Grandparents 'Gifting' to grandkids

mairimc

Is there a limit to how much a grandparent can give to their grandchildren each year? My mum has 6 grandkids and some money in the bank that she would like to give them them before she has to start using all her savings to pay for care in her older age. Any ideas?

xylophone

If your grandmother is anticipating needing care, then it may be as well for her not to contemplate making generous gifts.


http://www.independentage.org/factsheets/what-can-i-spend-my-capital-on-before-moving-into-a-care-home/

https://www.gov.uk/inheritance-tax/gifts

Herbalus

There's no limits to what you can give anybody.

The caveat is that if the givers die within 7 years of the gift, then the gift (or a part of it) is part of the estate for inheritance tax purposes.

patientperson

I was told by a solicitor that one can put upto £100 cash in an envelope and fill as many envelopes as one desires. This then is outside of IHT and need not be declared at all and is outside of the 7 year rule. Perhaps our learned members know whether this is still correct.

Biggles

patientperson wrote: »

I was told by a solicitor that one can put upto £100 cash in an envelope and fill as many envelopes as one desires. This then is outside of IHT and need not be declared at all and is outside of the 7 year rule.

I think he just meant you probably won't get caught. Who was his last client, Al Capone?

Biggles

mairimc wrote: »

Is there a limit to how much a grandparent can give to their grandchildren each year? My mum has 6 grandkids and some money in the bank that she would like to give them them before she has to start using all her savings to pay for care in her older age. Any ideas?

To be honest, there's not enough information.

How old or infirm is she?
What are her total assets worth (inc her house)?
How much is she wanting to give?

patientperson

Biggles wrote: »

I think he just meant you probably won't get caught. Who was his last client, Al Capone?

Nice one .. A good chuckle over my coffee.

However, there may be some truth in my original comment.

See Myth 5 in this article. http://www.theguardian.com/money/2015/sep/08/five-common-inheritance-tax-myths-exploded

missbiggles1

Herbalus wrote: »

There's no limits to what you can give anybody.

The caveat is that if the givers die within 7 years of the gift, then the gift (or a part of it) is part of the estate for inheritance tax purposes.

The OP isn't enquiring about IHT, the question concerns care home fees and deprivation of capital.

jimjames

patientperson wrote: »

I was told by a solicitor that one can put upto £100 cash in an envelope and fill as many envelopes as one desires. This then is outside of IHT and need not be declared at all and is outside of the 7 year rule. Perhaps our learned members know whether this is still correct.

It's not going to help if the money is meant to go to one person. Every gift in your scenario would need to be a to a different person. And it still doesn't make any difference for deprivation of capital

mairimc wrote: »

money in the bank that she would like to give them them before she has to start using all her savings to pay for care in her older age. Any ideas?

Aside from deprivation of capital issues she might want to consider if she really wants to be in a council home that she has no control over. If she has money then she can choose rather than be dumped somewhere not of her choice.

Keep_pedalling

To give all your assets away is very foolish. Apart from the deprivation of assets issue already raised, she should consider that there is a strong chance that she will never actually require care, but may need that money herself for any number of emergencies that could occur during her latter life.

How much are we talking about here? Your statement about her having to use all her savings is wrong anything under £23,100 is disregarded. Does she also own her own home?

diamonds

Child Trust Funds for younger grandkids.


Considerations of CGT https://www.gov.uk/capital-gains-tax/what-you-pay-it-on


If there is a near immediate (6 months) or known future care need (severe worsening pre existing conditions) and disposal is done, local authorities can claw back assets...'deliberate deprivation of assets', the local authority can ask a court to consider any medical over any time frame, some local authorities apply sense to, some local authorities apply to you as if you are a full external funding body of your own who carried out fraud on your accounts.


It is not just down to the legislation, individual council guidelines and training alleged based loosely on the legislation and a individual council employees assessment of how a asset was disposed of and how long they 'should have known they needed a few thousand pounds 5 years ago for care needs' thankfully a judge has more grasp than unqualified poorly misguided council employee trained by their own employers financial agenda.


It can all be a very grey area for unsuitable council staff making legal decisions
with absolutely no qualification or correct guidance from their employer with regards to disposal. It between council and/or employee can be hit or miss.