Savings, care home fees and gifts

Giddytimes

Hi,

My great Aunt is currently living in a care home, she owned her own home and had savings, so she is self funding the care home. She probably has around 30k of savings left.

I have recently become engaged, my great aunt would like to contribute to the wedding. She has 1k, which she says she has had earmarked for my wedding since I was 16.

Can my aunt make this contribution towards the wedding costs? I am worried that her giving us a cheque will be seen as a depreciation of capital as she is likely to drop below the savings limit for paying your own care home fees within the next year.
What will happen when she does drop below that limit? Do the council examine her financial records to check for such gifts?

She is very insistant that we must accept the cheque, but I don't want this to cause her any issues.

Thanks!

onlyroz

I'm sure somebody with more knowledge can advise, but I *thought* you could gift up to £3k a year without any implications for tax or otherwise.

Mojisola

It may be considered deprivation but even if it is, £1000 isn't going to make much difference to her. If the council do the sums as if she still has that £1000, they will say that she is earning £1 for every £250 in savings so will count her as having £4 a week in interest.

If giving you the gift will make her happy, accept it with thanks. You could always give her £4 a week in the future if she really needed it.

pollypenny

I think the £3000 is for parents. However, the allowance is doubled for marriage.

It'll probably be fine, but google it.

Mojisola

onlyroz wrote: »

I'm sure somebody with more knowledge can advise, but I *thought* you could gift up to £3k a year without any implications for tax or otherwise.

This is for inheritance tax, not deprivation of assets.

McKneff

I asked this on the boards last week and I was told that if its a wedding you can actually give £5k,
other than that its £3k.

So accept the £1k in the spirit it is given and hope you have a lovly wedding.

McKneff

Mind you, apart from 'deprivation of assets' to enable people to get benefits think its a bit of a !!!!!! when you cant do what you want wtiht your own money !!!!!!.

Marisco

McKneff wrote: »

Mind you, apart from 'deprivation of assets' to enable people to get benefits think its a bit of a !!!!!! when you cant do what you want wtiht your own money !!!!!!.

It could be classed as the same thing though, as she would need state help with care home costs. I'm not saying it is in this case, but the DWP would class it as such.