Family Home to Be Disregarded In Financial Assessment – Local Authority Refused Application
We were recently approached by a client who had asked that the family home be disregarded in a financial assessment (means test) carried out by the Local Authority. They had refused.
Notwithstanding compelling reasons why the family home should be disregarded, the Local Authority refused to accept these reasons and said that they were going to pay the care home at the full self-funders rate, which is often 40% more than the Local Authority pays for the same bed. To add insult to injury, the Local Authority required the care fees they were paying to be secured by way of a charge/mortgage known as a Deferred Payment Agreement, on the care home resident’s long owned, and very cherished, family home.
The distraught family contacted us, and it was immediately apparent that the rules that govern how a Local Authority should include, or exclude the family home, had not been properly followed.
After reviewing the papers and setting out the correct legal position, the Local Authority agreed they were wrong, and agreed that the family home should be disregarded.
Result – the family home, valued at around £100,000, saved, and instead of paying £770 per week care fees (being the self-funders rate), the Local Authority would be responsible for the care fees at a lower rate, subject to a modest contribution from a resident’s pension.
If you think your Local Authority has unfairly decided that a property should be included within a financial assessment (means test), and failed to consider if a mandatory or discretionary property disregard is applicable, call Steene Law for a free conversation.