Mother inherited money while in a care home

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Flowerfairy34
Flowerfairy34 Posts: 1 Newbie
in Over 50s MoneySaving
My mother has unexpectedly inherited a substantial amount of money but she is in a care home funded by the council. Should this be declared to the council or could she gift some of it?
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  • Kim_kim
    Kim_kim Posts: 3,726 Forumite
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    Flowerfairy34 wrote: »
    My mother has unexpectedly inherited a substantial amount of money but she is in a care home funded by the council. Should this be declared to the council or could she gift some of it?

    Seriously!!!
    Should the council tax payers in your county continue to find her while she passes the money to you?
  • Katiehound
    Katiehound Posts: 7,557 Forumite
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    If she was to gift some of it then she is knowingly reducing her assets and thereby trying to 'cheat' the council out of paying for her own care.

    Clearly the inheritance needs to be declared- but I'm sure you knew this already. Gone are the days when folk could give their money away to relatives so that the state could fund long term care- that loophole is closed.
    Being polite and pleasant doesn't cost anything! --
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  • Pollycat
    Pollycat Posts: 34,688 Forumite
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    Flowerfairy34 wrote: »
    My mother has unexpectedly inherited a substantial amount of money but she is in a care home funded by the council. Should this be declared to the council or could she gift some of it?

    That's great news.

    You could consider moving her to a home that may give superior care now she can afford go fund her own care instead of relying on a council funded one.
  • tacpot12
    tacpot12 Posts: 7,972 Forumite
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    While moving your mum to a better home is something you can consider, if she is happy where she is, and the staff are taking good care of her, I'd suggest that she stays where she is and pays for it herself. The council will be able to help someone who needs care but cannot afford it if your mum pays for her own care. No reason why some of the money can't be spent by your mum on improving her life though. She should spend what she reasonably can on herself, and pay for her care with the rest.

    She won't be seen as depriving herself of assets if she spends sensible amounts on justifiable expenses.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • tocsin
    tocsin Posts: 186 Forumite
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    I tend to agree with the moral situation expressed by most of the posters above.

    However, if the will as written did not take into account the changed situation over the years, than I would suggest googling 'Deed of Variation'.
  • ericonabike
    ericonabike Posts: 334 Forumite
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    Dear me. Much moral outrage, not a lot of factual info. If your mother is getting Pension Credit, she may well be on an Assessed Income Period. If so, she does nor have to report changes in capital. These AIPS are being phased out for new claimants, but if she is over 75 and on an indefinite AIP, this will continue unchanged. See https://www.nidirect.gov.uk/articles/changes-assessed-income-periods

    Suggest you have a word with your local CAB. Also worth reposting on the benefits section of this forum as there is more expertise there.
  • p00hsticks
    p00hsticks Posts: 12,826 Forumite
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    ericonabike wrote: »
    Dear me. Much moral outrage, not a lot of factual info. If your mother is getting Pension Credit, she may well be on an Assessed Income Period. If so, she does nor have to report changes in capital. These AIPS are being phased out for new claimants, but if she is over 75 and on an indefinite AIP, this will continue unchanged. See https://www.nidirect.gov.uk/articles/changes-assessed-income-periods

    Suggest you have a word with your local CAB. Also worth reposting on the benefits section of this forum as there is more expertise there.

    As far as I'm aware (and you link seems to reinforce) , any AIP would relate specifically to the receipt of Pension Credit, and wouldn't extend to care home funding (which will comes from the local coucil, not DWP as benefits do)
  • p00hsticks
    p00hsticks Posts: 12,826 Forumite
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    tocsin wrote: »
    However, if the will as written did not take into account the changed situation over the years, than I would suggest googling 'Deed of Variation'.

    a deed of variation wouldn't avoid any intentional deprivation od assets, since it would require the beneficiary to agree to forego the inheritance....
  • Keep_pedalling
    Keep_pedalling Posts: 16,635 Forumite
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    I am afraid their is no get out here, a DoV, as has already been pointed out, would be treated as depreciation of assets, as would gifting large chunks of it away.

    The council should be informed of her change of circumstances so a new assessment can be made. Remember that her inheritance will be a matter of public record, as will her estate be when the time comes.
  • teddysmum
    teddysmum Posts: 9,471 Forumite
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    Regarding Deed of Variation: refusing the inheritance would be considered the same as giving money away, as both would be construed as a way of evading self-funding.
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