Does this seem all right?

Gers

Savvy_Sue wrote: »

I am not so sure about this either: I think if you were borderline for needing to pay for your own care and gave away £3000 it would look very like DofA.

It will all be done to circumstances. It's not possible to say that everyone over a given age can anticipate needing a care home. As I said, my middle 80s mother is hale and hearty in mind and body so a care home is a million miles away from her mind, or, more importantly, her doctors. She has been using her £3,000.00 LEGAL right for a number of years now.

Savvy_Sue wrote: »

I think some documentation of whatever gifts your mother makes would be helpful!

Yep - that's exactly what I said too!

Gers wrote: »

The easy stuff:- if your mother has a surplus of income over usual expenditure then she can gift any amount away to anyone, as long as she is able to maintain her usual standard of living. Can't be done from capital. There has to be a regular pattern of gifting which demonstrates this intention, however even if only one gift is made before she dies the amount is still exempt if some evidence can be found which shows intent to make the gifts regular.

There will be legal stuff about this too, however this is the gist of it. I'm the recipient of such gifts and both my mother and I document the monies (initially via discussing it with her financial adviser and then in an email to both him and I) and by the monies being transferred from her bank direct to mine - so no paper money changing hands.

Even HMRC acknowledge the usefulness of this 'gifting' as it's tax free for both the donor and recipient.

I'm sure that others will be more able to explain things, however it's something which your mother and family could consider doing with her surplus income. She could gift the monies in a rota to each of her children/grandchildren/anyone else.

Gers

itsanne wrote: »

That sounds sensible. Wouldn't bank statements showing cheques given to grandchildren etc cover it? (You'll gather my heart sinks at the prospect of having to record everything separately - there will shortly be 20 between children and spouses, grandchildren and great grandchildren!) Birthdays and Christmas have always been generously treated and grandchildren frequently given "extra pocket money".

I would suggest that only the significant gifts are recorded as they make the regular payments thing traceable. That's if your mother is still dealing with her own affairs. If you are acting as her attorney then it may be best to keep your own records for scrutiny.

I am keeping a spreadsheet of any monies from my mother and bank statements are always a good bet too!

As you and your mother would acting totally within the law then it all shouldn't be too daunting. If there's nothing to suggest that care home fees are looming then enjoy your time together.

itsanne

I don't think I have any more questions now. I'll show this thread to my mother. Thanks to all who contributed - it's been very helpful to have other eyes and opinions.

Mojisola

Gers wrote: »

She has been using her £3,000.00 LEGAL right for a number of years now.

Just in case anyone gets confused when they read this - the £3000 annual gift relates to inheritance tax and not to deprivation of capital.

If someone needs means-tested benefits and they have been giving away £3k every year, they could be assessed as still having that money, depending on their circumstances.

Gers

Mojisola wrote: »

Just in case anyone gets confused when they read this - the £3000 annual gift relates to inheritance tax and not to deprivation of capital.

If someone needs means-tested benefits and they have been giving away £3k every year, they could be assessed as still having that money, depending on their circumstances.

Yes - that's correct.

Seems the thorny issue of deprivation is being brought up into every query regarding the 'elderly' and their finances. It's unfortunate.

Mojisola

Gers wrote: »

Seems the thorny issue of deprivation is being brought up into every query regarding the 'elderly' and their finances. It's unfortunate.

It's important.

Far better for the information to be given in cases where it's not relevant than for someone to give money away and then find themselves in difficulties.

Gers

Mojisola wrote: »

It's important.

Far better for the information to be given in cases where it's not relevant than for someone to give money away and then find themselves in difficulties.

It's unfortunate that questions from people asking about the finances of parents (or themselves for that matter) get flak from others pointing out how it could be construed as deliberate deprivation of assets. This only serves to create worry and confusion, especially when the person saying this stuff is making a gross generalism.

Whilst it is important - no doubt - in many cases it's not part of the picture.

Biggles

Gers wrote: »

It's unfortunate that questions from people asking about the finances of parents (or themselves for that matter) get flak from others pointing out how it could be construed as deliberate deprivation of assets. This only serves to create worry and confusion, especially when the person saying this stuff is making a gross generalism.

Whilst it is important - no doubt - in many cases it's not part of the picture.

It's not flak - it's a warning of how it might be construed by others at some future date.

Nothing wrong with that.

Gers

Biggles wrote: »

It's not flak - it's a warning of how it might be construed by others at some future date.

Nothing wrong with that.

Have you read some threads? And some responses?

Hard hat needed at times...

A warning is acceptable, however there can sometimes be sustained and unwarranted flak directed towards an OP.

antrobus

itsanne wrote: »

...Is there any problem with things as I have described them?

No.

Your mother's view is correct. Even if circumstances were to change, with £24k a year in pension and a £150k house plus her "savings in a cash ISA", she would have to self fund should she need care. Statistically speaking, the average stay in a care home is only two or three years and she has enough money to pay for that.

The LA would only become involved some years down the line, when she had exhausted her savings pot. The chances of the LA even asking questions about her detailed finances some ten years previously are somewhat remote, and the chances of them getting any answers beyond 'I don't know' should be zero.