Help please to work out care home fees - thresholds and calculation/formula

[Vitamin33]

Hello again
This query is different from yesterday's. I just got home from registering my mum's death (long drive as I had to go to Havering while I live in Eastbourne) and registrar has recommended a firm of funeral directors and sent them my mum's details, and I am to call them tomorrow to arrange funeral and discuss package, etc. But if I personally have to pay for my mum's funeral it will be a far more frugal affair than if the money can come out of her savings. While I am not yet sure (have to get bank statement from post office) how much money my mum had when she first went into care, it could have been in the region of £28K, and on that basis from what I've read she would have had to fund her own care. But does that mean the council will be able to take everything in her bank accounts? The council have been taking approx £680 per month toward her care costs, and I have told them we can retrospectively work out what my mum's contributions should have been once we know exact figures and that whatever she owes will be paid out of her estate. I have read that above £23.5k a person must pay full costs of care themselves, but last year I had a brief chat with Help The Aged and it sounded like they were saying that she would pay full costs of care until her savings went below £23.5k then her contribution would be reassessed/revised, and the same would happen again when her savings went below £14k. However, I also spoke about a year ago to free legal helpline at RAC and the lady I spoke to basically said the council could take everything in my mum's accounts if she had more than £23.5k to kick off with. As I have to speak to funeral directors tomorrow I am trying to get an idea as to whether she will be left with anything, i.e. enough to fund a decent funeral. I will try and contact Help The Aged in the morning but I recall last time itook a while to get through, hence this post and request for help. Thank you to all.

PS PLEASE NOTE My mum had no other assets whatsoever, not even a wedding ring. All her worldy goods consist of what's in her two bank accounts, and the only reason she has two bank accounts is because the Post Office stopped providing banking services for pension money, so she opened a Lloyds account.

[twohoots]

Sorry for your loss. Have you checked to see whether your Mum had a life insurance policy? My Mum had little in the way of savings but she paid a few pence a week for donkeys years into a policy and that easily covered the cost of her funeral.

[Vitamin33]

Sorry for your loss. Have you checked to see whether your Mum had a life insurance policy? My Mum had little in the way of savings but she paid a few pence a week for donkeys years into a policy and that easily covered the cost of her funeral.

Thank you for your kind words, TwoHoots, and for the suggestion. I doubt my mum had any policies as she didn't like paperwork but you never know, so I will check with the service for finding lost accounts just to make sure.

[JJW]

Vitamin33

Issue the funeral bill to her bank to pay direct.

There will be at least 14k in the account, as that’s the figure they stop charging care home fees. Plus between 14,000 and 23,250 it is minimal contribution approx £36pw.

[Vitamin33]

Thank you very much, JJW. What you say re £14k comes as a very big relief, appreciate you taking the time. Lloyds paid funeral costs directly, funeral this coming Tuesday.

[Getitdone]

I wanted to add that anyone residing in a residential care home will always be expected to use all of their income from pensions etc , minus about £25 per week for personal items/ services eg toiletries , clothing etc , to fund their care.
I believe that for the purposes of a local authority financial assessment if the person has a spouse then 50% of any occupational or private pensions can be discounted. I've read different information regarding whether the LA will do this automatically or whether the person receiving care ( or the person acting legally for them ) has to make this request.

If there's a shortfall ie fees are higher than the income taken into account then above the £23,500 assets threshold the person will be expected to pay the full remaining amount.
Once savings fall below the threshold the amount payable on top of any income they use a calculation to decide how much is payable.
Any property owned will be taken into account when calculating assets. How and when assets in the form of property are required to be used to fund care is more complicated and depends on individual circumstances.

[Vitamin33]

I wanted to add that anyone residing in a residential care home will always be expected to use all of their income from pensions etc , minus about £25 per week for personal items/ services eg toiletries , clothing etc , to fund their care.
I believe that for the purposes of a local authority financial assessment if the person has a spouse then 50% of any occupational or private pensions can be discounted. I've read different information regarding whether the LA will do this automatically or whether the person receiving care ( or the person acting legally for them ) has to make this request.

If there's a shortfall ie fees are higher than the income taken into account then above the £23,500 assets threshold the person will be expected to pay the full remaining amount.
Once savings fall below the threshold the amount payable on top of any income they use a calculation to decide how much is payable.
Any property owned will be taken into account when calculating assets. How and when assets in the form of property are required to be used to fund care is more complicated and depends on individual circumstances.

Thank you, GetItDone, this is really helpful and tallies with what I recall Age Concern said when I spoke with them last year. My mum's funeral was yesterday, hence late reply. I hope you have a great Christmas