Care home costs

Hugh

My Dad who is 90 is now looking to move to a council funded care home. He has about £50K savings, no home to sell and is looking at giving most of his money away before he moves, to his 2 grandchildren. Can he do this or what can he do to avoid paying the council for his care?

Torry_Quine

Sorry but no he can't give away his money as that is deprivatiion of assets. If he gives it away he will be treated as if he still has it. It is too late to do anything to avoid paying.

Hugh

Can he pay £4K for his funeral, and give £3k to each grandchild as per IHT for this and last tax year?

yelf

Yes - if it can be shown that the gifts are for IHT avoidance then these gifts will be discounted.

Hugh

How about if he bought a couple of expensive things like a car as he likes being driven about and something else any ideas? Unfortunately he doesn't come into IHT avoidance, just want's to give the money to his family rather than the Government, he has paid all his dues all of his life.

RayWolfe

Hugh, think about what your dad needs, not what you would like.
He saved for a rainy day and it is now raining. He can afford better than standard council care and you should be helping him to achieve that.

Cook_County

I assume he is already receiving care where he lives now. Does he contribute to that?

RayWolfe

yelf wrote: »

Yes - if it can be shown that the gifts are for IHT avoidance then these gifts will be discounted.

Where do you get that from?

James_Trimby

I'd give small birthday/xmas gifts (say £250 each or some such) which Revenue should accept as normal rather than trying to hide assets, otherwise you are stuffed. But as mentioned if this can get your father slightly better care that should be far more important.

Re wild spending not sure that there are any specific rules on this and this is always a problem for a benefit system that often people who scrimp and save are eventually no better off than those who spend it all. BUT if he still able to, I would spend on what ever I wanted for myself and enjoy it ! It is just that, at 90 the things he can do might be a bit limited! (If he buys a car for you to drive him around it is still his car and an asset on the forms, and one the Council would expect sold so only people to gain would be the garage).

[Deleted User]

It does seem to be a grey area though. Surely a person can do as they wish to a certain extent before its blatantly deprivation of assets.

I know what the OP means though. The system is a bit unfair on those who've worked all their lives and saved their money as oppose to blowing it all.