Paying For Nursing Home Care

[catsrcool]

I have taken an equity release on my property. The Equity release contract includes the provision that if I have to go into a Nursing home for more than 6 months the house will have to be sold to repay the equity company. This will leave a cash balance. Will I have to pay for the care from the balance or will my wife have a right to the money first. We were not married at the time of the equity release and her name can not and is not on the deeds. She is however my sole beneficiary in my will. Thanks in advance.

[murraymints]

you need proper legal advice..normally a wife or dependant can stay in property without it being captured by home..however your equity release agreement supercedes that .... you are allowed to have so much money in bank..it may well be different from area to area how much...perhaps check with CAB or local authority....

[woofgang]

I agree, get proper advice on this one as its complicated. There is the additional complication that depending on your current age/state of health, you may be held to have deliberately divested yourself of assets and therefore the entire value of the house can be taken into account when the Social Services make their financial assessment.

[catsrcool]

Thanks for the replies. I have had some proffesional advice and it seems to be fairly complicated.
In brief I only have to go into a nursing home if I need more care than can be provided at home and only with my consent unless I am deemed incapable of making a choice.
As for the house it would have to be sold if I was in a nursing home for more than 6 months.
The proceeds from the sale would first pay the equity release the balance would then be assessed as 50% mine 50% my wifes but she would probably get more because she would have to be housed.

[woofgang]

all that is fine cats...but you have to consider this too
http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS40_deprivation_of_assets_in_the_means_test_for_care_home_provision_fcs.pdf?dtrk=true

[murraymints]

normally a 7 year disposal time here..ie if you gift or divest yourself of assets within 7 years of going into care..it can be recaptured ! (Scotland ) and they do !!!

[catsrcool]

Thank you I have already read the document and at the time I took the equity release I did not or do now have a medical condition that means that I will need care home help in the future. So I can not be accused of deliberately reducing my assets because I need to go into care any time soon. The situation may of course change in the future but as far as I can see it can not be applied retrospectively. The original post was in response to my wife's request to find out what would happen IF I had to go into a nursing home.

[woofgang]

then it sounds like you are covered....