cash gifts such as Christmas, wedding etc which can legally be done each year also.
There is no 7 year rule. If his mother had dementia then setting up a trust will virtually guaranteed to be seen as deprivation of assets. There is no time limit so they can look back 20 years and ignite obvious due to anything known they will do you for it
 
There is no 7 year rule. If his mother had dementia then setting up a trust will virtually guaranteed to be seen as deprivation of assets. There is no time limit so they can look back 20 years and ignite obvious due to anything known they will do you for it
I think maybe Ayresome was getting mixed up with the 7 year Potentially Exempt Transfer rule which relates to Inheritance Tax rather than Care Home costs
 
I believe the establishments of family trusts is being stopped.

Didn't the rules change recently to say there was a maximum someone would be pay over their left time and then the State would pay.
 
I believe the establishments of family trusts is being stopped.

Didn't the rules change recently to say there was a maximum someone would be pay over their left time and then the State would pay.
They are introducing a cap of £72,000 next year I think to cover the care side of things but sadly this does not cover the ‘board and lodgings’ bit.

I’m sure I read a case where an elderly person took their carer off on a long cruise because it was cheaper than going in a care home for the same length of time!
 
Once your mothers savings have been swallowed up the council will take over payments until you can sell her property. You will then have to pay back every penny until around 23 grand is left and then they will take it over again. I know because I am currently going through this with my mother and trust me mate, it's painful and so bloody annoying. You have my sympathy mate, take care.
 
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