POA & Accepting Cash Gift

xyz789_2

Not sure if this is the best forum for this, so apologies if it should be elsewhere.

My husband has Power of Attorney for an elderly family friend. The man has no immediate family, never married, no kids. My husband has always been a regular visitor to him and helped him when needed. A few years ago he had a bad fall and could no longer live alone. My husband researched homes for him, coordinated the selling of his house etc etc and got POA at the man's request.

He has a will where he gives some people some money and the rest to charity. He has about £250k after the sale of his house when he went into a home. He wants to gift my husband a significant sum just now, not in his will after death. Being POA can my husband accept this (I'm concerned of it looking dodgy, like he's helped himself)? Is it likely to cause issue with a will at a later date? Does he need proof it was given as a gift? Any other comments? This would be a great help in our MFW journey!

Thanks

Thrugelmir

Presumably the proceeds from the sale of the house will be required to fund the care home fees.

Suggest that your husband consults a solicitor. As a IHT liability could arise amongst other issues.

somethingcorporate

And a deprivation of assets one too I would assume.

xyz789_2

Thanks. His monthly pension covers more than his care home fees, and even after the gift there'd still be £200k-ish left over - he's not gifting us the lot.

getmore4less

If the estate is currently £250k ish and unlikely to increase then no IHT issues.

deprivation of assets might be an issue if the money runs out


what sort of POA? is the man of sound mind?

xyz789_2

I don't see deprivation of assets being an issue as his pension currently covers more than the care home fees and he has little else that he spends on.

I don't know off-hand what sort of POA, but he is of sound mind.

g_attrill

I would also think a solicitor is the safest way to proceed, I imagine there is a standard letter they can draw up. Was the POA done through a solicitor? If there isn't any family then it's not likely that anybody will be out to cause trouble, that is one relief!

somethingcorporate

xyz789 wrote: »

I don't see deprivation of assets being an issue as his pension currently covers more than the care home fees and he has little else that he spends on.

I don't know off-hand what sort of POA, but he is of sound mind.

That's good news, it does sound like it wouldn't be an issue but still seek legal advice. The complexity obviously comes from the POA actually giving a gift to themselves which does sound a little perverse!

Good luck.

xyz789_2

somethingcorporate wrote: »

That's good news, it does sound like it wouldn't be an issue but still seek legal advice. The complexity obviously comes from the POA actually giving a gift to themselves which does sound a little perverse!

Good luck.

Yes, that's our concern! I think legal advice would be the way forward. Thanks