Help re future care costs

margaretclare

I'm really not wanting to start an argument here and I'm sorry if I've hijacked to O/p's thread but I was backing her mums idea of gifting a bit of her hard earned/saved money to a caring daughter before she actually needs to pay care home fees, if indeed she ever does.

Many people do worry about this. It comes up regularly on this site and others. Often under the heading of 'how can I save my hard-won assets from being taken to pay for my care'. However, it is worth remembering that only a minority of people end their days in full-time residential care.

missbiggles1

bjbyorkshire wrote: »

We've just sold our deceased daughters house and I have given our son a sum of money £12,000 in line with what Hubby and I can give in each year backdated for one year. I will give him £6,000 after 5 April for next year. After that it seems that I must wait another year to gift more to him.

It seems very wrong that you can't give whatever amounts you want to who ever you want if the tax has been paid on it but it would make life very difficult for the recipient if in 4 years time, for example, I needed care and they asked/demanded that money back.

Many folks make no attempt to save when they are working but they get looked after anyway.

I'm really not wanting to start an argument here and I'm sorry if I've hijacked to O/p's thread but I was backing her mums idea of gifting a bit of her hard earned/saved money to a caring daughter before she actually needs to pay care home fees, if indeed she ever does.

It seems very wrong to many of us that someone should want to give away money in the expectation that the state will then pay for their care needs.

Mojisola

bjbyorkshire wrote: »

We've just sold our deceased daughters house and I have given our son a sum of money £12,000 in line with what Hubby and I can give in each year backdated for one year. I will give him £6,000 after 5 April for next year. After that it seems that I must wait another year to gift more to him.

It seems very wrong that you can't give whatever amounts you want to who ever you want if the tax has been paid on it but it would make life very difficult for the recipient if in 4 years time, for example, I needed care and they asked/demanded that money back.

Another thought - if you have enough money to worry about inheritance, then deprivation of assets is rarely an issue.

If you are giving only £3000 each a year to avoid paying IHT in the future, you would have been better off doing a variation on your daughter's estate and letting your son inherit directly from his sister.

bjbyorkshire

Lots of food for thought thanks.

I'm mulling thoughts over in the same way as the O/P and her mother are doing.

Perhaps our solicitor did say that we could do a deed of variation at the time of her death, but our heads were all over the place at that time and it's only quite a bit later that you feel in a frame of mind to make big decisions.

You're quite right. I can pay for care should I need it so the above thoughts were in answer to ellieq's post.

I wish them well with whatever option they decide upon. Second guessing what the future holds is not possible for any of us but listening to all options and opinions is always helpful.

Thanks for the input.

Keep_pedalling

Getting old with little or no money, is not to be recommended. If you become frail, lonely and isolated but don't need nursing care it is unlikely that a LA will go beyond providing home visits by carers, at least that up to now has been the case with my 89 year old mother, who really should have been in residential care a year ago, but the best we have been offered recently is assisted living which is not much use as there are no spaces available.

Most of the care homes I have checked out actually could have taken her immediately but the LA panel who approve the funding do not consider her to be vulnerable enough,

Keep_pedalling

I would also suggest that £70k is not a lot of money, and if your mother is using that to pay some of her rent then the chances of still having over £24k (below that level she would not have to self fund) if she does need care at some point in the future are slim.

The real danger here is not going into care and running low on savings. She would not be able to get housing benefit until they had dropped to £16k and not be able to get full HB until they had fallen to £10k. And as with care costs depreciation of assets applies to HB as well.

iolanthe07

I would also suggest that £70k is not a lot of money,

You're right. My mother has spent over £150,000 in nursing home fees, but luckily the sale of her property has covered it so far. She is bedridden, doubly incontinent, confused and has to be fed by hand, so needs skilled nursing care. When her assets fall below £23,250 (IIRC) she will be eligible for state help, but I am worried that she may then be moved into a cheaper place with poorer facilities.

Keep_pedalling

iolanthe07 wrote: »

I would also suggest that £70k is not a lot of money,

You're right. My mother has spent over £150,000 in nursing home fees, but luckily the sale of her property has covered it so far. She is bedridden, doubly incontinent, confused and has to be fed by hand, so needs skilled nursing care. When her assets fall below £23,250 (IIRC) she will be eligible for state help, but I am worried that she may then be moved into a cheaper place with poorer facilities.

Provided the home she is currently in is not one that only takes private patients that should not happen.

Mojisola

iolanthe07 wrote: »

She is bedridden, doubly incontinent, confused and has to be fed by hand, so needs skilled nursing care.

Isn't she entitled to NHS continuing care? I know it's very hard to get but worth looking at.

troubleinparadise

iolanthe07 wrote: »

I would also suggest that £70k is not a lot of money,

You're right. My mother has spent over £150,000 in nursing home fees, but luckily the sale of her property has covered it so far. She is bedridden, doubly incontinent, confused and has to be fed by hand, so needs skilled nursing care. When her assets fall below £23,250 (IIRC) she will be eligible for state help, but I am worried that she may then be moved into a cheaper place with poorer facilities.

Your poor mum...and you. Rather than worrying, why not ask the nursing home what their policy is should this situation arise? The home my mum was in committed to keeping the resident there for life, although a room move might have been necessary. At least then you would know what to expect, rather than being stressed about that along with everything else.