without this arrangement my mother couldn't afford nursing home care.
Can’t understand how this is the case, Fair Deal is available to all regardless what income, if any or what assets, if any that they have. Everyone pays 80% of their income, plus 7.5% of the value of their home (If they have one, this is capped at 3 years, and can be deferred until after death) plus 7.5% of any other assets they might have.
So far you have stated;
Your Mother’s income is a widow’s pension and a public service pension, so regardless of anything else, she is going to pay 80% of this income indefinitely as long as she is in nursing home care.
Your Mother has other moderate assets / savings, but these are below the threshold, so should be disregarded in the financial assessment.
Your Mother has a house worth £235K. Under Fair Deal she would be assessed at 7.5% of it’s value for the first three years only, so £17,625 annually or £52,875 maximum, thereafter it would be disregarded.
Even with tax relief I can’t see how it is ‘’Prudent’’ to privately fund nursing home charges, typically £50K /£70K annually for 5 years to avoid the £52K that would be assessed on the house.
From what you have posted, it appears that it would have been far more ‘’Prudent’’ for your mother to be in the nursing home under Fair Deal from the start.
Reading between the lines, to me it looks like someone wants to get the proceeds of the house now, rather than in due course when your Mother passes.