Question on savings

worriedne

Not sure if this is the right forum but a friend has just found out his aunt, who died over 10 years ago, left him £50000. It's such a pity it wasnt given at the time when his health would have llowed him to enjoy it.
Anyway, he and partner have struggled on pension for years and their children have hlped out a lot over the years. He now rceives some daily care through local council and will have to declare the income.

Question is, how much mney can he spend without being accused of avoiding payment of care fees? He always claimed he would repay his family if he ever could - although they really didn't expect it to happen.
Can he give them £10000 and buy a car for his wife to use?
It is their money after all and if he had received when he should have done, it would have been spent by now giving thm a better life. So unfair! Does anyone know the rules about this?

colsten

worriedne wrote: »

No point in screaming "so unfair" when you haven't even got the answers to your questions. Any inheritance doesn't count as income, only interest or capital gains from an inheritance counts as income, and most means tested benefits have an allowance higher than £10k.

Your friend should consult his CAB for detailed rules. Also, Age Concern has some good information: http://www.ageuk.org.uk/money-matters/claiming-benefits/means-tested-benefits/. Might not be exactly right for your circumstances, but look on their site for relevant information.

worriedne

Hi colsten,
Thanks for your reply. (I was referring to the fact that he has really struggled the past few years and it is such a shame he didnt get to enjoy the money before his health detiorated. He would have loved to travel but now isn't well enough to go far.
Thanks for the info - I will check it out.

xylophone

Any inheritance doesn't count as income, only interest or capital gains from an inheritance counts as income, and most means tested benefits have an allowance higher than £10k.

The person will have to declare the capital?
http://www.alzheimers.org.uk/site/scripts/documents_info.php?documentID=2710

"Care and support for someone in their own home

Most local authorities will charge for care that is provided in the person's own home. How much the recipient of care pays will depend on the financial assessment, and also where the person lives, as each local authority can decide its own charges.

To help decide whether they will pay for someone's care, each local authority also has their own guidance. This may contain a savings and income threshold. Anyone with savings or income above this threshold is expected to pay for their own care. If their savings are below the threshold, the local authority should fund their care."

The inheritance would count as savings?