Gifting inheritance before care-costs

tilda9

My father has Huntington's, a degenerative brain disease and we are trying to move him from his care home in Scotland to England to be nearer us, his four children, who live down South.

We have recently discovered that he has £68,000 in his current account. A financial adviser has told us that this sum will have to go towards his care-costs if he is moved to England.

I know that it is illegal to move money try to avoid care home costs and would certainly not do this, but I'd like to know if there is any possibility of Dad being able to gift any of this money to us in any way before he is audited, as he would like to do so.

It seems very unfair to us that not only do we have a very sick father, we will also have to give up any money he has saved through his life for us.

Please do not feel you have to reply if all you want to say is 'why should tax payers fund your father's care' etc. - I know this argument and it is unhelpful to me. All four of us have paid taxes all our working lives.

I'm looking for advice from someone who has been in this situation and can offer any practical advice.

Many thanks!

SeniorSam

If the action of gifting is for the purpose of avoiding care costs, then the answer is no. There will be a lower limit that he would be allowed to retain and your local authority would be able to advise you on that amount.

If however, you father has made gifts in the past, then continuing in the way he has done in earlier years is usually acceptable.

Sam

greenface

Welcome to MSE and good luck with your dad . Your local Care authority have been asked this many times over and depending on the level of care needed presently and in the future (they know this too) Its worth asking them without the need to disclose information. I dont know scottish rules but are these facts of savings not relevant in Scotland care as you say he is in a care home up there ? Best wishes to your Dad, you & kin .

le_loup

tilda9 wrote: »

1. I know that it is illegal to move money try to avoid care home costs
2. I'd like to know if there is any possibility of Dad being able to move any of this money to us before he is audited

... and the difference is?

tilda9

SeniorSam wrote: »

If the action of gifting is for the purpose of avoiding care costs, then the answer is no. There will be a lower limit that he would be allowed to retain and your local authority would be able to advise you on that amount.

If however, you father has made gifts in the past, then continuing in the way he has done in earlier years is usually acceptable.

Sam

Many thanks Sam this is helpful. They have told us that the threshold is £23,500. It seems odd to me that if, in effect, my father had gifted money to us, say, five years ago, that would be ok but now it is not. Do you happen to know what the timeframe is on this? - ie. if he was to gift the money now whilst he is in Scotland where he pays a set amount for care, and then we make the move to England (when he would need to be audited) in a year, would that still be considered illegal?

tilda9

greenface wrote: »

Welcome to MSE and good luck with your dad . Your local Care authority have been asked this many times over and depending on the level of care needed presently and in the future (they know this too) Its worth asking them without the need to disclose information. I dont know scottish rules but are these facts of savings not relevant in Scotland care as you say he is in a care home up there ? Best wishes to your Dad, you & kin .

Hi Greenface, many thanks for this. The problem is arising because we would like to move him from Scotland to England. I will have to ask for more detailed advice from the Scottish local authority I think. Thanks!

le_loup

tilda9 wrote: »

It seems odd to me that if, in effect, my father had gifted money to us, say, five years ago, that would be ok but now it is not.

Where did you get that information from? I do not believe there is any time limit. It is up to the council to determine what constitutes deprivation of assets. Giving money to familiy members would clearly call in to question the intent regardless of time, or health at that time.

tilda9

le_loup wrote: »

... and the difference is?

My question is whether there are any legal ways of him gifting any part of it. I'm aware there may not be, but as I am very new to all this, I'm asking if anyone has any helpful advice.

greenface

I think the op asked the question right though. They know you just cant start giving money away to avoid future costs of care . But can Dad give some money away as this is what he wants to do.
Me personally and this is just IMO I would try to shift as much as possible and sit on it(not spend it) .See who notices thats just my opinion . Shoot me down.

Is mum still with us are they still married ??

Biggles

As far as I can see, the rules are the same in England and Scotland, including the threshold of £23,500. I assume the Scottish LA doesn't yet know about this £68k?

tilda9

greenface wrote: »

I think the op asked the question right though. They know you just cant start giving money away to avoid future costs of care . But can Dad give some money away as this is what he wants to do.
Me personally and this is just IMO I would try to shift as much as possible and sit on it(not spend it) .See who notices thats just my opinion . Shoot me down.

Is mum still with us are they still married ??

Hi, thanks Greenface. This is my brother's opinion too, but I am keen that none of us goes to jail! Yes, my parents are still married although separated. Does that make a difference do you think?