Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
may I ask whether any form of trust was established when the property was purchased which provided your mother-in-law for a life interest in the property or was no such arrangement contemplated or put in place please?
Could I also ask whether either you or your wife are over 60 years of age or if not with any other relative over the age of 60 lives with you?
As far as I can recall no trust of the type you describe was considered. I am 70, my wife is 58. My mother-in-law is 84. Obviously the percentages we all own in the property were correctly registered at the time of purchase/
thank you. On that basis, the property will be disregarded for capital means testing purposes by the local authority in respect of any care fee assessment
the reason for this is that if a relative over the age of 60 years lives with the individual who is being means tested in a property in which they have an interest that individuals interest in that property is disregarded for the purpose of means testing
the local authority can still take into account all of your mother-in-law savings and any other assets in a means testing assessment and also any income from pensions and so on your mother-in-law receives however based upon what you say, her interest in the property will be disregarded
Thank you Joshua. That is most reassuring. Mother-in-law does receive small pensions and, as I have said, has a small amount of savings, but the property was her biggest worry - and ours!
A pleasure. There is a very useful organisation www.symphonia.co.uk that can provide support in respect of care fee funding if your MIL wishes to potentially see if there are any other options besides what the council offer her - this does not impact on what I have said above - i merely may provide some other options to consider which the council may not mention.
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