Gifting inheritance before care-costs

greenface

cloud_dog wrote: »

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.

In a sense i agree with you and the OP sounds reasonable enough to ask queations here . Here is a little run down on where i am. I & OH have 3 kids one is pooly(*) 2 are fine(##). When we are gone we have put in place to leave ## everything (currently alot)and * nothing. If we left * something, it will get swallowed right up and * wont get anymore better service than AN OTHER being cared for if they have no savings. But ## both know this money left for them is to make* life so so much better as good as it can be and to "enhance" any benifits he is still entitled to . Playing the system yes . Getting the best for * wouldnt you ? other peoples opinion < not bothered> ## could do a runner with all * money. Yes they could but they wont.
Not maximising inheritence agreed but doing the best from money saved and sacrificed by the whole family and not being taken from you because you managed to save it.
Off box a little.

System

jennifernil wrote: »

all your assets, including your house, are taken into account

Even if someone's spouse is living in the house?

noh

Clifford_Pope wrote: »

Even if someone's spouse is living in the house?

If it was the spouse of the person being assessed then the value would be disregarded.

noh

greenface wrote: »

..................................................
Playing the system yes . Getting the best for * wouldnt you ? other peoples opinion < not bothered> ## could do a runner with all * money. Yes they could but they wont.

They may do a runner with the money. They may get divorced and have to split it as part of a settlement. They may become bankrupt and have to pay it to creditors. They may predecease their poorly sibling without making a suitable will or no will at all resulting in the money going elsewhere.

jennifernil

Clifford_Pope wrote: »

Even if someone's spouse is living in the house?

Like I said, the rules are more or less the same as in England, so, of course, if the spouse is living there, the house will not be taken into account.

The link I gave makes this clear.

Jake'sGran

tilda9 wrote: »

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?

I believe you may be thinking of the seven year rule, not five. One of my friends transferred ownership of her house to her son over seven years ago and there are no tax implications. It is possible for your Dad to give small gifts whenever he likes without the Revenue getting upset about it. I regularly give £200 - £400 to my grandsons and daughter etc. Now this subject has been brought up I will have a look at the maximum for small gifts.

The move to England from Scotland probably would cause a problem if he gifted the full amount but once again you need to check the web site of the Inland Revenue.

jennifernil

This really is not about IHT or HMRC, it's about deliberate deprivation of assets to avoid having these assets used to pay for care.

And the rules on this are the same both sides of the border.

If a person wants to give gifts to children/grandchildren/ whoever, they really need to start doing it while they are in good health and there can be no suggestion that it was done to avoid paying for care.

In those circumstances there are HMRC rules about the size of gifts that can be disregarded, and about regular giving from income.

greenface

This is a great thread with every discussion a valid one. Head, heart, not my money,if it was my money all good points and useful to OP

Zebra

Tilda - You may be better starting another thread on the Disability or Over 50's boards, as his funding will depend on whether he requires Continuing Healthcare or whether he will be self-funding.

There are very knowledgeable people there who have been through similar situations.

For instance:
https://forums.moneysavingexpert.com/discussion/800521

tilda9

Very helpful all, thank you. Seems to me we have no choice but to declare the money to the LA. Though Dad's care costs are around £1,500 per week, so it won't last very long anyway! Many thanks for your research into this.