Gifting inheritance before care-costs

stukno

I understand the OP's concern completely.

Some may consider it unfair that the State picks up the care tab for an older person who has savings or assets, however, given that we all come into this world with nothing, it seems equally unfair that those who saved have their savings taken away to fund end of life care when those who didn't save throughout their life have the same level of care provided.

It's about everyone being treated equally.

It seems to be that recently discussed proposals where everyone is expected to pay a fixed amount are much more just.

stu k

le_loup

stukno wrote: »

... given that we all come into this world with nothing

... and how much do you propose to take with you when you go out?

somethingcorporate

It's not about equality though is it? Self-funding affords choice whereas if the council are paying they will put you in a home with little or no choice in the matter.

kidmugsy

stukno wrote: »

Some may consider it unfair that the State picks up the care tab for an older person who has savings or assets, however......., it seems equally unfair that those who saved have their savings taken away to fund end of life care when those who didn't save throughout their life have the same level of care provided.

This unfair welfare state with its perverse incentives is what people have voted for for decades - politicians have not been able to reform it in the teeth of the opposition of those who work for it, and those who leach off it. C'est la bleedin' vie.

Torry_Quine

tilda9 wrote: »

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.

He will be left with around £23,000 though which is what it should have been all along. Every year a letter should have been sent out saying his current liability dependent on his income and capital. I realise it is difficult for you but personally speaking I would rather an elderly person used the money to provide decent care.

mark55man

very interesting - a curse and a blessing that 3 out of 4 of our elderly dependents passed quickly so we haven't had to worry about this aspect of family care yet.

The one thing that OP must do, is to make sure that if they are spending the money they make sure they get best value. not just from a MSE perspective, but in every other aspect of life a purchase of nearly £50K would receive careful scrutiny of what is being purchased - as we have so sadly seen on telly, you have no guarantee in assuming the £1500 would get you the care you expect. Not quite sure what checks to make but there must be some

(as an aside its like the universities charging £9000 a year but for what - no guarantee of performance and only the hope of long term reform long after your loved ones have paid and been short changed)

greenface

If the care of your dad is costing around £1500 and you are about to declare his savings will there be a "past" care issue to pay?? .

Torry_Quine

greenface wrote: »

If the care of your dad is costing around £1500 and you are about to declare his savings will there be a "past" care issue to pay?? .

Good point they will wonder why they he suddenly has money and will want to know why it wasn't declared before. If no good reason then yes they could be looking at past costs.

Biggles

tilda9 wrote: »

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.

I take it you've enquired about the cost of buying an Immediate Care Needs Annuity? Depending on their assessment of his state of health, it could cost less than £68k to buy an insurance policy to pay his costs for the foreseeable future.

System

Torry_Quine wrote: »

Good point they will wonder why they he suddenly has money and will want to know why it wasn't declared before. If no good reason then yes they could be looking at past costs.

That's what I said earlier. It's nothing to do with moving from Scotland to England, but simply bringing a situation into the open which ought to have been declared at the start.

You have the choice of continuing to conceal it, or owning up. But there are capital exemptions, and it might be worth pursuing these PDQ.