Paying for residential home care

[nathan060187]

Three years ago my mother (who is now 79) put my name on the deeds to her bungalow so that we owned it in joint names. If mum needed to go into residential care would she have to sell it to fund her care and what happens to my half? She also has two bank accounts and has made them into joint accounts with me (so I can have access to funds to pay her bills as she cannot make the trip to the bank through infirmity). Would these be commandeered too?

[ubasses]

The local authority could decide that such a transfer of ownership was a deliberate attempt to reduce the value of assets for means-testing and could overlook the fact that a share of the property had been transferred to you. This would leave you in the same position as you would have been had you done nothing. Problem is the time scales, 3 years will probably be seen as trying to avoid paying fees. They would look at all her assets including what is in the bank and income from pensions. She would be entitled to claim attendance allowance once she needed full time care which would provide a little extra each week depending on whether it is at the lower or higher level. Unfortunately I think you will end up having to sell. If she has a good income you could perhaps rent it out to make up the difference. Speak to the NHFA they will discuss ways of investing to get the maxiumum income from the house money and preserve as much capital for her which you would then inherit.

[nathan060187]

Thanks Ubasses.

Mum is already claiming Attendance Allowance and even with this she has less than £1000 per month coming in including the small pension from her last job and the half pension coming from her late husband's job. Out of this, the same as everyone else, she has to pay the Community Charge and all the other household bills. She has a few savings, less than £10,000 though.

Also, if the house had been in joint names for more than 7 years, does this change things?

[Buenchico]

Some relevant links, which might help:
http://www.direct.gov...CareHomes/DG_10031523

http://www.ageuk.org....ent-residential-care/

http://www.ageuk.org....-care-home-provision/

Chris

[bednobs]

not really. When the council are looking to see if assets were disposed of to avoid care home fees, there's no time limit as to how far back they can consider. The 7 years you are thinking of applies to inheritance tax

[ubasses]

Probably not, there was no set term mentioned in the paperwork I had but I was asked if Mum had given any assets away in the last 20 years.
As soon as she went into care she would be exempt from Council Tax on the house, and from what you say she would qualify for the 12 week house disregard which means social services would pay, but would still take her pensions into account. I really sympathise with you having gone through this twice with both my mother and mother in law. I got more advice with my Mum as like yours she had no assets apart from the house, because my mother in law had savings, social services did not want to know at all.
Options open to you could be to defer selling the house, a charge will be taken against the property and all the money claimed when she sadly dies.
Sell the property and purchase an annuity which will pay the fees and invest the rest.
The NHFA I mentioned earlier is the Nursing Home Financial Advisors and is part of HSBC, you may find a fact finding meeting with them helpful just to think through your options. It would be free but don't forget that at the end of the day they would be looking for your business. They are Independent Advisers by the way.
Hindsight is a wonderful thing (and I am making assumptions here) but if your parents owned the house as tennants in common and your dad had left you his half in his Will I am pretty sure they could only have claimed your Mums half.

[nathan060187]

Thanks so much for clearing a few things up for me. I am touched with the time and effort you have taken in answering my question.

[BRIAN58]

Do you live in the property with your mother. If you do you may not have to sell. Look at Age Concern factsheet 38.
If not it may be worth looking at your land certificate / deeds if the property is unregistered. My house in in joint ownership.
The land certificate is 35 years old. It says no sale or mortgage of the property without the consent of the joint owner.
I know most modern land certificates add ''except by order of the court''.
I do not know if a court could order a sale of my house as it does not have that clause.

Brian

[nathan060187]

Thanks for your comments Brian.
I do not live in the house with my mum. She lives alone. After being close to death in early 2007 but since making a brilliant recovery she said she wanted to put the house in joint names with me (as her only child - I'm 57!). She did the same with her bank accounts. She wanted to avoid any fuss she said when she did die. We went to the Land Registry in Nottingham together to do this. We filled out the forms and handed them over at the counter. We have never actually seen the deeds but just received a letter a couple of weeks later saying that this had been done. Mum has also made a Will leaving everying to me. My step-father died the year before leaving everying to mum. He did not leave a share of the house to me. This last sentence is in answer to Ubasses previous comment.

Thanks again for everyone's help.