Who's name should the cash be in?

hellsbells6182518

Hi,

My dad worked and saved all his life but unfortunately died two years ago when he was 59. He left a fair bit for my Mum and I'm worried that by leaving it in her name, all my Dad's hard earned cash will end up in the hands of a nursing home at some point in the future. I'm aware that nursing homes will count any money that was given away as a gift within the last seven years anyway.

Am I better-off transferring it into my name (she's happy for me to do this) and risk the tax should she pass away within seven years or keep it in her name and hope she doesn't need to go into a home? Is there another way to get it into my name without having to use the gift allowance (which is so small that it would take me too many years to gradually move across and stick within the limits)?

Thanks, Helen

Torry_Quine

This is wrong on so many levels. Firstly the money was left by your Dad for your mum to enjoy including any care needs she may have in the future. There is actually no time- limit on transferring money to someone else for this reason it could be seen as deprivation of assets. The seven year rule is only for inheritance tax which also suggests a very large amount. Are you really saying that should it come to this though the local authority should fund her care?

From your side were you to need means tested benefit the money would of course be counted as yours so you could be caught from both directions.

le_loup

Interesting how many of these threads are started by loving children whose ONLY concern is the welfare of their aged parents money!
"Is there any way of getting the money into my name", she says with not a trace of irony.

hellsbells6182518

Yes you're right, the thread wasn't meant to come across the way it did (now reading it back). My Mum is very conscious that my Dad didn't get to enjoy his savings in retirement and so wants to ensure herself and her family are able to benefit from the money - I'm in no way talking about putting it in my name so I get it - more so she gets to use and enjoy it in the ways she wants to rather than it going to the government.

atush

First of all, no judgements.

Second, on yoru father death she can commute some of the inheritance to his children and grandchildren. Don't know if there is a time limit, but if he didn't leave a will and she was his sole beneficiary then she can give you some of his estate.

Second, she can give away certain amts per year to indivdual family members, and this will be outside her estate.

Does she have more than she needs to live on now? how will your family fund her stay in a Good Quality home (where we assume you will want her to be rather than a basic one) if she gives up most of her money?

jimjames

hellsbells6182518 wrote: »

I'm in no way talking about putting it in my name so I get it - more so she gets to use and enjoy it in the ways she wants to rather than it going to the government.

Surely she should enjoy it now by spending what she needs, the issue only arises if at some point in the future she needs care. Being able to pay for and choose the care she wants would be quite a good use of it rather than having to accept whatever the local authority deem is suitable.

Loughton_Monkey

Just a hypothetical conversation.....

Mother: "Oh this NHS-funded home will be the death of me. It's old. It's dirty. It's basic. It's run on a shoestring because the council is making cuts again..... For God's sake, why can't I go into that private one down the road. It costs a bit more, but I'd be far more comfortable...."
Loving Son: "Well you know why, mother. You gave me all your money. If we were to own up that it's your's, you would have to pay even for this place.
Mother: "But if I could afford it, I'd pay the higher figure like a shot...."
Loving Son: "Shame you can't afford it, then. You'll just have to stay here....."

What I don't know is the degree to which you can qualify to get state funded care, but elect to pay a fraction more and go into a 'better' home. If you can, all well and good, but if not, surely the above is a realistic scenario?

hellsbells6182518

Atush - Thanks. Anything that needed paying would be paid by this money (by me in effect) - basically absolutely anything she wants above and beyond what is required to live well will be paid out of this money... so maybe I don't need to move it then. I won't be spending a penny of it myself.

The above was just one reason to move it amongst others - my secondary reason is that my Mum doesn't really understand it all (to put this into perspective I can't get her to use an ATM or write a cheque) and so moving accounts around and making the money work would be so much easier in my name. Even enquiring about balances and stuff over the phone with me next to her is a bit of a trauma for my Mum at the minute.

talexuser

Would power of attorney be of use in this situation?

I am in the process of finalising this for my mother, with her support, because she is becoming more forgetful and I take care of all her finances already because she has been talked into unsuitable products in the past and does not like using the phone or want the hassle of opening accounts/moving accounts etc.

kidmugsy

If your father's death was less than 2 years ago, your mother good do a Deed of Variation to put the bequest into a Trust - with her, and the later her descendants, as beneficiaries. You and she could be the Trustees.

cing0

I don't know one person who has 'enjoyed' their savings to an extent that they have decreased over time before death. Old people have outdated attitudes that they should save and leave it to their kids etc. I think a halfway solution to avoid arguments etc is to turn spare cash into an annuity. The schemes and vehicles to protect the money officially are just revenue generators for IFAs and solicitors.

talexuser wrote: »

Would power of attorney be of use in this situation?

I think you mean online banking ?