Health Insurance Fair Deal cash in account.

Hi there,
Finding it hard to see information online about this specific issue.

We are approved for Fair Deal with property as deferred asset. I understand all the ins and outs. I am thinking about my Mum's cash assets depleting, with expenses. ie we pay health insurance, property apartment fee per year, excess in nursing homes etc so the cash will be being used up all the time.

So do we request another assessment in 12 months, is that how it works or are you stuck with paying exactly what was found as 7.5pc on the first application?

Also are the accounts frozen, in terms of she can't gift us the 3k per year (children) etc ?

We will want to buy her stuff like laptop for nursing home etc out of her own money ?

We just want to be clear and not break any rules in how we pay for stuff, but to be financially sensible at the same time. She has all her wits about her.

Thanks for any links/tips
N.

NDynamite said:

Hi there,
Finding it hard to see information online about this specific issue.

We are approved for Fair Deal with property as deferred asset. I understand all the ins and outs. I am thinking about my Mum's cash assets depleting, with expenses. ie we pay health insurance, property apartment fee per year, excess in nursing homes etc so the cash will be being used up all the time.

So do we request another assessment in 12 months, is that how it works or are you stuck with paying exactly what was found as 7.5pc on the first application?

Also are the accounts frozen, in terms of she can't gift us the 3k per year (children) etc ?

We will want to buy her stuff like laptop for nursing home etc out of her own money ?

We just want to be clear and not break any rules in how we pay for stuff, but to be financially sensible at the same time. She has all her wits about her.

Thanks for any links/tips
N.

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Hi N. You can have a financial review carried out every year. Costs of nursing home fees and other reasonable expenses will be taken into account and her contribution reduced accordingly. Gifts to family will not be taken into account and the assessment will consider those funds still to be there. This does not prevent your mum or her representative from making the gifts.

So if we take cash out of accounts and have receipts ready for submission is that ok? Or all transactions in the account better?

You could talk to your mother and plan what she wants around management of her affairs. If she still had her wits about her then her accounts are hers to make decisions about.

Your mother might want to set up power of attorney to manage her finances, or she could decide to set up a joint account for ease of administration for those carrying out business for her.

No matter what, always keep receipts. Good idea to make appointment for your mum to seek legal advice to organize her affairs if you have not already done so. Google solicitors for the elderly for leads on solicitors who have a particular interest in working with older people.

If she has not already done so, she might wish to avail of the nursing home loan to pay the fees, enabling her to keep more cash available to her.

NDynamite said:

So if we take cash out of accounts and have receipts ready for submission is that ok? Or all transactions in the account better?

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Whoever is authorised to manage her account can withdraw for whatever purpose she wishes (or the authorised person feels appropriate). Any reasonable expenses will be allowed against her savings but not big transfers. Good advice from Easter.

NDynamite said:

So if we take cash out of accounts and have receipts ready for submission is that ok? Or all transactions in the account better?

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I had relations reassessed. Each year I would write in asking for the reassessment as savings had reduced substantially, I would enclose the most recent monthly statement that would show the balance along with cash withdrawals, purchases, utilities etc.

In our cases the amount spent in the year was reasonable and we were notified of the new lower weekly contribution without being asked for receipts or any other questions. Receipts for everything are always kept in case they are asked for.

I suspect, but have no experience of, if an unreasonable amount had been spent, it would not have been that simple.

Ok thanks for all the advice, the situation is my mum has sort of given up. She has developed a tiny bit of forgetfulness but probably medication related. So she wants us to sort everything so she doesn't have to deal with it. I might send in her solicitor, but dont think she will even want to deal with them for power of attorney but might have to do that so we can sort her stuff more easily.

So for now we will keep receipts for all her bits for next year assessment.

NDynamite,
This is a tough and emotional time for any parent and the children. It's something my wife and myself had to do a few years ago as other brothers and sisters didn't seem too interested or just went about all their own day to day things and all that, without giving it any attention. My mum also got ill, not terminally or anything but had a few heart problems and associated ailments that go with old age. We (wife and myself) had a chat with her when she felt well again, explained to her that anything might happen, etc and she would need to have her affairs in order. It surprised us how well she understood all this and she herself wanted to get everything sorted but didn't know where to start and asked us if we would mind going through everything with her, wanted it kept quiet and not to say anything to other members of the family as it might lead to confrontations, arguments, decisions, etc. She herself knew what she wanted to do, asked me to be executer and just bring her to solicitor and she would do the rest. This I did. You may want to get this done with your mum now.
I don't know the inns and outs of the fair deal rules as they are today and you're very right in trying to get things in order. Just posting here because you may need to get everything in order with regard to everything else too.

NDynamite said:

Ok thanks for all the advice, the situation is my mum has sort of given up. She has developed a tiny bit of forgetfulness but probably medication related. So she wants us to sort everything so she doesn't have to deal with it. I might send in her solicitor, but dont think she will even want to deal with them for power of attorney but might have to do that so we can sort her stuff more easily.

So for now we will keep receipts for all her bits for next year assessment.

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NDynamite. Sorry you are going though this. You have received good advice from twofor1 and noproblem. I would add that you need to act quickly before any further decline in your mum's ability to assign POA. This I have come to realise from current on going family matters. Best wishes to you and your mum.

I just want to add from personal experience of both systems, the importance if you can of getting an enduring power of attorney set up. If your Mum loses mental competence, the process of arranging things becomes much more expensive, slow and complex (as it should be, to avoid elder abuse, but the process is very tough on caring relatives). So do it now if you can (eg you will likely have to have a doctor assess her competence... takes time to negotiate and organise).