Means testing for homes

dfreed

Hi,

A relative of mine currently rents a flat privatly and has an 'estate' of around £200k .... i know the rules around gift and the 7 year rule etc etc but if she gifts the money to her children now and then in 3 years needs to go into a home and therefore doesn't have any property or savings is there any comeback on the gift???

Thanks

Mojisola

Yes - the disposal of her capital will be seen as intentional and she will be assessed as if she still has the money.

alanq

http://www.ageuk.org.uk/home-and-care/care-homes/deprivation-of-assets-in-the-means-test-for-care-home-provision/

Mojisola

I always say this - go with your relative to visit a few homes that the local authority would put her in if they were funding the place and then visit some that she could choose if she had the money to pay for herself. Decide where you would rather spend your last years.

Mojisola

dfreed - you don't say how old the relative is. If she's relatively young and without significant health problems at the moment, she could argue that she had the right to give some of her money away. If it's obvious already that she will be needing help in the foreseeable future, it's too late.