How Can I Protect My Inheritance from Care Home Fees?

Question from Helen, How Can I Protect My Inheritance from Care Home Fees?

Answer from AI:

When a relative with dementia requires care, the financial implications can be significant, especially when it comes to inheritance and the costs of care. In the UK, the rules surrounding the payment for care and the impact on inheritance can be complex. Here’s a general overview of what you might consider in this situation:

Understanding Deferred Payment Agreements

A deferred payment agreement is an arrangement with the local authority that allows people to use the value of their homes to fund care home costs. If your relative has entered into such an agreement, it means that the care fees will be paid after their death, typically from the sale of the home.

Investigating Misappropriated Funds

If you suspect that another family member has misappropriated funds, this is a serious matter. You may need to:

1. Review bank statements and financial records to gather evidence.
2. Contact the bank to report any suspicious activity.
3. Consider reporting the matter to the police if you believe a theft has occurred.
4. Consult with a solicitor who specializes in elder law or financial abuse to explore legal options.

Seeking Legal Advice

Given the complexity of your situation, it is advisable to seek legal advice from a solicitor experienced in inheritance and elder law. They can help you understand:

• The legal duties and responsibilities of someone with power of attorney.
• How to challenge decisions made by the other person with joint power of attorney if they are not in the best interests of your relative.
• Options for recovering misappropriated funds.
• Whether the deferred payment agreement is the best option or if there are alternatives.

Exploring Care Home Options

If you believe that a less expensive care home could provide adequate care, you can:

1. Research and present options for more affordable care homes.
2. Discuss these options with social services and the family member who is resistant.
3. Involve a mediator if necessary to resolve family disputes.

Protecting Your Inheritance

While it is natural to be concerned about your inheritance, it’s important to balance this with the care needs of your relative. The primary concern should be ensuring that they receive the care they need. However, you do have the right to explore all legal avenues to protect your interests.

Next Steps

Consider taking the following steps:

• Document all communications and decisions made regarding your relative’s care and finances.
• Request a meeting with social services to discuss the financial situation and care options.
• Seek legal advice to understand your rights and options.

For more information on deferred payment agreements, you can visit the UK Government’s guidance on deferred payment agreements. It’s crucial to act promptly, as the longer the situation goes unaddressed, the more complicated it may become.

Remember, this information is not a substitute for personalized legal advice, and you should consult with a legal professional to address your specific circumstances.