Will My Mum's Home Being Used To Fund Her Care Home Fees?

[Ladybyrne]

About 20 years ago my parents transferred ownership of their home jointly to me and my three siblings on the understanding that they could carry on living there as long as they needed to. They wanted to do this to protect their home in the event of them needing to go into Care. Sadly Dad has died but Mum still lives there. However, at 89 she is now suffering from dementia. We are hopeful that with our care she can carry on living in the home she loves, but have just started to realise that even though the house is now in our names, it may still have to be sold and used to fund Mum's care if she becomes too ill to live on her own. Is this really the case?

[Canary42]

No. 20 years well above the limit (I think it's 3 years) for back-dating claim.

[Kathyan]

I thought it was 7 years?

[Ladybyrne]

Thank you very much Canary42, Triggerhippy and Kathyan for your speedy replies. Looks as if we should be OK.

[bednobs]

there is no "limit" when it comes to deprivation of assets to avoid NH fees

[buildersmate]

Advice seems to be true, though you won't avoid having the house included in the assessment of assets for the purposes of valuing the estate of Mum when it eventually comes to that. The house was a 'gift with reservation' to the siblings, so it gets included in the estate for IHT assessment purposes.

[bednobs]

PS dont ever mention to anyone about their intent to avoid care home fees being the reason to transfer the house - Intent is one of the major tests they use to see if an asset can still be counted (ie if the sole or main reason was to avoid fees)
Age uk are good at this stuff
from one of their factsheets:
Assessment of Resources Regulations place no set time limit beyond
which the local authority has to ignore transfers of assets. If a transfer
occurred more than six months before the resident applies for assistance the
local authority can still treat him or her as having deliberately deprived
themselves of that capital under the charging regulations

[Ladybyrne]

Thank you bednobs and buildersmate. Looks like I had better seek further advice perhaps from Age UK or Citizens Advice.

[Cathyhuns]

I can sympathise with your wish not to sell your mum's home, but to put it bluntly "why should the state pay for an ill person's care so that their children can inherit their house, when those same children won't care for the parent themselves"?