Mum wants to give us money from house sale

neverdespairgirl

Captain_Mainwaring wrote: »

Problem is....
We "extend" state funded everything to every dropout and dosser, and they don't even have to be British. .

You can't get benefits etc unless you have at least ILR, with the exception of NASS (National Asylum-seekers Support Service)

vinuela13

seven-day-weekend wrote: »

Whilst I agree that 'personal' care can not be funded by the State I can understand why people get upset about it, when they see people who have made no provision for the future whatsoever getting exactly the same as, or sometimes more than, they, who are using their lifelong assets to pay.

I'm not for one minute saying the people who have no money should get inferior care. What I AM saying is that people who are self-funding should not be expected to subsidise those who are state-funded, which is what happens at the moment.

The system is not fair, and I think this is what people resent.

Also, don't forget the elderly people going into care now were promised cradle-to-grave free care and they feel this has been reneged on, so you can understand them feeling a bit upset.

In a nutshell,thank you

kennyboy66_2

diddlyidi wrote: »

hi Kennyboy
When you say there isn't a limit on what amount can be gifted before you have to account for tax can you elaborate on that.
My mum is currently gifting £3000 each year to myself and my sister which I believe is free of IHT

Does this mean that you mum has net assets of more than £312k?

kennyboy66_2

griffosteve wrote: »

Quote:
Originally Posted by Mum_of_3
There is a limit on the amnount of cash someone can gift you each year before you have ot pay tax on it, so be careful you don;t fall into that trap.


Just been told this week by my accountant that there is a limit of £3000 per year, on gifted money before you are taxed on it.

Utter rubbish.

Your estate may pay tax on it depending on when you died and how much your estate was worth & how much you had given away & whether this gift was out of income or capital.
If you are seriously worried about inheritance tax, you surely can afford to pay for some proper advice rather than half-baked nonsense.

margaretclare

Look at #1 - IHT doesn't come into this at all.

Mum is hoping to receive £135K from a house sale and wants to give this total sum divided between 2 daughters, one of whom is the OP. We're not told what else Mum has in the way of savings and/or income.

The whole discussion centred around what happens if/when Mum goes into a care home, who pays etc etc.

Must confess, I've just read #1 again. From my point of view, if I was to receive the proceeds of a house sale to the tune of £135K - maybe the last major 'windfall' ever coming my way - hell would freeze over before I'd ever give a penny-piece away to anybody. It would be well invested to give me a decent income for life.

Debt_Free_Chick

margaretclare wrote: »

Must confess, I've just read #1 again. From my point of view, if I was to receive the proceeds of a house sale to the tune of £135K - maybe the last major 'windfall' ever coming my way - hell would freeze over before I'd ever give a penny-piece away to anybody. It would be well invested to give me a decent income for life.

I certainly wouldn't be throwing myself at the mercy of State-funded basic "care". I'd be booking into the Savoy Hotel for the rest of my life! Well, OK - £135k might not see me out, but you get my drift

Debt_Free_Chick

seven-day-weekend wrote: »

Also, don't forget the elderly people going into care now were promised cradle-to-grave free care and they feel this has been reneged on, so you can understand them feeling a bit upset.

They were not promised a free housekeeper, though. And not all of the reforms set out in the Beveridge Report were enacted.

The reference to "grave" was to the provision of a non-means tested pension and resulted in improvements to the State Old Age Pension. The biggest reform, though, was the creation of the NHS. The NHS WILL provide medical care for the elderly but it won't dish out money to those who do not need medical care. In this respect, no promise has been reneged upon - rather, people don't understand the nature of the promise that was made.

If you're interested, then the text of the Beveridge Report is here but it just contains recommendations. The promises were set out in the legislation (and not all of the recommendations were translated into promises) and Wiki has a good summary here

Regards

Bogof_Babe

That is the critical point very well made DFC.

My mum is (self funding) in a care home and if she needs a doctor one comes to see her, free of charge as has always been the case.

However she is fed, bathed and helped with dressing, which are not medical needs, and this is what her £500 a week pays for.

Everyone gets old if they are lucky enough to live that long, and it would be impossible for the economy to cope if everyone over say 80 abdicated all responsibility for themselves and expected free hotel type services for the rest of their days.

People used to say they were saving up for their old age, but now it seems that even when they reach that point they are unwilling to use their savings to look after themselves.

scottishf

Well the way I see it is that working people get scr**ed over at every turn. We work all our lives, and go without, so that we can save for our future....only to find that people who have claimed benefits, and never pay anything into thsystem, get a free ride as usual when reaching old age!. I don't mind the people who actually deserve the benefits, but we all know that there's a bulk of benefit fraudsters out there who take take take at the expense of the tax payer!

chewmylegoff

If your mum is going to give you all of her money, then presumably you will be good enough to take her in and look after her when she cannot live independently anymore, so presumably none of the rhetoric about who should pay for care homes is relevant...


And on the tax point, you can give £3,000 every year with no recourse to IHT. If you give more it is called a "potentially exempt transfer" (PET). If you live for more than 7 years after making the PET then no tax is payable. If you die within the 7 year window then IHT is payable (assuming the nil rate band is exceeded) but is tapered, so if you live 6 years only 1/7th of the IHT would be payable.

gifts have to be no-strings. so if your parents give you their house and then you let them live there forever without paying any rent, then it will be counted as part of their estate when they die, regardless of the passage of time.