Care Home fees -- division of private pension

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Care Home fees -- division of private pension

Postby gardenlaw » Mon Feb 25, 2013 1:14 pm

This is a helpful summary of the division of a private pension received by the husband or wife who is in a care home:

"the spouse in care in receipt of private pension can allocate up to 50% to the spouse (wife in this case) living at home – but she must actually receive it. Therefore, a joint account into which the private pension is paid would be recommended or a transfer from H’s account to W’s account of half the pension would suffice.

The property is disregarded whilst occupied by your client.

The personal allowance is £23.50 per week and the remainder of state pension and pension credit is payable towards care. If H has not applied for pension credit then application should be made asap because the LA assume a resident will have it and the DWP don’t backdate.

Your client will not be responsible for fees unless a more expensive home is chosen than an available home at LA rates. At that point a third party top-up will be requested from your client. If however, there is not a cheaper home with a place suitable for H’s needs then the LA will be obliged to pay the higher amount – they will need to be pressed into agreeing to this.

I am not sure whether the personal allowance can also be used to pay for household running costs. If H has capacity and agrees then there is no problem but if he does not then I doubt that W can do this unilaterally. It would not be reasonable to expect H to pay for utility bills or council tax since he is not living there. Your client can also claim pension credit. She will also be entitled to 25% discount on the council tax bill since she will now be living alone and subject to her income and capital may be entitled to council tax benefit. I would be reasonable to expect H to contribute to the cost of repairs to the property since he still has an interest in the property."

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