This is a note from a friend of mine who has expertise in this area. Not for a second am I suggesting that East Sussex would make the same serious mistakes, but it is worth a check, ideally before you go into care!
Should the Council be Contributing to my Care Fees?
Mr and Mrs P both in their 70’s, jointly own their home. She has been in care for almost two years, and Mr. P has recently started receiving domiciliary care. Mrs P’s residential care had been arranged privately, funded from her personal savings of just over £30,000 and joint savings, which totalled £80,000 but is now reduced to £20,000. Savings are now below £23,250, and an application has been made to the local authority for financial help with care fee funding. Mr. P has not yet requested an assessment of his own needs by the council.
But who has power to discuss care fees?
A quick aside from Steve, The Professional Will Writer. ONLY the individual in care has the right to discuss care fees – and if they have been deemed to lack “mental capacity” only those they have chosen to be their Attorneys will be able to discuss the matter and obtain the necessary information. To do this, both types of Lasting Powers of Attorney will be needed – Finance to get and discuss that site and pay bills. Welfare to discuss how and where they are kept and how they are treated. LPAs are important at 18, but if long-term care is needed, they are crucial. My number is 01323 766766 and Lasting Powers of Attorney are not something that can be left to the last minute, or the Court of Protection take over!
Back to the original problem: the Social Worker giving incorrect advice on Care Fees:
This illustrates the folly of not seeking independent professional advice when residential care is needed. Since April 2023 self-funders have had the legal right to ask for local authority assessment in securing placement appropriate accommodation. If a full NOT light-touch assessment is requested, it will define what financial individual and joint resources should be used for care fees. In this instance it would have shown Mrs. P’s savings as being £70,000 not £110,000, Mr. P’s share of joint savings would now be £40,000, rather than £10,000 and Mrs. P would have a personal budget to help fund care fees.
To make matters worse, the social worker has recently advised Mr and Mrs P unless they can pay third top-up fees to fund the shortfall of Mrs P’s care fees, they will need to raise money through equity release to fund the difference. The social worker appears to have omitted to mention the local authority may in certain circumstances be legally obliged to increase their budget to meet the shortfall, and that the property should be subject to a Mandatory disregard at assessment, in plain English, not available for care fees.
Their application for an equity release loan was rejected because the property is owned as tenants in common with a restriction registered accordingly. Had that restriction not been there, the loan may have been approved, encumbering Mr. and Mrs. P’s property unnecessarily and giving then the funds to pay additional care fees which otherwise would have been the responsibility of the council to fund.
The biggest problem is families eager to get loved one’s appropriate care often when they have funds to do so, agree placements directly with care homes who are not required to explain what assets should be available to meet their fees. Only once local authority help is sought do finances get considered, by which time many thousands of pounds may have been unnecessarily paid out in care fees.
Please give me a call if this is relevant to you or a relative and I will put you in touch for an assessment once I have a few details.
