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Gifting inheritance before care-costs

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  • tilda9
    tilda9 Posts: 8 Forumite
    Biggles wrote: »
    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?

    Hi Biggles - yes I think you are right, the rules are the same, but I think the last time they did an audit was about 10 years ago and the money has increased during this time. No, they don't yet know about it as we have only recently become aware of it when my brothers had to take power of attorney due to a deterioration in my fathers condition.
  • tilda9
    tilda9 Posts: 8 Forumite
    le_loup wrote: »
    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.

    Thanks Le Loup - so a person can give money to their family unless they become ill, is that what it boils down to?
  • greenface
    greenface Posts: 4,871 Forumite
    Mortgage-free Glee!
    tilda9 wrote: »
    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?
    It may do hopefully i have brought it to the attention of someone with a answer. Can Hubby & wifey (still married) Pass funds and assetts between each other even if one is in bad health ? Would it matter/count if they are seperated ?Can Hubby (bad health) pass money to wifey and then wifey (not bad health) gift it to her/their kids?
    :cool: hard as nails on the internet . wimp in the real world :cool:
  • System
    System Posts: 178,344 Community Admin
    10,000 Posts Photogenic Name Dropper
    tilda9 wrote: »
    audit was about 10 years ago and the money has increased during this time.


    I suspect that if a person's circumstances change, to the extent of acquiring savings greatly in excess of the £23,000 limit, then there is an obligation to inform the LA.

    If that is so then the issue resolves into being simply one of honesty. It has nothing to do with moving from Scotland to England, but is simply that the present LA does not know about the money, and any new one will.
    Your choices are:
    1) to leave him in Scotland and continue with an undiscovered evasion
    2) to move to England and contrive another evasion
    3) to confess and now or later loose most of the money.

    It's a difficult and clearly unfair dilemma to be put in.
    The only lawful exemption I can see would be to put the money into a house for his spouse. It would have to be demonstrably reasonable to spend the excess, but perhaps house prices might be unavoidably higher in the new area?
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • roddydogs
    roddydogs Posts: 7,479 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Arnt we getting confused about "Scotland"? (where they dont sell the house to pay for Care costs) as opposed to savings?
  • wotsthat
    wotsthat Posts: 11,325 Forumite
    tilda9 wrote: »
    Thanks Le Loup - so a person can give money to their family unless they become ill, is that what it boils down to?

    Not quite. Ill or not your father can give away 100% of his assets should he so wish. So can you and so can I - it's our money so we can do as we wish.

    What we can't do is give away all of money with the intention of depriving ourselves so that the state has to pick up the tab. It's illegal and immoral.

    There's a useful leaflet here..

    http://www.firststopcareadvice.org.uk/downloads/resources/FS8%20-%20Deprivation%20of%20Assets.pdf
  • peakoil_2
    peakoil_2 Posts: 206 Forumite
    tilda9 wrote: »
    Thanks Le Loup - so a person can give money to their family unless they become ill, is that what it boils down to?

    no it boils down to a person can give money to their family as long as the family doesnt then put that person into a home and expect the tax payer to pick up the bill. if you took care of your father at home then it would be fine to accept the money as it would go towards his keep. as it is you are dumping him onto us and still expecting to be paid for his keep.
  • cloud_dog
    cloud_dog Posts: 6,321 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I know the OP doesn't want to hear this but this thread repulses me. :mad:

    Why wouldn't you want to use all of your fathers available assets, and even your own if needs be, to ensure he has the best possible care available?

    I look after and maximise my mothers assets/savings so that she can have more options/less worry in the future should she need funds not to maximise my inheritence.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • jennifernil
    jennifernil Posts: 5,710 Forumite
    Part of the Furniture 1,000 Posts
    This is the situation up here in Scotland, there is a little more help, but all your assets, including your house, are taken into account. The rules are pretty similar........

    http://scotland.shelter.org.uk/getadvice/advice_topics/paying_for_a_home/paying_for_care_and_support/paying_for_a_care_home

    So this money in the OP's father's account is treated the same here as in England.
  • Torry_Quine
    Torry_Quine Posts: 18,872 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    roddydogs wrote: »
    Arnt we getting confused about "Scotland"? (where they dont sell the house to pay for Care costs) as opposed to savings?

    Yes they do. :eek:
    This is the situation up here in Scotland, there is a little more help, but all your assets, including your house, are taken into account. The rules are pretty similar........

    http://scotland.shelter.org.uk/getadvice/advice_topics/paying_for_a_home/paying_for_care_and_support/paying_for_a_care_home

    So this money in the OP's father's account is treated the same here as in England.

    If he has all that amount of money then he should as you say already be paying for his care and if he isn't then could be in trouble and have to pay it back when they fine out.
    Lost my soulmate so life is empty.

    I can bear pain myself, he said softly, but I couldna bear yours. That would take more strength than I have -
    Diana Gabaldon, Outlander
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