giving money to family

margaretclare

martinpike wrote:

Unless it's all done via cash, which seems unlikely with £100k, it's all traceable.

Whilst I accept the blood from a stone argument, I assume you all have at least some assets? Cars, homes etc?

Personally, I wouldn't wish to go into bat against the government on this one!

BTW, I am not making any assertions as to the rights and wrongs. It's a complex moral issue and I have mixed feelings on it.

I agree with you. I too have mixed feelings on this issue.

I don't think we've been told enough about what's behind this. Whose idea is it? Is it really Dad being super-altruistic on behalf of his 3 children? Why has he waited until he was incarcerated in a hospital bed before thinking of this - it's possible to give amounts to children every year which would not be questioned even if noticed. £3,000 each, I think? If I had £100,000 sitting in savings and I didn't need it, I think that's what I'd do, give them each a reasonable dollop every year.

I am the world's biggest cynic, I know, but.....

Margaret

dipsomaniac

if i was in a position where i was to go into care i would want the best care that money could buy. the council may choose the cheapest option which may not be the best care.

seven-day-weekend

^Thank you Paul, that sets the issue straight and it is made quite clear that the money will be recouped from the person who was given it, possibly by making them bankrupt.

No way would I even try it.

nearlyrich

dipsomaniac wrote:

if i was in a position where i was to go into care i would want the best care that money could buy. the council may choose the cheapest option which may not be the best care.

That's my feeling on this too, I know it seems unfair that people who haven't saved get the (same?) care free but I think planning for retirement with the possibility of needing to pay carehome fees gives you choice, something that people without private funds don't usually have.

EdInvestor

It may be that if has pensions,gets the relevant allwances ( Attendance allowance and the payment from the NHS) plus he buys a top-up immediate needs annuity, which has a tax perk, that there will be money left over from the 100k to give to heirs.

margaretclare

nearlyrich wrote:

That's my feeling on this too, I know it seems unfair that people who haven't saved get the (same?) care free but I think planning for retirement with the possibility of needing to pay care home fees gives you choice, something that people without private funds don't usually have.

I completely agree, and that's something I wish I could put over to people who say 'why on earth are you bothering to save at your age, what are you saving FOR?' Well, that's one illustration - at 71 and 72 respectively, I and my DH could easily live another 20 years and who knows what we may need in that time?

The £100K or thereabouts that the OP mentioned would buy an 'immediate needs annuity' as EdInvestor mentioned, and would ensure choice and comfort in the longer-term for both Dad and Mum in this case. Dad has done well to save so much, presumably during a long working lifetime, and IMHO he should have the benefit of it now when he needs it most.

Margaret

st

thank you for all your kind helpful replies -we have tried to tell him for the past 5 or so years but he thinks we all wanted his money only now after reaaly it is too late does he now realise--he had some restbite in a home and was almost £500 per week others in there paid by local authority.
my mother has free care as she has alziemers sady.

My Dad feels why when others have this free care and he has worked and saved for his money should he have to pay for care plus he would like his family to have the benefit so he can feel good whilst still alive.
is a difficult one indeed for us and him .

Paul_Herring

My Dad feels why when others have this free care and he has worked and saved for his money should he have to pay for care plus he would like his family to have the benefit so he can feel good whilst still alive.

Well with the money he does have, he can buy better care than that which those getting free care are receiving.

margaretclare

st wrote:

My Dad feels why when others have this free care and he has worked and saved for his money should he have to pay for care plus he would like his family to have the benefit so he can feel good whilst still alive.
is a difficult one indeed for us and him .

Yes, it is difficult.

Your Dad is falling into the common trap, one that I hear frequently all around me. 'Why should I have worked and saved when others appear to get everything....'

My view of it is fairly simple. I don't give too much time to worrying about 'what other people get', and nor does my DH. We both came from fairly unpromising backgrounds and both have had good careers, although we made many errors along the way. He could have ended up like Sir Alan Sugar, who came from a similar background, started on a market-stall as a teenager and now has all those millions. Thinking along those lines is just a big waste of time and energy and as I said, I'm still saving, not only for nice holidays, home comforts and a replacement car, but for possible long-term needs which we can't foresee.

As EdInvestor has pointed out, buying an immediate-needs annuity now would give your Dad comfort and choice and STILL leave a comfortable amount to be left to his family. Why not at least look into that possibility? Wouldn't you be happier knowing he got better care in pleasanter surroundings with more choice of where he goes, than just be at the mercy of a cash-strapped local authority?

Look at this:

Example 3: Immediate Needs Annuity
A single payment to cover the cost of care. An 88 year old man has recently suffered from a major stroke and requires 24 hour care. His daily living activities are affected and his family cannot cope. The family are looking to admit him into a nursing home. The cost will be £20,000 per year.

A single payment of £56,771 paid in advance will provide immediate and full lifetime nursing home costs of £20,000 (indexed at 5%) per year (provided that care costs do not increase more than 5% per annum).

I got this from http://www.biggerpensions.com/annuities_in_action.html

Best wishes

Margaret

wendy_and_damian

My uncle is in a residential care home and he wants to give us a money gift for xmas, (totally around 3,000 pounds) how much is he allowed to give, he is getting assisted funding at the residential care home.