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Care home fees


ilovemyheckler
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I appreciate that this may not be the best place to seek advice but you never know.

This morning I had a letter from my mum's care home saying that they were increasing her fees by £1,000 per month to nearly £6,500 per month!

Is my mum allowed to "gift" any of her money while she is in the home or is it now effectively "ring fenced" to pay for her fees?

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No, she is entitled to an amount of money - £24,000 I think - the rest basically is owned by the care home/local authority. Any gifts made from her now, the LA will come after IT once she passes into their financial remit.

Nowadays, you have to be really early with your planning as the 7 year look back has been abolished. So if the LA thinks that money was gifted at any point to try and sidestep them getting their mitts into it, they will come after it and they employ teams of lawyers for this directly... So if your parent was diagnosed with an illness, and then they gifted money to a child, and 15 years later ended up in a home and will need LA to fund it - they will come after it and quote the fact that they were gifting it to swindle the LA.

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There are a couple of issues here. Are you saying that it is likely her capital will go below £23,250 (capital limit) and you would be looking to social services to fund care in the future? If so, it will then centre around as to whether by gifting money away there was deliberate deprivation of capital with a view to securing local authority funding. 

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private care homes are stupidly expensive typically £1200 to £1500 per week, and i think the savings limit is currently £8,000 the LA can take all assets, cash and property and as others have said too late to gift money away as they can see that as avoiding paying for the care and then pursue recovery of the money and apparently with no time limit.
Plus any gift above I think £3000 per tax year is taxable.

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1 hour ago, Walker570 said:

A very interesting question. I look forward to the PW Massif coming up with the answer.  When is your money not your money basically.

And this is now where we are at if you have worked all your life and been a bit frugal so you have a bit in reserve for your later year's it can all be taken away.

If you have never worked and had a life on benefits ( and there are far too many that have no interest in working because they know the benefits will keep coming ) everything will be paid for you, it makes you wonder why anybody bothers to go to work.

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1 hour ago, ilovemyheckler said:

I appreciate that this may not be the best place to seek advice but you never know.

This morning I had a letter from my mum's care home saying that they were increasing her fees by £1,000 per month to nearly £6,500 per month!

Is my mum allowed to "gift" any of her money while she is in the home or is it now effectively "ring fenced" to pay for her fees?


Does your mum have a cognitive impairment?

Is she able to generally make her own decisions? 
 

What soft of gift did you have in mind? 
 

How much, who to, and what for? 
 

I think you’d have a hard time from the LA for sure. 
 

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

 

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24 minutes ago, B725 said:

And this is now where we are at if you have worked all your life and been a bit frugal so you have a bit in reserve for your later year's it can all be taken away.

playing devils advocate, is that not why you have saved for rainy days they being days you need to pay for care either in a care home or care within your own home but your freedom of choice, assuming you have no family able to care for you.  Or should the state care for you from birth to grave however they decide best, regardless of the situation or your personal wealth.

 

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2 hours ago, ditchman said:

christ on a stick what sort of care home is she in at £6500/mth ?

I recon you could be well looked after in the big hall near you now that Lizzy have passed on for a lot less than that , Have a word with Charles , he is coming up your way for Christmas and maybe a couple bottles of pure ginger put in the palm of his hand should square the deal :drinks:

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Mate went through similar a few years ago now. 
Both parents needed round the clock care and the cost was 1500 each per month. I’m not sure how he did it ( probate?) but with the help of a solicitor sold their house to pay for their care and bought another house before their care went with his inheritance. He still has the house which he rents out. 
Another mate in very similar circumstances packed in full time employment to become his parents full time carer. His parents stayed in their home until their time was done, and it didn’t cost him anything. 

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1 hour ago, B725 said:

I have no problems with contributing to care if I should ever need it, but saving a bit over the year's is so me and the Mrs don't have to struggle with bill's. It's the lazy one's who have milked the system all their life that grates me.

My feelings exactly. My parents should be able to gift me the house when ever they need without a worry as it’s their money .

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