Residential Funding

[bugsley]

Regrettably both in-laws ended up in a residential home together and Father-in-law died last year. In his will, he left half his estate to his daughter, my wife. The other half is still being used to fund Mother-in-law.

 

However, today we received a letter from the local council who are part funding her care that says the following :

 

"When opening a joint bank account an agreement will be signed with the bank which will address the terms of the account and the rule of survivorship. In order to determine if the capital moved from Mrs xxx joint account with her late husband can be disregarded, we require evidence of the terms of agreement with the bank."

 

Surely a will overides any prior agreement?

 

What exactly are they getting at here? Can anyone shed any light on this please.

 

 

Thanks in advance

 

Bugsley

[freakyleaky]

It sounds like they want the money that your FIL left to your wife to go towards the care of your MIL as it came from an account with her name on it.

Not sure they can do this but will ask others to take a look.

[rebel11]

Hi freaky

 

I've moved it to 'Legal Issues'.

[bugsley]

Thanks Freaky. That was my interpretation too, but it just does not appear right to me. We'll be requesting the contract from Lloyds Bank on Saturday.

 

Regards

 

Bugsley

[caro]

It sounds to me as if there was a joint account and they want to know where the money has gone.

 

If it's what I think it is, the rule of survivorship is that if someone gave away money or property more than 7 years before entering residential care it can be disregarded. If less than 7 years it is taken into account when assessing the persons contribution when going into care. This is to avoid people giving their property to children when going into a home to avoid paying.

 

I may be wrong on this so it's probably best if you contact the council to find out what they have in mind, as I'm pretty sure they'll be looking to reassess your finances and what contributions they may be able to get for her care.

[bugsley]

I understand that Caro. They were both in residential care. On the death of FIL, he bequeathed his estate to his daughter which left half the account still available for MIL. MIL never worked. None of MIL funds have been removed, other than a few incidentals that are costs for presents and clothes for her etc. Why should they have any call whatsoever on the proceeds of a will?

 

As it happens, after making enquiries at the weekend it turns out there is no "contract" with the bank that they signed.

 

Bugsley

[AndyOrch]

" As it happens, after making enquiries at the weekend it turns out there is no "contract" with the bank that they signed."

 

I suspected there wouldn't be one.

 

Andy