How much money can you give away ?

learjet

JimmyTheWig wrote: »

How about this as a practical suggestion...
How much savings does your mum actually need?
What if she spent the next however long eating away at her savings? Yes, I'm sure she oculd buy some reasonably generous gifts for you and your sister, but more importantly buy stuff for herself. Get stuff done around her house to prepare for the future. E.g. get the garden redesigned to make it low maintenance which will help as she becomes less mobile. Have a downstairs bathroom put in, for example. Or maybe a stair lift? And just generally enjoy the savings that she has built up.
Then when she's down within the limit she could claim benefits.

That may leave her slightly outside of her comfort zone in terms of savings. But then it's a good job she's got a son who can afford a few quid to help her out if things get desperate. (And given the fact that you could get the money back at the end of the day from the house sale I'm guessing means that you could afford to lend her £20k if need be.)

How does that sound, OP? Do you think your mum wuold like the idea?
How does it sound from a legal POV, others?


Alternatively, could she buy an annuity with £20k? I.e. something that pays out monthly for life? At 76 she should get a decent monthly return.

Ah some constructive advice - thanks very much Jimmy the Wig. There's a lot of good points there worth considering so I will think them through. I suspect however that my Mum will be moving closer to me in the New Year and my sister and I will be putting £50k towards her new bungalow purchase - so much for ripping her off! (unless someone tells me this is illegal too!).

As I said in the original post "Is there a way to legally reduce this savings level". I wasn't trying to defraud anyone. I didn't see my Mum getting the same help as her neighbours and friends as being fraud. Obviously I hadn't thought it through - hence the original question.

RayWolfe wrote: »

Very sensible suggestions AND entirely within the fact and the spirit of the law.

That's the first constructive comment you've made in this thread!

RayWolfe

learjet wrote: »

That's the first constructive comment you've made in this thread!

Oh thanks!

JimmyTheWig

learjet wrote: »

my sister and I will be putting £50k towards her new bungalow purchase

Why don't you put £30k towards her new bungalow and she can use £20k of her savings? Then she'd get the benefits.

Incidentally, I believe you can have it drawn up that any money you give her is a loan and is secured against the value of the bunglow (i.e. a mortgage). You obviously wouldn't expect her to pay you back, but it would mean that if she ended up in a care home and the council wanted to sell her bungalow to pay for her treatment you would still get the money you put in back.

Gills

Hi Learjet.I'm in the same position as you.My 93 year old Mum has worked all her life and wanted to leave some money for her daughters.She now find herself having to use it to pay for basic care,which others who haven't saved,get for free.She has worked hard all her life and never owed anybody a penny.What good has it done her ?As far as I am aware your Mum can give away £3000 per tax year with no problem.As for someone's suggestion that she should do up her house or treat herself to things she doesn't really need;do they know how hard it is get elderly people to actually spend money on themselves..Why should elderly people who have spent their lives working for something have to watch it all disappear on basic care which they thought they had already paid into anyway through a lifetime of National Insurance contributions ?If I can find a way of making some of my Mum's money "disappear ",I will do it and I don't care what anyone else thinks.The only objectors will be the people whose parents aren't in the same position.Good luck Learjet.Gills.

Antispam

Any reason you bumped an old thread up Gills the OP hasnt logged on since Jan 09


learjet
Last Activity: 14-01-2009 12:53 PM

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I'd be more worried about her going into a home and the state robbing the house and selling it to pay for her care at some point. I'd find some way, bending every rule if need be, to make sure they got nothing. And I'd have her claiming everything with bells on.

Embarrassed ? you can't eat smugness not pay bills with false pride.

If the kids have the money or any money, buy the house from mother for next to nothing and write up a lifetime lease with peppercorn rent. Include whatever you can get away with and this gets rid of the property. Now the cash she has should be disappeared within the confines that tax avoidance is illegal but tax mitigation is right and proper.

I'd soon have it all vanished but still available if you see what I mean and all within the law if not the spirit of the law.

It is not like she has to drag herself down the the job centre to sign on every Friday is it ?