How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Clare Your Own Question

Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 33951
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
13262538
Type Your Law Question Here...
Clare is online now

My 89 year old Mother took out an Equity Release plan a few

Resolved Question:

My 89 year old Mother took out an Equity Release plan a few years ago. She has now gone into Residential Care, and the local authority are asking me (I have power of attorney) to fill in a form in order that her financial contribution can be assessed. They are asking if there is such a plan, and details of it. Are they entitled to have the details about this? Are they likely to ask her to pay any of the money back (not that she can) if she can't prove what she spent it on?
Submitted: 1 year ago.
Category: Law
Expert:  Clare replied 1 year ago.
HiThank you for you questionMy name is ***** ***** I will do my best to assist youHow much was involved and to the best of your knowledge how was it spent?Clare
Customer: replied 1 year ago.
She took out just under half the equity; this being around £60k. She had a new kitchen fitted, a new boiler, new carpets throughout, windows painted and general work to the property, plus she gave me and my brother £5k each.
Expert:  Clare replied 1 year ago.
How long ago were the gifts made?
Customer: replied 1 year ago.
just over 4 years ago
Expert:  Clare replied 1 year ago.
Hi
How much is the current equity?
Clare
Customer: replied 1 year ago.
I'm not sure, but I would imagine it's touch and go as to whether she would fall below the threshold of £23,500?
Expert:  Clare replied 1 year ago.
At the time of the equity release was it considered likely that you mother might need to go into a nursing home in the future?
Customer: replied 1 year ago.
No, not at all. She was fit and well and wished to remain independent; albeit in the early stages of dementia (tho with a care package in place). The offer for her to come and live with me was always on the table (for the last 20 years or so after my father died) but she remained indignant. The nursing home thing only came about after a neighbour discovered she'd had a small stroke, and after a spell in hospital they put her into respite care. I had issues with her care package anyway, but after a while when the social worker came to assess her in the home, they decided that she was not going to be able to return home alone with me being so far away (in Lincolnshire), being relyant on neighbours, and after I made a formal complaint about the care she was (not) receiving at home. Also her dementia had got worse.
Expert:  Clare replied 1 year ago.
Sorry - d o you mean the dementia had already been diagnosed when this took place?
Customer: replied 1 year ago.
Yes, she was in the early stages, but with support and a care package in place at home, she was doing fine. I should also say that when she went into hospital, they sent her into respite care for a couple of weeks as clearly she had been going down hill one way and another. After the 2 weeks, a social worker came to assess her in the home and it was then decided she needed 24 hour care and would not be allowed home. After a while, my Mum was getting restless and kept asking/demanding she be allowed home. Clearly this was a problem as I'd been advised to put her house on the market in order to pay for fees, so I requested an official assessment under the Deprivation of Liberties Act. They have never had the courtesy to get back to me and let me know the outcome, but I presume the decision remains the same. By the way, the Equity Release plan was her idea, and with only a little assistance from me, she dealt with it herself.
Expert:  Clare replied 1 year ago.
HiI am afraid that they are entitled to details of the plan - and how the money was spent.The only expenditure that is at risk is the gifts made to you and your brother.The fact that the dementia had already been diagnosed at that time means that the LA are going to treat this as "deprivation of assets" and will assess her onthe basis that those funds were still available to her.It would be very hard, if not impossible to oppose thatI hope that this is of assistance - please ask if you need further detailsClare
Customer: replied 1 year ago.
Does this mean, for instance, if the property is sold for £130k and there is only £23,500 left that she (or someone) will have to continue to pay fees for her? How can we do that if we do not have any money? And up to what amount? How much will the LA delve into what she has spent the money on, as I doubt whether there will be many/any receipts around to prove what she's spent it on?
Expert:  Clare replied 1 year ago.
q
Expert:  Clare replied 1 year ago.
How much is left in the house?
Customer: replied 1 year ago.
At this point, I can only gestimate as I am unable to get in touch with the provider. Because the interest rolls up, there will be about £35k worth of equity left. I have looked at the plan and also, I can not see anywhere where it outlines what the money was intended for!?
Customer: replied 1 year ago.
You say the only money that's at risk are the gifts to me and my brother, yet on the next line you say they would assess her as if funds were still available. Do you mean ALL the funds, or just the bits we had? Will I have to try and find receipts for what she spent the rest on?
Expert:  Clare replied 1 year ago.
Hi
My apologies for not being clear - it is the £10,000 that the LA would treat as still being available.
provided you can show evidence that work was done - bank statements showing payments to workmen etc then it is only the £10,000 that will be a problem.
Given that between £16,000 and £23,000 there is a sliding scale of contributions this simply means that your mother will not be entitled to assistance until her savings are £13,000 and will not receive full cover until they are £6,000
Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 33951
Experience: I have been a solicitor in High Street Practice since 1985 with a wide general experience.
Clare and other Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.co.uk/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.co.uk/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.co.uk/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.co.uk/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.co.uk/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.co.uk/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice