Can Mum give me money?

bryanb

Thamesview wrote: »

Thank you everyone....

Now I'm wondering if the Law says she's allowed to give £50,000 away.....and if I'm allowed to receive it...... I had heard somewhere that you're only allowed to give away a few thousand otherwise it's classed as trying to give money away to avoid inheritence tax?

It's OK if she lives another 7 years.

noelphobic

SailorSam wrote: »

Once most of the assets are gone, then they'll get help in the way of benefits.
I think it's £16k i assets you can keep. Over that you need to pay. Years ago it wasn't like that, people could get their care home paid but today the Govt hasn't got the money.
Think of it like, if Prince Charles went into a home you'd expect William and Harry to sell his house before they asked you for money to keep him.

/

I don't think Prince Charles is ever likely to go into a home. He would be cared for 24/7 in one of his many homes.

I don't think it's about whether the government has the money (some of which is from MY taxes!) It's what they do with the money that's the issue. And come to think of it some of that money goes to Prince Charles so we're already paying for his 'keep' :eek:

Thamesview

When the LA assessed my mum's finances, she had already given me the money. She has the stroke after she'd sold the flat, after she'd moved into my old home. The money therefore was in my bank account, ready to use to port my mortgage. They assessed her on her property status (none at the time of the assessments), her bank accounts, savings and pension income. I answered truthfully when they asked me about her money, where she lived etc; she was living with me whilst she sold her flat, then moved into my small home, then gave me the money, then she had a stoke and went into hosptial for 3 months. She's now been in care for 14 months.

Linton

Thamesview wrote: »

Thank you everyone....

Now I'm wondering if the Law says she's allowed to give £50,000 away.....and if I'm allowed to receive it...... I had heard somewhere that you're only allowed to give away a few thousand otherwise it's classed as trying to give money away to avoid inheritence tax?

Yes, that is true. She can give away the money but if she dies within 7 years of making the gift then the money she gave away can be regarded as part of her estate for tax purposes and so subject to inheritance tax of 40% on anything above a total of £325K. If the total is less than £325K then there is no tax.

Normally it's the estate that has to pay the tax, but if it cant then HMRC may chose to chase the gift recipients, but the HMRC website says that this is unusual.

noelphobic

Thamesview wrote: »

Thank you everyone....

Now I'm wondering if the Law says she's allowed to give £50,000 away.....and if I'm allowed to receive it...... I had heard somewhere that you're only allowed to give away a few thousand otherwise it's classed as trying to give money away to avoid inheritence tax?

Inheritance tax only currently applies if an estate is valued at over 325k

edited to add that I cross posted and previous poster gave more info!

bryanb

Thamesview wrote: »

When the LA assessed my mum's finances, she had already given me the money. She has the stroke after she'd sold the flat, after she'd moved into my old home. The money therefore was in my bank account, ready to use to port my mortgage. They assessed her on her property status (none at the time of the assessments), her bank accounts, savings and pension income. I answered truthfully when they asked me about her money, where she lived etc; she was living with me whilst she sold her flat, then moved into my small home, then gave me the money, then she had a stoke and went into hosptial for 3 months. She's now been in care for 14 months.

I'm afraid that won't do. The question they ask is "Do you, or have you ever owned property?" The words may differ a bit but you get the idea.

Thamesview

If my Mum has to live another 6 years in the fetal position, that would be the most cruel thing. Her mind has nearly gone, her mobility is frozen and she can't see much. she cant watch TV or read or even look at pictures. Her Dr says her heart, liver function and lungs are all good, it's just the stroke which has taken her joy.

SailorSam

noelphobic wrote: »

However, I don't want to hijack this thread so will leave it there.

Plus you haven't told me how people will live when they have given their pensions away to their children!

Hey don't leave it, you're not hijacking any threads. I for one agree with everything you've said and it's people like you that have been through the same situation that can give the Op the best advice

Thamesview

They asked me if she owned any property and I said no because she didn't at the time. I told them about how her husband threw her out of his council house and then divorced her a couple of years ago. My brother bought her the flat before he died.

bryanb

Thamesview wrote: »

They asked me if she owned any property and I said no because she didn't at the time. I told them about how her husband threw her out of his council house and then divorced her a couple of years ago. My brother bought her the flat before he died.

My advice then is to keep your head down and hope they don't re-assess. They reassessed my mother 4 times in 5 years, and then questioned probate when she died